BRP Inc. (DOOO): history, ownership, mission, how it works & makes money

A Brief History of BRP Inc. (DOOO)

Founding and Early Years

BRP Inc., known for its innovative recreational vehicles, traces its roots back to 1937 when the company was founded as a division of Bombardier. Originally focused on snowmobiles, BRP introduced its first snowmobile, the Ski-Doo, in 1959, which quickly gained popularity.

Expansion and Product Diversification

By the late 1970s, BRP had expanded its product range to include other recreational vehicles. The introduction of the Sea-Doo personal watercraft in 1968 marked a significant milestone. In 2003, BRP launched the Can-Am brand for on-road vehicles, further diversifying its portfolio.

Financial Growth and Public Offering

In 2013, BRP initiated its initial public offering, trading on the Toronto Stock Exchange under the symbol DOO. The IPO raised approximately $240 million, valuing the company around $1.8 billion. As of FY 2021, BRP reported revenues of $5.2 billion.

Recent Developments and Performance Metrics

In 2021, BRP experienced a 19% increase in net sales compared to the previous year, driven by increased demand across all product lines. The net income for FY 2021 reached $746 million, representing a 30% increase year-over-year.

Product Line Overview

Global Reach and Manufacturing Facilities

BRP has a robust global presence, with manufacturing facilities located in the following regions:

• Canada
• United States
• Mexico
• Austria
• Finland

Recent Financial Highlights

Market Capitalization and Stock Performance

As of October 2023, BRP's market capitalization is estimated at $9.3 billion. The company shares have shown significant growth since its IPO. The stock price was approximately $118 per share in October 2023, reflecting a gain of over 100% since the IPO.

Sustainability Initiatives

BRP has committed to reducing its environmental footprint, aiming for a 25% reduction in greenhouse gas emissions by 2025. Investments in electric vehicle technology are underway, with plans for electric models in the coming years.

A Who Owns BRP Inc. (DOOO)

Ownership Structure

BRP Inc. (DOOO) is a publicly traded company listed on the Toronto Stock Exchange (TSX) and the NASDAQ. The ownership structure is characterized by both institutional and retail investors, with significant stakes held by major shareholders.

Major Shareholders

Stock Performance

As of October 2023, the market capitalization of BRP Inc. is approximately $7.5 billion. The stock price on October 6, 2023, was $92.15, reflecting a year-to-date increase of approximately 15%.

Recent Financial Performance

Institutional Ownership

Institutional investors hold a significant portion of BRP Inc.'s shares, constituting around 75% of the total shares outstanding. This indicates a high level of confidence from major financial institutions.

Investor Relations

• BRP Inc. has a strong track record of engaging with investors through regular earnings calls and meetings.
• The company provides comprehensive financial reports and updates on its performance.
• Shareholder meetings are held annually, offering insights into governance and strategic direction.

Future Outlook

Analysts project continued growth for BRP Inc., with an expected revenue growth rate of 10% annually over the next five years. The company's strategic initiatives aim to expand its product offerings and market reach.

BRP Inc. (DOOO) Mission Statement

Company Overview

BRP Inc. (DOOO) is a leading manufacturer of recreational vehicles and marine engines. Established in 1937, the company is headquartered in Valcourt, Quebec, Canada, and specializes in vehicles such as Ski-Doo snowmobiles, Sea-Doo personal watercraft, and Can-Am off-road vehicles.

Mission Statement

The mission of BRP is to create innovative and high-quality recreational products that deliver a unique experience for its customers while maintaining a commitment to sustainability and superior performance.

Key Components of the Mission Statement

• Innovation: Focused on continuous innovation in product design and manufacturing processes.
• Quality: Commitment to high standards of quality across all products.
• Customer Experience: Aimed at providing exceptional experiences for consumers.
• Sustainability: Dedicated to reducing environmental impact through eco-friendly practices.

Financial Performance

For the fiscal year ending January 31, 2023, BRP reported the following financial results:

Market Position

As of Q2 2023, BRP holds a significant market share in the recreational vehicle sector:

Research and Development Investment

BRP invests significantly in research and development to align with its mission statement. In 2023, the company allocated:

Sustainability Initiatives

BRP's commitment to sustainability is evident in its initiatives, including:

• Reduction of greenhouse gas emissions by 20% by 2028.
• Increase the use of sustainable materials in products.
• Implement sustainable manufacturing practices.

Conclusion on Mission Statement Impact

The mission statement of BRP Inc. guides its strategic direction, ensuring innovation, quality, and customer satisfaction while addressing environmental concerns. The company's robust financial performance reflects its successful execution of this mission.

How BRP Inc. (DOOO) Works

Business Overview

BRP Inc. (DOOO) is a leading manufacturer of recreational vehicles and engines, mainly known for its Sea-Doo personal watercraft, Ski-Doo snowmobiles, and Can-Am off-road vehicles.

Market Segments

• Marine: This segment includes products like Sea-Doo watercraft and accessories.
• Snowmobiles: The Ski-Doo line is a significant contributor to winter sports and recreation.
• Off-Road Vehicles: The Can-Am series encompasses ATVs and side-by-side vehicles.
• Powersports Engines: BRP manufactures engines for various off-road, on-road vehicles, and marine applications.

Financial Performance

For the fiscal year ending January 31, 2023, BRP reported revenue of CAD 6.113 billion, reflecting a year-over-year growth of approximately 20%.

The gross profit for the same period was CAD 1.367 billion, resulting in a gross margin of about 22.4%.

Recent Financial Highlights

Supply Chain and Manufacturing

BRP operates through various manufacturing facilities across North America, Europe, and Asia. The company emphasizes lean manufacturing and just-in-time inventory systems to enhance efficiency.

As of 2023, the company has approximately 9,100 employees globally.

Research and Development

BRP continues to invest heavily in R&D, allocating about 4.5% of its revenue, approximately CAD 275 million, towards innovation and product development in the fiscal year 2023.

Sales Distribution

BRP's products are distributed through a network of over 4,200 dealers across the globe.

Environmental Initiatives

BRP is committed to sustainability, pledging to reduce greenhouse gas emissions by 50% by 2030. The company has initiated several eco-friendly programs.

Future Outlook

The company aims to achieve a revenue target of CAD 7 billion by fiscal year 2025, driven by new product launches and market expansion.

How BRP Inc. (DOOO) Makes Money

Revenue Sources

BRP Inc. generates revenue through various segments primarily focused on motorized recreational vehicles. In 2022, the total revenue reported by BRP was approximately $7.2 billion.

Product Segments

The company's core products include:

• Outboard Engines
• Motorcycles
• All-Terrain Vehicles (ATVs)
• Snowmobiles
• Personal Watercraft (PWC)

Revenue Breakdown by Segment

Geographical Revenue Distribution

BRP's revenue is also diversified across several geographical regions:

Service and Parts Sales

Additionally, BRP earns revenue from aftermarket parts and services which represented approximately 20% of total sales in 2022.

Financial Performance Indicators

As of the fiscal year ending January 2023, BRP reported the following financial metrics:

Market Positioning

BRP is strategically positioned in the recreational vehicle market, holding significant market share in various segments. The company competes against major brands including Polaris and Yamaha in North America.

Future Growth Strategies

BRP plans to expand its product offerings and enhance its sustainability initiatives to cater to growing consumer demand. Investments in electrification and advanced technologies are pivotal in BRP’s strategic roadmap.