BRP Inc. (NASDAQ:DOOO) Q4 2023 Earnings Call Transcript

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Robin Farley : Great, thanks. Also questions on kind of some of your mentions of what competitors are doing with sales programs. Would you describe the types of programs out there as being just kind of typical what they were to pre-COVID or maybe even not quite that aggressive? I wonder if you could characterize this. And then also, are you seeing that from some of the newer entrants in the market, or is it really more the sort of more entrenched OEMs maybe responding to some of the newer entrants from a market share intrusion perspective? Thanks.

Jose Boisjoli : Good morning, Robin. Obviously, it’s a very wide question. I would say, programs are not as aggressive as they were pre-COVID, but more than last year, obviously. And I would say it depends of the dealers and the OEM, but I would say it’s about maybe halfway to what they were pre-COVID. And we don’t see more program from some of the new OEMs that are more present in North America.

Robin Farley : So you’re saying you’re saying you’re not seeing it from the newer entrants? So I just want to make sure I understood.

Jose Boisjoli : No, we don’t seeing it.

Robin Farley : Okay, great. Thanks. And then just for my follow up question, can you just remind us on your side-by-side capacity, with Juárez 3 kind of what, how ramped up are you and what additional capacity you would have sort of by the end of the year, or any other new future planned additions, just kind of remind us of your capacity? Thanks.

Sebastien Martel : Yeah, under side by side, on Juárez 3, if you remember, Juárez 3 Phase 1 was having 60% more capacity. And Juárez 3 Phase 2 was another 50%. Basically compared to — with Juárez 2 and Juárez 3 together, we have doubled the capacity than we had with Juárez 2. And right now, it’s up and running.

Jose Boisjoli : And we’ve had twice the capacity growth for side-by-side Robin in the last several years since we’ve been more targeted on side-by-side. And every time we’ve added capacity, dealers have given us the support base. We’ve obviously gained market share. So this new capacity, obviously, coming online is another great opportunity to key role.

Robin Farley : And I knew that the capacity the facility has strong, but is it fair to say that you’re not you still have room to go in terms of actually utilizing all the capacity that is available in this new phase? Is that fair to say that that’s still kind of incremental?

Jose Boisjoli : Absolutely, we were probably running at fiscal ’23, with the supply chain constraints at 80% capacity. And the plan is here is to run now this — with this new capacity, probably running between 80% and 85%. So we’ll have more room to grow if the market shows there.

Robin Farley : Okay, great. Thank you.

Operator: Your next question comes from James Hardiman from Citigroup. Please go ahead.

Sean Wagner: Hi, this is Sean Wagner on for James Hardiman. I guess going back to sort of the market share things. Now that shipments in the powersports industry are a little more normalized across industry. How confident are you in your ability to protect, particularly those side-by-side share gains? And what’s the risk of competitors being more aggressive than they are even now on pricing and promotions to regain that lost share?

Jose Boisjoli : Yeah, first, the industry is still healthy. And we gained share with the strength of our product, obviously, that’s the basis but also with our momentum with the dealers. And we will continue to bring new products to the pipeline. We investing quite, we investing a lot in R&D and partially on side-by-side, then we are confident to continue to grow market share with our product innovation and the momentum that we have with the dealers, plus the capacity that we just had.

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