Brp, Inc. · TSX:DOO
Brp — Q4 2024 Earnings Presentation
24 slides from Brp's earnings presentation, Mar 28, 2024
Slide 1: Quarterly Review: Fourth Quarter Ended January 31, 2024
QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain statements included in this presentation, including, but not limited to those relating to our Fiscal Year 2025 financial guidance (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized earnings per share
Slide 3: José Boisjoli, President and CEO
JOSÉ BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2024 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2024
Slide 4: FY24 Financial Highlights
FY24 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ 3% 11% 8% $10,033 $10,367 $12.05 $10.67 $9.47 $11.11 FY23 FY24 FY23 FY24 FY23 FY24 Highlights vs. Last Year ◼ Revenues increase of 3% primarily due to a higher volume of SSV, A
Slide 5: Strengthened our position as the #1 OEM in Powersports
Strengthened our position as the #1 OEM in Powersports Delivered a record year Reinforced our position as the Continued gaining market shares Q2 Retail Evolution in terms of retail sales OEM of choice for dealers BRP NORTH AMERICAN BRP NORTH AMERICAN POWERSPORTS NORTH AMERICAN POWERSPORTS POWERSPORT
Slide 6: FY24 Q4 North American retail performance impacted by difficult comparable and winter conditions
FY24 Q4 North American retail performance impacted by difficult comparable and unfavourable winter conditions Q4 Retail Evolution FY24 Q4 and Full Year Retail Performance BRP NORTH AMERICAN FY24 Q4 FY24 POWERSPORTS MARKET INDUSTRY INDUSTRY Units SHARE MID-SINGLE LOW-SINGLE TOTAL RETAIL 10% DIGIT % 8
Slide 7: Global Trends Update
Global Trends Update FY24 Q4 Powersports Retail Growth by Region Market Dynamic › Continuing to observe softer industry trends in Asia- Pacific and Europe ▪ North American market more stable outside of snowmobiles FY24 Q4 ▪ Positive retail momentum in Brazil driven by PWC and ORV, INDUSTRY and in Me
Slide 8: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues up 9% + ◼ Favourable product mix Higher sales programs +9% + ◼ Higher volume of 3WV due to timing of shipments between Q3 and Q4 Q4 Retail Sales Update $1,363.9 SIDE-BY-SIDE ALL-TERRAIN THREE-WHEELED $1,254.8 North A
Slide 9: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues down 28% ◼ Lower volume of products sold Higher sales programs 28% + ◼ Favourable pricing Q4 Retail Sales Update $1,319.5 PERSONAL North American SNOWMOBILE PONTOON $952.6 Year-over-year retail growth WATERCRAFT FY23 Q4
Slide 10: Powersports PA&A and OEM Engines / Marine
Powersports PA&A and OEM Engines / Marine Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines | Revenues down 23% ◼ Lower volume of PA&A sold driven by reduced shipments to manage network inventory levels and 23% unfavourable winter conditions impact on
Slide 11: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2024 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2024
Slide 12: FY24 Q4 Financial Overview
FY24 Q4 Financial Overview Financial Highlights Q4 Net Income Bridge Q4 Comparison 12-month Comparison CA$ millions FY24 FY23 Change FY24 FY23 Change Total Revenues $2,691.8 $3,076.3 ($384.5) $10,367.0 $10,033.4 $333.6 (158) Variation % -12.5% +3.3% 10 365 (55) 78 (116) 23 41 Gross Profit $652.8 $78
Slide 13: FY24 Capital Allocation Update
FY24 Capital Allocation Update FY24 Highlights Record Year of Q4 Free Inventory Cash Flow [1] Position Overview Delivered a record year with over $1B in free cash flow[1] generation FREE CASH FLOW[1] › Reflecting our focus on tight cash management GENERATION CA$ millions 1,072 Sustained a high level
Slide 14: BRP North American Powersports Dealer Inventory Update
BRP North American Powersports Dealer Inventory Update Q4 Inventory Position Overview Network Inventory Bridges vs pre-Covid Levels DEALER INVENTORY OFF-ROAD SEASONAL PRODUCTS EVOLUTION VEHICLES AND 3WV North America Powersports, Units FY24 Q4 vs FY20 Q4, North America, Units FY24 Q4 vs FY20 Q4, Nor
Slide 15: FY25 Full-Year Guidance - as at March 28, 2024
FY25 Full-Year Guidance - as at March 28, 2024 FY24 FY25 Guidance ACTUAL EXPECTED RESULT REVENUES YEAR-ROUND PRODUCTS $5,339.4 DOWN 4% TO 7% SEASONAL PRODUCTS $3,410.7 DOWN 18% TO 22% POWERSPORTS PA&A AND OEM ENGINES $1,184.6 DOWN 2% TO 5% MARINE $432.3 DOWN 5% TO UP 5% TOTAL REVENUES $10,367.0 $9.1
Slide 16: FY25 Guidance Key Drivers
FY25 Guidance Key Drivers Key elements that are expected to impact FY25 vs FY24 EXPECTED EPS IMPACT KEY DRIVERS FY25 VS FY24[1][2] VOLUME AND MIX Planning for lower shipment volumes as we aim to reduce our network inventory levels to support our dealers’ profitability, partially ~$2.50 offset by con
Slide 17: José Boisjoli, President and CEO
JOSÉ BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2024 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2024
Slide 18: Closing Remarks
Closing Remarks WELL POSITIONED TO OUTPERFORM IN THE CURRENT CONTEXT › Operating in softer end-market conditions: Product diversification and innovation provide an edge › Strong momentum in ORV and upcoming new product introductions position us for continued market share gains in SSV and ATV Can-Am
Slide 19: Q&A Period
Q&A PERIOD QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2024 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2024
Slide 20: Appendix
APPENDIX QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2024 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2024
Slide 21: Reconciliation Tables
Reconciliation Tables 3-month periods ended 12-month periods ended CA$ millions Jan. 31, 2024 Jan. 31, 2023 Jan. 31, 2024 Jan. 31, 2023 Net Income $188.2 $365.1 $744.5 $865.4 Normalized Elements: Foreign Exchange Loss on Long-term Debt and Lease Liabilities (97.5) (56.6) 10.8 92.4 Cybersecurity Inci
Slide 22: Reconciliation Tables
Reconciliation Tables Free Cash Flow 3-month periods ended 12-month periods ended Jan. 31, Jan. 31, Jan. 31, Jan. 31, Jan. 31, Jan. 31, Jan. 31, Jan. 31, Jan. 31, Jan. 31, Jan. 31, CA$ millions 2024 2023 2024 2023 2022 2021 2020 2019 2018 2017 2016 Net Cash Flows Generated from Operating Activities
Slide 23: Appendix - Continued: Non-IFRS Measures
Appendix - Continued Non-IFRS Measures Normalized EBITDA is defined as net income before financing costs, financing income, income tax expense (recovery), depreciation expense and normalized elements. Normalized EBITDA margin is defined as the Normalized EBITDA divided by revenues. Normalized Net In
Slide 24: Brand logos
us Ski-Doo Lynx Sea-Doo Can-Am Rotax Alumacraft Manitou FT) ADVENTURE BY DESIGN Quintrex