Continued momentum in all three divisions at Dorel Sports resulted in the eighth consecutive quarter of revenue growth for the Dorel Industries division, which owns bike brands such as Cannondale.
First quarter revenue at Dorel Sports increased to US$270.3 million, an uplift of US$82.1 million, or 43.6%, year on year.
Excluding the impact of foreign exchange rates year-over-year, organic revenue improved by approximately 41.5%. The company pointed to a demand for bicycles that ‘continued unabated, as people continue to choose cycling for physical activity and leisure.’
Gross profit rose 72.8% year on year in the first quarter of 2021 to reach US$61.9 million.
‘The segment overcame supply chain challenges characterized by a lack of shipping availability out of Asia and shortages of bicycle components, major headwinds that will continue going forward. Cycling Sports Group’s gains were driven by significant double-digit growth in almost all countries as demand for Cannondale models was unprecedented. Pacific Cycle’s revenues increased in line with retail POS throughout the quarter but saw contraction in core margins due to ongoing cost headwinds. Demand was strong for Caloi in all channels with product mix improvement and growth in both IBD sales and e-commerce. However, supply shortages resulted in a slight sales decline in Brazil.’
Dorel President & CEO, Martin Schwartz said “Dorel had an excellent first quarter, exceeding our expectations and ending with a superb month of March as US government stimulus cheques were an added catalyst to the growth in revenue.
“Both Dorel Sports and Dorel Home continued to benefit from strong consumer demand for their products, with further growth limited only by available supply. Our solid quarter is a tribute to our teams who did an excellent job of mitigating severe supply chain difficulties.
“Continuing cost increases in all segments for freight and commodities, as well as ocean container availability, will continue to create significant pressures. We will have to offset this with price increases through the rest of this year.”
