Growth in sales and operating margin
Brunswick Group has released its 4th quarter and fiscal year 2022 numbers. These show a nice 16.5% increase in sales, reaching $6.8 billion. The operating margin reached 15.4%, with an operating profit of $1.05 billion.
The fourth quarter shows more moderate sales growth of 10.6% over 2021, but operating profits are up sharply by 29.4% to $202.2 million.
Brunswick CEO David Foulkes highlights a historic annual margin level, for the first time above 10%.
Mercury and Boat Division drive business
Analyzing the figures for the various divisions, the executive highlights the performance of the propulsion and boat brands. Mercury is improving its sales and operating margin compared with 2021, notably gaining 10 points of market share in engines over 300 horsepower in the United States. The investment in the Fond du Lac plant should enable the company to better serve the international and repowering markets.
On the boats side, operating margins reached 10.2%, while meeting the needs of dealers. Only the parts and accessories division posted a slight decline, with sales impacted by exchange rates. Excluding this effect, revenues were down 1%. Brunswick says it is already reaping the first benefits of the reorganization linked to the creation of the Navico Group.
Caution for 2023
Brunswick's management is maintaining its growth forecast, while being cautious in 2023. "Despite an uncertain macroeconomic backdrop, we remain extremely focused on our 2025 strategic plan and are confident that it will continue to deliver healthy returns to our investors in 2023. Our strong operating performance and continued investments in new products and growth, combined with a focus on cost control, as well as a prudent but flexible capital strategy, provide the necessary levers of control to drive growth, even in uncertain business and customer environments."
