Dorel's results mixed, but eyes improved margins

Dorel Industries' Ameriwood Home brand's mission is to improve the lives of our customers with home furnishings that function well and are affordable.

Photo By Dorel Industries

MONTREAL — Dorel Industries Inc.'s first quarter, which ended March 31, 2024, found revenues up year over year, and losses down year over year. 

Revenue, the company reported, was $351.1 million in U.S. dollars, up 5.4%, from $333.2 million a year ago. Net loss for the first quarter was $17.6 million compared with $31.5 million last year. Adjusted net loss was $16.9 million versus $31.5 million a year ago. Dorel is an FDMC300 listed company, ranking #26 on the list with sales of $558.97 million (FY-IR). 

Dorel President & CEO, Martin Schwartz, said “Dorel Juvenile posted significant gains year-over-year, with adjusted operating profit improving by $10.1 million versus last year’s first quarter. Internal optimism is high as the segment is capitalizing on its introduction of a diverse selection of exciting new products. Both our retail partners and consumers have reacted well to the new offerings, with in-store sales rebounding nicely, driving growth through market share gains. 

"Through a combination of higher sales and by further reducing Juvenile costs we are more comfortable than ever that this business will continue its year-over-year earnings improvement. Dorel Home also made substantial progress during the first quarter, narrowing its adjusted operating loss by $10.5 million. 

"This was despite on-going softness in the furniture market, where industry sales continue to lag all other consumer product categories. The previously announced plan to simplify and combine certain key areas of the Home segment has made the combined operations more effective and cost-efficient. Savings are expected to be $4.0 million annually. Home is making all the right moves with new customers and new product listings growing. The meaningful benefits will come once industry volumes increase to more traditional levels."

 

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Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).