• Dorel Juvenile reports strong results with significant revenue growth
  • Dorel Home underperforms as the furniture industry remains difficult
MONTRÉAL, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today announced its financial results for the third quarter and nine months ended September 30, 2024.

Third quarter revenue was US$354.2 million, compared to US$359.7 million, down 1.5% from the same period a year ago. Reported net loss was US$21.9 million or US$0.67 per diluted share, compared to US$10.4 million or US$0.32 per diluted share last year. Adjusted net loss1 for 2024 was US$20.2 million or US$0.62 per diluted share as compared to US$10.4 million or US$0.32 per diluted share last year.

Revenue for the nine months was US$1,053.4 million, compared to US$1,038.1 million, up 1.5% from the prior year. Reported net loss was US$99.0 million or US$3.04 per diluted share, compared to US$58.6 million or US$1.80 per diluted share a year ago. Adjusted net loss1 for the first nine months of 2024 was US$50.7 million or US$1.56 per diluted share as compared to US$58.6 million or US$1.80 per diluted share a year ago.

"Dorel Juvenile earnings again exceeded last year's comparative quarter, driven by an organic revenue1 increase of over 9%. Impressively, this revenue growth was in all three of our regions; North America, Europe and International. We had several significant customers events in the quarter and the reception to our new product launches in all regions has been very strong, with key deliveries beginning in the quarter. Conversely, Dorel Home faced significant challenges, resulting in a 14% decline in revenue compared to the same period last year. Within our categories, positive momentum in indoor seating, TV stands and step stools were not enough to offset declines in other categories. We continue to drive sales with promotional pricing, which coupled with lower production efficiency meant our gross margins were lower than expected. We initiated substantial cost reduction initiatives in the quarter as we continue to right-size the business to current realities,” stated Dorel President & CEO, Martin Schwartz.

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1 This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section "Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.

Summary of Financial Information (unaudited) 
Third Quarters Ended September 30, 
All figures in thousands of US $, except per share amounts 
 20242023Change 
 $$% 
Revenue354,220 359,661 (1.5)% 
     
Net loss(21,900)(10,360)111.4% 
Per share - Basic(0.67)(0.32)109.4% 
Per share - Diluted(0.67)(0.32)109.4% 
     
Adjusted net loss (1)(20,206)(10,360)95.0% 
Per share - Diluted (1)(0.62)(0.32)93.8% 
Number of shares outstanding -    
Basic weighted average32,583,148 32,540,167  
Diluted weighted average32,583,148 32,540,167  
     
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section "Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
     
     
Summary of Financial Information (unaudited) 
Nine Months Ended September 30, 
All figures in thousands of US $, except per share amounts 
 20242023Change 
 $$% 
Revenue1,053,369 1,038,069 1.5% 
     
Net loss(98,950)(58,593)68.9% 
Per share - Basic(3.04)(1.80)68.9% 
Per share - Diluted(3.04)(1.80)68.9% 
     
Adjusted net loss (1)(50,658)(58,593)(13.5)% 
Per share - Diluted (1)(1.56)(1.80)(13.3)% 
Number of shares outstanding -    
Basic weighted average32,565,816 32,538,473  
Diluted weighted average32,565,816 32,538,473  
     
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section "Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.

Dorel Juvenile       
        
All figures in thousands of US $       
Third Quarters Ended September 30 (unaudited) 
 2024

2023

Change 
 $ % of rev.$% of rev.% 
Revenue222,098  205,957  7.8% 
        
Gross profit62,761 28.3%55,024 26.7%14.1% 
Operating profit7,192  3,186  125.7% 
        
Adjusted operating profit (1)7,940  3,186  149.2% 
        
        
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section "Definition and reconciliation of non-GAAP financial ratios and measures” in this press release. 
        
        
All figures in thousands of US $       
Nine Months Ended September 30 (unaudited) 
 2024

2023Change 
 $ % of rev.$% of rev.% 
Revenue651,222  617,743  5.4% 
        
Gross profit180,885 27.8%154,753 25.1%16.9% 
Operating profit (loss)14,012  (4,888) n.m. 
        
Adjusted operating profit (loss) (1)15,937  (4,888) n.m. 
        
        
n.m. = not meaningful
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section "Definition and reconciliation of non-GAAP financial ratios and measures” in this press release. 
 
For the third quarter of 2024, Dorel Juvenile reported revenue of US$222.1 million, marking a 7.8% increase compared to the same period last year. Excluding the impact of foreign exchange rate fluctuations year over year, organic revenue1 growth was 9.2%. This growth was driven by strong performances in the key markets of Brazil, the United States and Europe. The trends of the first half continued in terms of brand and product mix, but from a channel perspective e-commerce was the principal driver of the increase after a lower-than-expected start to the year.

Reported operating profit for the quarter was US$7.2 million compared to US$3.2 million the prior year and adjusted operating profit1 for the quarter was US$7.9 million, a US$4.7 million improvement over 2023. Gross margins were helped by a slightly weaker U.S. dollar and lower input costs versus the prior year, which more than offset higher supply chain costs in 2024. This resulted in a 160 basis point increase in gross margins. As anticipated, contrary to the first half of the year, Europe was the principal contributor to the earnings improvement as its new products began to ship in more meaningful quantities, a trend that is expected to continue for the balance of the year.

 
Dorel Home      
       
All figures in thousands of US $      
Third Quarters Ended September 30 (unaudited) 
 2024

2023

Change  
 $% of rev.$% of rev.% 
Revenue132,122  153,704  (14.0)% 
       
Gross profit2,809 2.1%10,971 7.1%(74.4)% 
Operating loss(13,177) (3,562) 269.9% 
       
Adjusted gross profit (1)3,547 2.7%10,971 7.1%(67.7)% 
Adjusted operating loss (1) (12,039 Advertisement

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