Dorel Reports Fourth Quarter and 2024 Year-End Results

• Dorel Juvenile revenue increases on market share gains
• Dorel Home accelerates restructuring program to realign its business

MONTRÉAL, March 11, 2025 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and the year ended December 30, 2024.

Fourth quarter revenue was US$326.8 million, down 6.8%, from US$350.7 million a year ago. Reported net loss for the quarter was US$73.0 million or US$2.24 per diluted share compared to US$3.8 million or US$0.12 per diluted share a year ago. The reported net loss for the quarter includes total restructuring costs of US$14.1 million, and write-downs of deferred tax assets of US$36.5 million. Adjusted net loss¹ was US$59.2 million or US$1.82 per diluted share compared to an adjusted net income¹ of US$0.2 million or US$0.01 per diluted share for the fourth quarter a year ago. 

The adjusted operating loss¹ for the fourth quarter of 2024 was US$8.9 million, an increase from US$2.9 million in the previous year. A significant component of the shortfall in earnings was a US$7.5 million variation in earnings in the Juvenile segment caused by the stronger U.S. dollar in the last quarter of 2024. The Home segment adjusted operating loss¹ was slightly higher with both of these declines partially compensated by lower corporate costs.

Revenue for the full year was US$1.38 billion, down 0.6%, from US$1.39 billion the previous year. Reported net loss was US$172.0 million or US$5.28 per diluted share compared to US$62.4 million or US$1.92 per diluted share a year ago. The reported net loss for the full year includes total restructuring costs of US$17.4 million, an impairment loss on goodwill of US$45.3 million, and write-downs of deferred tax assets of US$36.5 million. Adjusted net loss¹ for the year was US$109.8 million or US$3.37 per diluted share, compared to US$58.4 million or US$1.79 per diluted share in 2023.

The adjusted operating loss¹ for 2024 was US$28.4 million, reflecting an improvement of US$19.3 million from the previous year. This enhancement is attributed to a stronger performance in the Juvenile segment and reduced corporate expenses, while the adjusted operating losses¹ from the Home segment remained consistent with the prior year.

"Dorel Juvenile has maintained its trajectory of year-over-year revenue growth this quarter, achieving a 2.2% organic revenue¹ increase. Notably, Europe achieved a revenue increase of approximately 18% in local currency. However, the strengthening U.S. dollar against almost all other major currencies negatively impacted revenue growth and earnings. Despite this challenge in the quarter, we continued to invest in marketing and sales initiatives to build momentum for 2025. Dorel Home revenues remain significantly lower than in previous years, and as previously announced on January 30, 2025, we are proactively adjusting our operational footprint to achieve profitability. Looking ahead, Dorel Home will focus on leveraging core competencies, strengthening retailer relationships, and driving growth with innovative, high-margin products,” stated Dorel President & CEO, Martin Schwartz.

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¹ This 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.

Dorel Juvenile's fourth-quarter revenue rose 0.4% to US$212.8 million compared to last year. Adjusted for foreign exchange rate variations, organic revenue¹ grew by 2.2%, led by strong sales in Europe, Brazil, Australia, and export markets. Europe saw double digit revenue growth stemming from car seats and strollers due to new product launches like the 360 Pro Family car seats and Oxford and Fame strollers. Full-year revenue increased by 4.1%, reaching US$864.1 million from US$829.8 million the previous year. The full-year organic revenue¹ increase was better than reported results at 5.3%.

The appreciation of the U.S. dollar affected earnings, resulting in lower-than-expected quarterly results. Compared to the previous year, the total impact in the quarter was an increase of approximately US$7.5 million in cost of sales. This led to reduced gross margins, with the adjusted gross margin¹ being 470 basis points lower than the fourth quarter of the previous year. Sales in North America were softer after a very strong third quarter which pulled earnings forward, resulting in lower earnings in the quarter compared to prior year. This and continued challenges in Chile accounted for most of the remaining decrease in earnings versus the prior year.

Fourth quarter operating profit was US$1.6 million, compared to US$11.3 million in the same period last year. Excluding restructuring costs, adjusted operating profit¹ was US$2.4 million, compared to US$12.9 million in the fourth quarter of the previous year. The decline in adjusted operating profit¹ is primarily due to the negative foreign exchange rate impact. Full-year operating profit was US$15.6 million compared to US$6.4 million in 2023. Adjusted operating profit¹ for the year was US$18.3 million, compared to US$8.0 million last year.