BRP, manufacturer of Can-Am products, recently announced their financial results for the second quarter of their 2018 fiscal year which ended July 31, 2017. (All dollar amounts are in Canadian dollars.) Revenues increased 20% for the quarter to $1,027 million driven by strong demand in side-by-side and personal watercraft. Net income increased $168.9 million to $100.1 million.
It was a strong quarter for BRP and they continue to make solid gains in the UTV market and continue to take market share. The Defender line continues to meet with success on a quarter to quarter basis. The company has built out their dealer network and are looking to improve dealer performance. Look for them to introduce additional models on a regular basis.
The following are additional highlights from the earnings call and presentation that relate to the utility vehicle market.
- Company introduced the 172hp Can-Am Maverick X3 Turbo R model during the quarter
- North American retail sales for side-by-sides increased 50% for the quarter in an industry that grew low teens %.
- North American ATV retail sales grew high teen % in an industry that grew low single digit %.
- For side-by-side model year ending June 30, Can-Am retail sales grew mid-thirties % in an industry up mid-single digit %.
- The X3 and the Defender line are particularly strong performers.
- Side-by-side sales are driving parts, accessories and clothing revenue hire
- Management is seeing results from improving dealer performance and is concentrating on that area rather than looking to add new dealers. Nearly 300 dealers were added in the last four years.
- Side-by-side sales outside of North America are very strong as well.
- Management reports that promotional activity in the ATV and side-by-side market is high with many new models being introduced and OEMs looking to reduce inventory.