José Boisjoli: Yes. We — definitely, if you talk to a dealer that is Polaris and BRP, and there is 40% of our dealers that are Polaris and BRP, then those dealers, obviously right now are overwhelmed because in the snowmobile PDI, I mean delivering all those units in a short period of time is always a heavy period. They have to retrofit some of our deals, but also they have all those recalls from Polaris. Then for those 40% of the BRP dealer that are also Polaris, for sure, it’s a difficult fall. We’re lucky in the sense that 60% of our dealers are not Polaris, then those have an easier fall than the first one. And there is definitely, I think, Benoit an advantage in the dealership that are not — that are only BRP, not Polaris, but it’s very difficult to quantify.
Sébastien Martel: And Benoit, if you were to take the total inventory and just remove personal watercraft and three-wheeled, the inventory would be up 120%.
Benoit Poirier: Okay, perfect. That’s great color. And for fiscal year 2024, you gave great color about how should we be looking at the revenue, the pluses and the minuses. What about the margin side, Seb, could you maybe provide some color about the key elements that will impact the margin going into fiscal year 2024 and whether a 17% is still something that should hold up?
Sébastien Martel: Well, absolutely. Yes, the 17% is something that should still hold up. And if you look at BRP, there structurally, we’re a very different company than what we were just a few years ago. And there were a few things that obviously are helping us. So one, our modularity approach that we’ve implemented over the last several years is obviously paying off benefits for sustained gross margin. Two, we have a better asset utilization as well with the volume growth that we have. Three, our footprint is, as you know, the growth that we’ve invested in Mexico and so very cost efficient. So structurally, that brings good margin improvement. And from a product mix point of view, our side-by-side business has grown a lot in the last few years.
Just a few years ago, side-by-side represented 30% of our revenues. This year it will be just almost 40% of our revenue coming from side-by-side in the parts business that goes with it. And that business drives better margin than the average portfolio of products of BRP. And so that obviously is helping to sustain strong gross margin. And then if you look at fiscal year 2023, we’ve obviously had a lot of headwinds from inefficiencies, from retrofits, from doing spot buy from microchips, from air freighting components from suppliers to our assembly plants just to get the units out the door. We probably have a 250 basis point headwind this year, just coming from those inefficiencies. Now not all of those will go away next year because the supply chain is still fragile in some pockets and logistics has not yet been reestablished completely, but we’ll certainly get some gains coming from better efficiency .So when I look at next year, I talked about the top line elements, a lot of optimism, but also from a cost efficiency point of view as well, there are some great opportunities.
Benoit Poirier: Okay. That’s great color. Thanks for the time.
Sébastien Martel: Thank you, Benoit.
Operator: Next question will be from Xian Siew at BNP Paribas. Please go ahead.
