(Montreal) The manufacturer of furniture and children’s products Dorel Industries posted increased revenues in the fourth quarter and a smaller net loss than that recorded during the corresponding period of the previous year.
By disclosing its results on Monday, after the markets closed, the Quebec company reported a continued recovery of the childcare products division, with the best quarter in the segment in more than five years.
The Montreal-based company also pointed out that the drop in sales in the furniture industry had slowed down the results of the Dorel Home division.
Thus, for the fourth quarter ended December 30, 2023, Dorel, which publishes its results in US dollars, posted revenue from continuing operations of US350.7 million, an increase of 3.1% compared to to the US 340.3 million recorded during the previous financial year.
Net loss for the quarter was US$3.8 million, or US$0.12 per diluted share, compared to US$41.4 million, or US$1.27 per diluted share, the prior year.
Dorel reported adjusted net income of US$200,000, or US$0.01 per share, compared to an adjusted net loss of US$39.8 million, or US$1.22 per share, in the fourth quarter of the previous financial year.
For the full year, revenue was US$1.39 billion, down 11.6% from US$1.57 billion last year. The net loss was US$62.4 million, or US$1.92 per share, compared to US$118.9 million, or US$3.65 per share the previous year.
“We are well on our way to getting the Juvenile Products division back on solid footing. The fourth quarter of the Dorel Home division was disappointing, as the furniture market did not rebound as expected,” Dorel President and CEO Martin Schwartz said in a press release.
“Online sales are down significantly from last year’s levels, but the positive side is that in-store sales are up. In response to the challenging environment in which we operate, we have launched a new cost reduction program, primarily at Dorel Home, which will result in annual savings going forward,” he added.