Dorel News

Dorel Reports Second Quarter 2023 Results

Montreal, Quebec -
  • Dorel Juvenile turns profitable, led by strong European results; innovative new products gaining momentum
  • Dorel Home’s results improve for third consecutive quarter 

Montréal, August 11, 2023 Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2023.  

Second quarter revenue was US$345.2 million, compared to US$427.8 million, down 19.3% from the same period a year ago. Reported and adjusted net loss1 from continuing operations was US$16.7 million or US$0.51 per diluted share, compared to US$13.6 million or US$0.42 per diluted share last year. Adjusted net loss from continuing operations last year was US$11.6 million or US$0.36 per diluted share last year

Revenue for the six months was US$678.4 million, compared to US$855.9 million, down 20.7% from the prior year. Reported and adjusted net loss1 from continuing operations was US$48.2 million or US$1.48 per diluted share, compared to US$40.8 million or US$1.25 per diluted share a year ago. Adjusted net loss1 from continuing operations for the six months in 2022 was US$36.5 million or US$1.12 per diluted share last year.

“Dorel Juvenile and Dorel Home’s second quarter performances both showed encouraging signs of improvement, with combined adjusted operating losses improving by approximately US$13.0 million compared to the first quarter of the year. Despite a slow start, our Juvenile business posted its first profitable quarter since the third quarter of 2021. This was led by Europe where new product launches, in particular the 360 Pro Family, drove a strong recovery. Despite some challenges in the U.S., we are gaining share in that market. While reporting an operating loss, Dorel Home recorded sequential improvement for the third consecutive quarter. There are clear indications that sales volumes are beginning to improve. The trend is positive as retailers’ glut of high-cost inventory is steadily being depleted. A general softness in the demand for furniture muted Dorel Home’s second quarter. However, July orders were 30% higher than the first half average, evidence that we are seeing light at the end of the tunnel,” commented 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.