Dorel Reports Second Quarter 2022 ResultsMontreal, Quebec -
- Dorel Juvenile organic revenue1 increases 7.9%
- Strength of U.S. dollar dramatically reduces earnings
- Shift in consumer spending away from furniture reduces Dorel Home revenue
Montréal, August 8, 2022 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2022.
Second quarter revenue was US$427.8 million, compared to US$447.6 million, down 4.4% from the same period a year ago. Reported net loss from continuing operations was US$13.6 million or US$0.42 per diluted share, compared to US$1.4 million or US$0.04 per diluted share last year. Adjusted net loss1 from continuing operations was US$11.6 million or US$0.36 per diluted share, compared to US$0.6 million or US$0.02 per diluted share last year.
Revenue for the six months was US$855.9 million, compared to US$886.2 million, down 3.4% from prior year. Reported net loss from continuing operations was US$40.8 million or US$1.25 per diluted share, compared to US$14.2 million or US$0.44 per diluted share a year ago. First half adjusted net loss1 from continuing operations was US$36.5 million or US$1.12 per diluted share, compared to US$4.0 million or US$0.12 per diluted share last year.
“Both of our segments had challenges, but for reasons unique to each. Dorel Juvenile second quarter revenue was the strongest since 2019 with gains in market share in its major markets. Excellent performance in the Americas more than offset declines in Europe where consumer spending is being impacted by high inflation and concerns related to the war in Ukraine. We are pleased that we are either holding or growing market share and are receiving positive reaction to newly launched juvenile products. The most significant issue in Juvenile was the surging U.S. dollar which significantly reduced earnings. At Dorel Home the supply chain backlog cleared, thus we received a significant amount of inventory in the quarter. At the same time there was a drop in consumer demand and orders as our retail partners also dealt with higher in-stock levels. This impacted earnings not only because of lower sales, but also higher operating costs. Both segments are carrying excess inventory due to the easing of the supply chain backlog and now we are focused on right-sizing our inventory levels across the balance of the year,” stated Dorel President & CEO, 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.