BRP Inc (NASDAQ:DOOO) Q3 2021 Earnings Conference Call - Final Transcript
Nov 25, 2020 • 09:00 am ET
Good morning, ladies and gentlemen, and welcome to the BRP's Q3 FY 2021 Earnings Call.
I would now like to turn the meeting over to Mr. Philippe Deschenes. Please go ahead, Mr. Deschenes.
Thank you, Mal. Good morning and welcome to BRP's conference call for the third quarter of fiscal year '21. Joining me this morning are Jose Boisjoli, President and Chief Executive Officer; and Sebastien Martel, Chief Financial Officer.
Before we move to the prepared remarks, I would like to remind everyone that certain forward-looking statements will be made during the call that are subject to a number of risk and uncertainty. I invite you to read BRP's MD&A for a listing of these. Also, during the call, reference will be made to supporting slides and you will find the presentation on our website at brp.com under the Investor Relations section.
So, with that, I'll turn the call over to Jose.
Thank you, Philippe. Good morning, everyone, and thank you for joining us. As you know, fiscal year '21 has been a very volatile year for us. Once the temporary shutdown were lift, we're able to resume production at full capacity, has taken special measure to manage our supply chain and have been especially vigilant about protecting our people. Given the increased popularity of our product, we feel fortunate to be where we are during this time of international instability. It has been an exceptional period and it's not over yet.
I would like to start by thanking the remarkable dedication of our people, dealers and suppliers who have risen to the occasion and allow us to continue to deliver incredible results while still ensuring the health and safety of our team everywhere around the world. As you are aware, interest in the Powersports sector remains very high and our strong line-up continue to allow us to outpace the industry worldwide. Although we faced some production challenges, we were able to manage them and we are delivering units in line with our plan.
Let's turn to Slide 4 for the financial highlights of this third quarter. Our revenue for the quarter were up 2%, driven by Year-Round Products, partially offset by lower wholesales of Seasonal Products due to a change in timing of Personal Watercraft production. Our gross profit margin came in much better than expected at 29.1% as the continued strong consumer demand allow us to reduce our promotional activity and drove a richer product mix than planned.
Our normalized EBITDA ended the quarter up 30% to CAD349 million, resulting in a normalized earnings per share of CAD2.13, up 41% over last year. We expect this positive trend to continue over the next quarter and beyond. And based on this, we are increasing our year-end guidance with revenue now expected to be down 1% to 5%, normalized EPS up 31% to 37% to a range of CAD5 to CAD5.25.
As I mentioned earlier, the demand for our product remain exceptionally strong in the quarter leading to our North American