Dorel Industries posted increased sales and also saw its net loss narrow in the first quarter of 2024 compared to last year.
The maker of children’s products and home furniture reported revenue of US$351.1 million, compared to US$333.2 million for the same period in 2023, an increase of 5.4%.
The Montreal company’s net loss amounted to US$17.6 million, or US$0.54 per diluted share, for the quarter ending March 31. This is down from US$31.5 million, or US$0.97 per diluted share, at the same time last year.
For its Juvenile Products division, Dorel generated an operating profit of US$0.5 million in the first quarter of 2024, compared to an operating loss of US$8.9 million last year.
Adjusted operating profit was US$1.1 million in the first quarter.
Revenue was US$212.7 million, up 6.3% from US$200.0 million the previous year.
“Internal optimism is high as the industry benefits from the introduction of a diverse selection of exciting new products,” commented Dorel President and CEO Martin Schwartz in a statement.
He adds that “retailers and consumers have responded well to these new offerings, with in-store sales rebounding well, driving growth through market share gains.”
For the Home division, the company also reports increased revenue for the first quarter. They amounted to US138.4 million, compared to US133.2 million for the same period in 2023.
It also saw a reduction in its operating loss from US13.9 million last year to US3.6 million for the first three months of 2024.
Mr. Schwartz noted that the division managed to reduce “its adjusted operating loss by US$10.5 million, despite continued weakness in the furniture market, where industry sales continue to lag behind all other categories of consumer products.
He indicated that operations are now more profitable since the announcement of a plan to simplify and combine certain key components of the Home sector. The company expects to achieve savings of US$4 million per year.