BRP Inc. (TSX:DOO) raised guidance after a strong second quarter which saw revenue rise 14% driven by solid consumer demand.
In the three months ended July 31, the financial second quarter, the Valcourt, Quebec-based firm said it significantly outpaced the North American powersports industry with an impressive 41% growth in retail, further increasing market share in most product categories.
José Boisjoli, president and chief executive of BRP, said: "With our solid momentum, we expect fiscal 2024 to deliver record revenues and profitability.
"Reflecting our positive outlook, we are increasing the range of our financial guidance to normalized EPS – diluted between $12.35 and $12.85," he added.
BRP has previously guided to a range between $12.25 to $12.75.
Revenue climbed 14% to $2.78 billion from the year before, while normalized EBITDA of $473.1 million was up 13%.
The increase in revenue is mainly explained by high deliveries of units due to improvements in the supply chain and sustained demand, which is driven in part by strong SSV, ATV, SeaDoo pontoon and Snowmobile retail sales, the firm said.
Supply chains have gradually stabilized, resulting in production efficiencies, a return to normal wholesale delivery patterns and an increase in gross profit margin compared to the same period last year.
However, these increases were partially offset by more costly sales programs, which are mostly due to rising interest rates, BRP said.