Dorel News

Dorel Reports Solid Second Quarter Results

Montreal, Quebec -
  • Continued strong bike demand propels Dorel Sports to its ninth consecutive quarter of revenue growth
  • Dorel Juvenile maintains improvement trend with revenue and adjusted operating profit gains
  • Dorel Home impacted by substantial freight costs and COVID- related supplier closures

Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2021. Second quarter revenue was US$765.0 million, compared to US$724.0 million, up 5.7% from the same period a year ago. Reported net income was US$22.2 million or US$0.67 per diluted share, compared to US$11.1 million or US$0.34 per diluted share last year. Adjusted net income1 was US$23.0 million or US$0.70 per diluted share, compared to US$15.6 million or US$0.48 per diluted share last year.

Revenue for the six months was US$1.5 billion compared to US$1.3 billion, up 13.0% from prior year. Reported net income was US$25.0 million or US$0.76 per diluted share, compared to a reported net loss of US$46.7 million or US$1.44 per diluted share a year ago. First half adjusted net income1 rose sharply to US$35.2 million or US$1.07 per diluted share, compared to US$2.0 million or US$0.06 per diluted share last year.

“Given the continuing chaotic supply chain environment, we are very pleased with the second quarter performance of our businesses. We are reporting substantially improved earnings while dealing with record increases in container freight rates and higher product costs in many categories. Demand for our products remained robust, but we were not able to fully satisfy consumer needs due to inventory shortages from a lack of ocean container availability. Dorel Sports had a remarkable quarter, again achieving record sales and earnings. Demand for bikes shows no signs of slowing and Cannondale’s models remain extremely popular in all markets. There has been continued improvement at Dorel Juvenile with gains in all geographies as consumers responded well to new products. Europe’s progress was limited only by COVID-related issues. Dorel Home revenue was significantly reduced as container issues were compounded by COVID shutdowns at suppliers in Vietnam and Malaysia. The segment still promises to be a solid performer as these conditions ease,” commented Dorel President & CEO, Martin Schwartz.

[1] This is a non-GAAP financial measure. Please refer to the “Non-GAAP financial measures” section at the end of this press release.