MONTREAL -- BRP Inc. said Thursday it will invest $300 million over five years in a plan to offer electric versions of its recreational vehicles in each of its product lines by the end of 2026.
"We have always said electrification was not a question of 'if' but a question of 'when,"' BRP chief executive Jose Boisjoli said in a statement.
"Today, we're very excited to unveil more details of our plan to deliver market-shaping products that will enhance the consumer experience by offering new electric options."
The announcement came as the maker of Ski-Doos and Sea-Doos reported its fourth-quarter profit more than doubled compared with a year earlier. Since the start of the pandemic, BRP's stock has more than quadrupled as demand for its recreational vehicles soars.
Boisjoli said the increase in sales was driven in large part by new customers, comprising about 30 per cent of buyers in the most recent fiscal year. BRP saw growth across all of its vehicle categories, including an approximately 90 per cent year-over-year increase in personal watercraft sales in the fourth quarter.
The company hasn't been able to meet demand, struggling with inventory constraints amid the surge in sales. Looking ahead to next year, BRP plans to invest in adding production capacity for its recreational vehicles.
As part of the push into electric vehicles, BRP will expand its Rotax electric power unit development infrastructure in Austria and establish an electric vehicle development centre in its hometown of Valcourt, Que.
BRP expects to introduce the first product to the market within the next two years, followed by a rapid rollout across all of its product lines. Asked Thursday about whether the new line would compete with its combustion-power vehicles, Boisjoli said the expansion was meant to attract a new set of customers.
BRP does not have an immediate plan for developing charging infrastructure for the new vehicles, which can be charged in any car charging station, Boisjoli said. However, it could be difficult to develop that infrastructure everywhere in the world, Boisjoli said.
BRP reported Thursday a profit attributable to shareholders of $264.3 million or $2.95 per diluted share for the three months ended Jan. 31, up from $118.4 million or $1.32 per diluted share a year earlier.
Revenue in what was the fourth quarter of its 2021 financial year totalled $1.82 billion, up from $1.62 billion. On a normalized basis, BRP says it earned $1.82 per diluted share in its most recent quarter, up from $1.12 per diluted share a year earlier.
In its outlook for its 2022 financial year, BRP said it expects its full-year normalized earnings of $7.25 to $8 per diluted share, an increase of 35 to 48 per cent. Full-year revenue is expected to grow 25 to 30 per cent.
Asked on the earnings call whether sales would slow down once travel resumed after the pandemic and fewer people opted for "staycations," Boisjoli said he expected demand to stay high for the time being.
"It will take some time to taper down," Boisjoli said. "That's why we like the challenge to convert those new entrants to our industry."
This report by The Canadian Press was first published March 25, 2021
