Dorel Reports Fourth Quarter and 2022 Year-End ResultsMontreal, Quebec -
- Lower U.S. sales the main cause of lower earnings in both segments
- Dorel Juvenile revenues increase in other markets
- Cost environment continuing to improve
Montréal, March 13, 2023 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and year ended December 30, 2022.
Fourth quarter revenue from continuing operations was US$340.3 million, down 21.8%, from US$435.3 million a year ago. Reported net loss from continuing operations for the quarter was US$41.4 million or US$1.27 per diluted share compared to US$29.6 million or US$0.91 per diluted share a year ago. Adjusted net loss from continuing operations was US$39.8 million or US$1.22 per diluted share compared to US$12.0 million or US$0.37 per diluted share in the fourth quarter a year ago.
Revenue for the full year from continuing operations was US$1.57 billion, down 10.7%, from US$1.76 billion the previous year. Reported net loss from continuing operations was US$118.9 million or US$3.65 per diluted share, compared to US$111.8 million or US$3.44 per diluted share the previous year. Adjusted net loss1 from continuing operations for the year was US$111.0 million or US$3.41 per diluted share, compared to US$82.7 million or US$2.54 per diluted share in 2021.
“Fourth quarter performance was disappointing. Dorel Home sales volumes decreased markedly as our major retail partners continued to reduce ordering overall. In addition, excess inventory across the industry means we, as well as our competition, are discounting prices to move higher cost inventory, further pressuring profitability. This combination of less favourable pricing and significantly reduced overhead absorption at our facilities due to the lower sales, severely reduced earnings. Substantial cost cutting and inventory reductions have been implemented which will start to help earnings going forward. The picture is brighter at Dorel Juvenile where things are moving in the right direction. However, major U.S. retail customers continued to curtail orders, and therefore segment sales declined despite a generally positive point-of-sale performance. While the quarter was soft, Juvenile is in a recovery mode with positive signs, particularly in Europe. Several new products were launched during the quarter, and we have gained market share in a number of key juvenile categories. Inflation and potential recession pressures continue to weigh on the economy, however Dorel’s opening price point products have traditionally proved popular with consumers during these periods,” stated Dorel CEO & President, Martin Schwartz.
1This 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.