Mr. Martin Schwartz reports

DOREL REPORTS FOURTH QUARTER AND 2023 YEAR-END RESULTS

Dorel Industries Inc. has released results for the fourth quarter and the year ended Dec. 30, 2023.

Fourth quarter revenue from continuing operations was $350.7-million (U.S.), up 3.1 per cent, from $340.3-million (U.S.) a year ago. Reported net loss from continuing operations for the quarter was $3.8-million (U.S.) or 12 U.S. cents per diluted share compared with $41.4-million (U.S.) or $1.27 (U.S.) per diluted share a year ago. Adjusted net income from continuing operations was $200,000 (U.S.) or one U.S. cent per diluted share compared with an adjusted net loss from continuing operations of $39.8-million (U.S.) or $1.22 (U.S.) per diluted share for the fourth quarter a year ago.

Revenue for the full year from continuing operations was $1.39-billion (U.S.), down 11.6 per cent, from $1.57-billion (U.S.) the previous year. Reported net loss from continuing operations was $62.4-million (U.S.) or $1.92 (U.S.) per diluted share compared with $118.9-million (U.S.) or $3.65 (U.S.) per diluted share a year ago. Adjusted net loss from continuing operations for the year was $58.4-million (U.S.) or $1.79 (U.S.) per diluted share, compared with $111.0-million (U.S.) or $3.41 (U.S.) per diluted share in 2022.

"Dorel Juvenile continued its trend of quarter-over-quarter earnings improvement in 2023 and delivered its best quarterly adjusted operating profit since the first quarter of 2017. We are gaining market share in our major markets and for the year. Revenues grew 2.4 per cent versus the prior year with an adjusted earnings turnaround of almost $59.0-million (U.S.). We are well on our way to getting Juvenile back on a solid footing. Dorel Home's fourth quarter was disappointing as the furniture market did not rebound as anticipated. On-line sales decreased considerably from last year's levels, but on the bright side, in-store sales were up. In response to the difficult environment we are operating in, we initiated a new cost reduction program, mostly at Dorel Home, which, going forward, will result in annual savings," stated Dorel president and chief executive officer Martin Schwartz.

New segment president

Rafael Camarano has been named president and chief executive officer of Dorel Juvenile. He joined the company 15 years ago with the founding of Dorel Brazil and has a wealth of experience in the industry across the entirety of operations. Most recently, Mr. Camarano served as president of Dorel Juvenile's international divisions. His strategic foresight and ability to identify and capitalize on emerging opportunities have been instrumental in making Dorel the market leader in Brazil and improving operations in all divisions within his scope. His appointment will ensure a seamless transition and an uninterrupted path on the segment's current strategic direction.

Outlook

"We expect our juvenile segment to continue on its path to improved earnings. Our strong portfolio of new innovative products, market share gains, excellence in e-commerce and strong retail relationships provide the confidence that we are well poised for full-year operating profit to improve over 2023. It should be noted that the seasonality of our business means that our first quarter, while substantially better than the prior-year comparison, will not match 2023's strong fourth quarter performance," commented Mr. Schwartz.

"At Dorel Home, there is continuing traction at brick and mortar as our focus on that channel is paying off and we expect continued improvement. Offsetting this are challenges at e-commerce that are common across the industry, and this is dampening sales over all. We remain convinced we are on the path to a turnaround and expect improvements in 2024, but to a great extent, this depends on the overall furniture industry health. We will continue to seek lower costs through our restructuring plan and, coupled with innovative new product, makes us confident we will deliver the turnaround as we did in Juvenile in 2023," concluded Mr. Schwartz.

Conference call

Dorel will hold a conference call to discuss these results on Tuesday, March 12, 2024, at 11 a.m. Eastern Time. Interested parties can join the call by dialling 1-800-319-4610. The conference call will also be available by live webcast. If you are unable to call in at this time, you may listen to a recording of the meeting by calling 1-800-319-6413 and entering the passcode 0720 on your phone. This recording will be available on Tuesday, March 12, 2024, as of 2:30 p.m. until 11:59 p.m. on Tuesday, March 19, 2024.

Consolidated financial statements as at Dec. 30, 2023, will be available on the company's website and will be available through the SEDAR+ website.

About Dorel Industries Inc.

Dorel (Toronto Stock Exchange: DII.B and DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel's strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile's powerfully branded products include global brands Maxi-Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother's Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of $1.4-billion (U.S.) and employs approximately 3,900 people in facilities located in 22 countries worldwide.

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