Ski-Doo Maker BRP Looks to Shed Struggling Marine Brands

By Adriano Marchese

Sea-Doo and Ski-Doo maker BRP said it intends to sell off the majority of its marine businesses, which have been weighed down by softer consumer demand, to focus on powersports products such as snowmobiles and all-terrain vehicles.

The Canadian company Thursday said it had begun a process for the sale of brands including Alumacraft fishing boats, Manitou pontoon boats and Australian boatmaker Telwater, as well as marine parts, accessories and apparel. The sale won't include anything related to the Sea-Doo watercraft brand, BRP said.

The Valcourt, Québec, company said a challenging economic context prompted it to turn its attention and investments toward year-round powersports products, seasonal products, parts, accessories and apparel, as well as its engine-manufacturing business.

In its latest quarter, revenue from the marine segment, its smallest, fell by more than half to 59.4 million Canadian dollars ($43.2 million). This represented about 3% of total revenue that quarter. Much of the decline was due to the problem of high dealer inventory, mainly on softer consumer demand, and higher sales programs.

"Given the current dynamics of both the marine and powersports industries, we have decided to double down on our core powersports activities and to sell our Marine businesses," Chief Executive Jose Boisjoli said.

By shedding the marine business, BRP intends to solidify its position as a powersports original equipment manufacturer, though marine isn't the only segment struggling in the current economic climate. Revenue from year-round products, which represent 54% of total sales, fell 33%, while seasonal products, representing 29% of total revenue, fell by nearly 40%.

The company said it was confident this decision would allow it to capitalize on growth opportunities within the powersports industry and improve its margin profile.

BRP expects this process to be completed in the first quarter of fiscal 2026, and confirmed it doesn't anticipate any effects on fiscal 2025 guidance.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

October 17, 2024 07:22 ET (11:22 GMT)

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