Although Canada’s Bombardier Recreational Products (BRP) caught Covid like everybody else in the industry, it achieved pretty impressive third-quarter results. BDN financial editor Roger Willis reports.
During the nine months of a current fiscal year which somewhat bizarrely covers February through to the end of October, BRP’s global revenue was 6.7% down to £2.39bn. But losses from a pandemic-induced production halt in the springtime slashed overall operating profit by 46.8% to £125.1m. And net profit plunged by 60.9% to £57m.
However, its North American powersport sales had held up very well, led by quadbikes and side-by-side ORVs, with a 23% rise. So going forward into Q3 meant rapid recovery. Revenue in the most recent quarter increased by 1.9% year-on-year to £969m. Assiduous cost-cutting wiped £31m off operating expenses, resulting in an operating profit 36.7% higher at £164.4m. Net profit surged by a tremendous 46.9% to £114.9m — in both cases removing red ink at the end of July.
Unsurprisingly, BRP chief executive José Boisjoli was “very pleased” with Q3 performance. He added: “I would also like to thank the remarkable dedication of our employees, dealers and suppliers, who have risen to the occasion and allowed us to continue to deliver exceptional results while still ensuring the health and safety of our people everywhere around the world.”