VALCOURT, Que. — Supply chain issues in the recreational vehicle industry are impacting BRP Inc.'s product delivery timelines, but the company says it's still on track to deliver its target full year volume.
During its latest quarterly review on Thursday, the Valcourt, Que.-based company said it was facing tight availability for certain materials and parts, particularly semiconductors, meaning that some products will have to be retrofitted with the missing components before being shipped out.
However, BRP Inc. said it was planning on finding alternative suppliers and improving its production schedule to mitigate the supply issues.
The company also reported a profit of $244.4 million in its latest quarter compared with a loss a year ago and raised its financial guidance for the year.
CEO Jose Boisjoli told reporters the company had a "solid" start to the year, attributing the growth to robust demand for products and making it a full fiscal year from a two-month production suspension at the start of the COVID-19 pandemic.
The maker of Ski-Doos and Sea-Doos says the profit amounted to $2.79 per diluted share for the quarter ended April 30 compared with a loss of $226.1 million or $2.58 per diluted share a year ago when the pandemic began.
Revenue in what was the first quarter of the company's financial year totalled $1.81 billion, up from $1.23 billion in the same quarter last year.
On a normalized basis, BRP says it earned $2.53 per diluted share in the quarter compared with a normalized profit of 26 cents per share a year ago.
In its outlook, BRP says it now expects revenue for its full financial year to grow 28 to 33 per cent compared with earlier guidance for growth between 25 and 30 per cent.
The company also raised its expectations for its normalized earnings per diluted share for the year to between $7.75 and $8.50, up from its earlier forecast for between $7.25 and $8.
"We are maintaining a wider-than-usual guidance range given the ongoing challenge we are facing in the supply chain," Boisjoli said.
He added the company expects retail growth to take a hit in the second and third quarters of its fiscal year mainly due to the supply chain constraints.
CFO Sebastien Martel called the most recent reporting period BRP Inc.'s "strongest quarter ever" when it came to its normalized EBITDA which came in at $379 million compared to the $123 million raised in the same quarter in its previous fiscal year.
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This report by The Canadian Press was first published June 3, 2021.
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This story was produced with the financial assistance of the Facebook and Canadian Press News Fellowship.
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