Flat Sales, Margin Pressure, Supply Chain Constraints - Lots To Look Into BRP's Q1 Results

  • BRP Inc DOOO DOO reported first-quarter FY23 sales flat Y/Y at C$1.81 billion. The company said it experienced continuing supply chain-related disruptions and inefficiencies in an increasingly inflationary environment.
  • The gross profit for the quarter fell 16.2% Y/Y to C$454.4 million, and the gross margin contracted 490 basis points to 25.1%.
  • Normalized EBITDA decreased 28.2% Y/Y to C$272.1 million.
  • EPS was C$1.46 versus C$2.79 last year. Normalized EPS was C$1.66 versus C$2.53 a year ago.
  • The company's Board declared a quarterly dividend of C$0.16 per share for holders of its multiple voting shares and subordinate voting shares. 
  • Outlook: BRP Group continues to expect FY23 total company revenue growth of 24% - 29% Y/Y.
  • The company expects FY23 normalized EPS of C$11.00 - C$11.35 (prior view C$10.75 - C$11.10).
  • It expects FY23 normalized EBITDA growth of 12% - 15%.
  • For Q2, it anticipates Normalized EBITDA to be flat to down on a percentage basis in the low single digit due to supply chain constraints which are expected to continue throughout the year.
  • Price Action: DOOO shares closed higher by 2.64% at $79.98 on Thursday.
  • Photo Via Company
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Posted In: EarningsNewsGuidanceCanada
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