Brunswick Corporation reports Q4, full 2023 results | Boating Industry
Brunswick Corporation recently reported full-year and fourth quarter results for 2023.
For the fourth quarter of 2023, Brunswick reported consolidated net sales of $1,361.9 million, down
from a record fourth quarter in 2022 of $1,582.7 million.
“Strong cash generation, high-horsepower outboard market share gains, and steady operating
performance in the fourth quarter helped close out a successful 2023 in which Brunswick delivered
the second highest sales and adjusted EPS in Company history,” said David Foulkes, Brunswick
Chief Executive Officer. “Despite the challenging macroeconomic backdrop leading to some
consumer and channel caution, resilient demand for our products and services, especially across our
premium brands, together with continued cost containment and robust capital strategy execution,
allowed us to deliver strong earnings and sector-leading shareholder returns, again demonstrating
the robustness of our portfolio. Further, focused efforts to control inventory levels and spending
enabled exceptional free cash flow conversion of 143% in the second half of the year, even while we
continued to invest in new products, technologies and facilities to secure future growth.”
Q4 results by segment
The company’s propulsion segment reported a 12% decrease in sales. Engine Parts and Accessories segment reported a 1% decrease in sales with the products business growing 3% over prior year and the distribution business only slightly declining as retailer stocking in the marine channel continued to recover.
The Navico Group segment reported a 17% decrease in sales as the business experienced softer
marine OEM orders and the continued weak RV manufacturing environment in the quarter.
Brunswick’s boat segment reported a 22% decrease in sales resulting from softer wholesale orders, as
dealers continue to manage pipeline levels, coupled with higher levels of selective discounting, which
offset favorable mix and the impact of pricing actions taken earlier in the year. Freedom Boat Club,
which is part of the company’s Business Acceleration division, delivered another strong quarter, contributing approximately 8% of sales to the segment.
“2024 has the potential to be a year of steadily easing financial conditions and while we enter the
year with a cautious outlook, particularly in the first quarter, we have already launched more than
fifteen new products across our businesses and we remain extremely focused on delivering steady
free cash flow and resilient EPS, resulting in continued strong shareholder returns. Our disciplined
pipeline management, strong operational performance and continued investments in new products
and growth, coupled with prudent cost containment actions, strong free cash flow generation, and a
thoughtful capital strategy, provide the necessary controllable levers in this uncertain consumer and
business environment. We are extremely pleased with the enormous excitement generated by
Brunswick’s presence at the Consumer Electronics Show in early January, where we presented our
full portfolio of both already commercialized and upcoming new ACES products and technologies,
and at the early-season boat shows including the positive momentum coming out of the Dusseldorf,
Toronto and Minneapolis Boat Shows, all of which positions us well entering 2024. In
addition, our Board of Directors increased our share repurchase authorization earlier this week and
we now have over $500 million approved for repurchases, which we plan to systematically deploy
consistent with our capital strategy,” said Foulkes.
The full Q4 and FY23 results can be found on the Brunswick Corporation Investor Relations website.
Source: https://boatingindustry.com/news/2024/02/01/brunswick-corporation-reports-q4-full-2023-results/
