Joseph-Armand Bombardier received a patent in 1937 for the first vehicle that could travel on snow. He invented this product in his Quebec garage, which a larger version following until he established a company in 1942. As the years passed, Bombardier continued to refine his idea until the Ski-Doo brand launched in 1959.
Several other brands came from Bombardier’s creativity or joined his efforts to encourage people to explore the outdoors., including Sea-Doo, Can-Am, Rotax, Manitou, Alumacraft, Lynx, and Evinrude.
Bombardier sold its recreational products division in 2003 so that BRP could become an independent company. Since then, it has entered the side-by-side market, introduced the first three-wheel vehicle to the industry, and had a successful IPO.
This aggressive approach to growth for BRP has created numerous dividends for the young company. Not only are they meeting consumer needs in every way, but they are also doing it in the tradition that Bombardier started from his garage decades ago.
Highlights of BRP’s FY 2019 Financial Performance
BRP had a strong financial year with its fleet of powersports vehicles that perform in all environments, proving that its strategy in a mature market is the right one to take.
The company experienced revenues of $6.05 billion in the North American market, which is an increase of 15.4% from the year before. It led the company to achieve a gross profit of over $1.45 billion – a 24% improvement from FY18. Although the pandemic era of 2020 is changing consumer spending in several ways, BRP believes it is still possible to achieve a 15% growth over the coming months.
During the fourth quarter, the North American powersports retail segment grew by 12%. Side-by-side vehicles saw an impressive 30% increase in sales. Gross profits for the quarter were almost $400 million, with normalized net income topping $100 million for those three months.
Jose Boisjoli is the CEO and President of BRP. “We concluded another record year in FY20,” he said. “Our 15% increase in retail sales in a flattish North American industry proves our strong position in the market and allows us to deliver our Challenge 2020 five-year plan one year in advance by exceeding $6 billion in revenues and $3.50 earnings per share targets.”
Although the company is maintaining a measure of financial flexibility to approach FY21 because of COVID-19, there is some hope that consumers might use their stimulus checks in the United States to purchase a powersports vehicle. The Ski-Doo MXZ provides an energetic performance with a sled that can conquer rough, twisting trails. This model has an MSRP of $8,649.
The Ski-Doo Tundra is even more affordable, offering a telescoping front suspension that handles a deep-powder ride with ease. It currently retails from $8,149, excluding preparation and transport charges.
You can also go online to build your preferred vehicle if you want something more customized.
Side-by-sides under the Can-Am brand start at just $10,299 for the Defender series. Consumers can also purchase ATVs from BRP, starting with the DS model for youth at only $2,349.