Dorel Sports, which is now listed as a discontinued operation in the accounts of Dorel Industries following its recent $810 million sale to the Pon Group, saw its net profit improve by 21.8 percent to $2.29 million in the fourth quarter ended Dec. 30, according to its parent company, although the gross margin went down by two percentage points to 18.8 percent. Revenues rose by 5.8 percent to $280.7 million for the former subsidiary of the Montreal-based group, which counts numerous bike brands including Caloi, Cannondale, GT, HironHorse, Mongoose and Schwinn.
Dorel Sports booked a gain of 39.2 percent in net income to $98.9 million on 12.2 percent higher revenues of $1,172 million for the full financial year. The gross margin advanced by 0.2 percentage points to 22.2 percent.
The group is now left with two units, Dorel Home and Dorel Juvenile. Global supply chain constraints weighed down on Dorel Industries’ continuing operations, leading to net losses of $29.6 percent for the fourth quarter and $111.8 million for the year. On an annual basis, Dorel Home generated a sharply reduced gross margin of 11.7 percent on 2.1 percent lower sales of $914.3 million. At Dorel Juvenile, sales went up by 7.8 percent to $844.4 million, but the gross margin declined to 22.2 percent from 26.2 percent in the prior year.
