Brunswick Corporation (NYSE:BC) Q4 2023 Earnings Call Transcript

Ryan Gwillim: Hey, Scott. Yeah. I mean, Repower actually had a really nice second half and probably will have a pretty good first half. We actually gained 500 basis points of Repower share in the year, which is pretty big. But still, our Repower share trails our overall U.S. share. So, there’s still room to run there. We don’t talk exacts on margins, but the retail dealer margin certainly is stronger than OEM, just based on volume. So that is definitely a positive on the operating margin side, but we don’t comment on exactly how much that is. But yeah, very good Repower, not only in the U.S., but internationally as well.

Scott Stember: Got it. That’s all for me. Thank you.

Dave Foulkes: Thank you.

Operator: At this time, we would like to turn the call back over to Dave for some concluding remarks.

Dave Foulkes: Thank you. Well, thank you all for joining us again and for the great questions. We really appreciate them. Despite the challenges, we again delivered a very strong year, the second best ever. You need to forget that, but we’re trying to make sure you don’t, which I think continues to demonstrate the resilience of our portfolio. Free cash flow generation was a particular highlight, I think, in the second half of the year and gives us additional flexibility as we go into 2024. As we noted a couple of times, OEM and dealer customers will likely continue to be cautious in their ordering through a portion of the first quarter. But we think we’ve equipped ourselves very well for the start of 2024. Pipelines are at appropriate levels.

We have a wealth of new products. We have great digital properties. We have a well thought out mix of incentives. And we’re also, as Ryan mentioned a couple of times, continuing to control costs. I would say that we prefer a year this year of increasing guidance, and so we’re looking, it’s exciting, I think, that we’re off to a good start with retail. Boat show, we didn’t talk much about, but boat shows sales are maybe single digits down versus last year, but improving as we go through the year. Mix is significantly up into kind of 15% to 20% kind of mix up versus last year, which is very encouraging. So we could talk about all of those things and introduce you to our new products at our Investor and Analyst event in Miami on Feb 14th and we look forward to seeing you all there.

Thank you.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.