Dorel Sports, a division of Dorel Industries, registered revenues of $250.3 million for the third quarter ended on March 31, representing a 14.2 percent increase from the same quarter a year earlier, driven by strong performances at the Cycling Sports Group (CSG). Cannondale’s new line-up is driving CSG success, the company said.
Dorel Sports’ revenues grew by double digits for the first time in five years. Excluding foreign exchange rate fluctuations and the impact of the divestment of its performance apparel line of business, Sugoi, adjusted revenues increased by 15.7 percent. The operating profit was down to $6.0 million, from $7.0 million a year ago. Adjusted operating profit was $5.6 million as compared to $7.5 million last year. The operating profit was negatively impacted by problems at Pacific Cycle, which suffered from margin compression and key retailers delaying holiday pipeline shipments to the current fourth quarter, with related additional warehouse storage.
Sales in Europe were primarily driven by the e-bike category, which doubled revenues, thanks to the launch of e-mountain bikes such as the Moterra and Habit Neo. Caloi delivered strong double-digit revenue growth and increased volume due to success with Brazil’s Yellow Bike Sharing program and a better mix.
Meanwhile, Dorel Industries, which also includes the Dorel Juvenile and Dorel Home divisions, reported third quarter revenues of $685.7 million, up by 2.3% against last year’s first quarter, and a net loss of $4.3 million compared to a net income of $9.6 million last year. Adjusted net income was $2.4 million as compared to $11.0 million a year ago.
