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Dorel Industries has reported its fourth quarter and 2021 year-end results, with Dorel Sports seeing fourth quarter revenue increase to $280.7 million, an increase of $15.3 million, or 5.8%, from last year.
Full year revenue was $1.2 billion, up $127.2 million or 12.2% from last year. Fourth quarter operating profit was $2.3 million, compared with $1.9 million last year. For the year, operating profit increased to $98.9 million compared to $52.3 million in 2020.
Dorel Industries completed the sale of its bicycle segment Dorel Sports to Dutch mobility group Pon Holdings in January this year. At closing, Dorel said it received net proceeds from the sale of approximately $735 million, which it will use for payment of a special dividend of $12 per share. The transaction consisted of the sale by Dorel of 100% of the shares of its indirect wholly-owned subsidiary companies, comprising Dorel Sports as well as certain related assets.
The sale of Dorel Sports was the culmination of years of developing the business, making it a highly attractive acquisition target, said the company.
Fourth quarter revenue from Dorel Industries’ continuing operations was $435.3 million, down 0.9% from $439 million a year ago. Revenue for the full year from continuing operations was $1.8 billion, up 2.4% from $1.7 billion the previous year.
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Dorel CEO and president, Martin Schwartz, said: “The fourth quarter was a difficult one as continuing global supply chain constraints and related higher costs for products, services and commodities pressured margins, reducing earnings at both Dorel Home and Dorel Juvenile. Demand was strong at many of our divisions; however, frustratingly, like many companies, we were unable to secure the necessary goods or parts to fully satisfy consumer requirements. While these external forces are beyond our control, internally we are building for the future by investing to strengthen operations and lessen our traditional reliance on imports.
“Early in January, we announced the use of the net proceeds from the sale of Dorel Sports. We rewarded shareholders in a meaningful way and significantly strengthened our balance sheet by reducing indebtedness. This has placed Dorel in a strong financial position and provides the ability to navigate current challenges and solidify our businesses to maximize opportunities in the longer term.”
