Dorel Sports revenue up 11% on steady Cannondale and Caloi trade
Cannondale parent Dorel Sports has posted an 11% revenue uptick in Q2 when compared to the same quarter last year, taking the group’s earnings to $317.3 million from $285.6 million last year.
The quarterly growth is the ninth consecutive quarter in the positive for the sports division, which has enjoyed sustained demand for Cannondale, Caloi and electric bikes from all brands. The mass market channels were similarly pegged back by availability, but nonetheless trade was described as “strong”. Six-month revenue increased to US$587.7 million, up US$113.8 million, or 24.0%, from prior year.
Gross margins were a beneficiary of reduced discounting in the marketplace as anything and everything had the tendency to sell through on the pandemic’s vastly enhanced demand. Likewise, foreign exchange fluctuations helped the bottom line. Caloi reversed last year’s operating loss to turn a modest profit.
“Given the continuing chaotic supply chain environment, we are very pleased with the second-quarter performance of our businesses,” said Dorel’s president and CEO, Martin Schwartz. “We are reporting substantially improved earnings while dealing with record increases in container freight rates and higher product costs in many categories. Demand for our products remained robust, but we were not able to fully satisfy consumer needs due to inventory shortages from a lack of ocean container availability. Dorel Sports had a remarkable quarter, again achieving record sales and earnings. Demand for bikes shows no signs of slowing and Cannondale’s models remain extremely popular in all markets.”
The financial update comes as the business sets about investing in its European operations, with further detail of a new Dutch facility, set to open this year, due shortly. As with many others in the bike industry, Dorel has been far from immune to ongoing supply constraints that reach beyond its own assembly lines. Likewise freight costs, among other things have factored into price increases that have already been priced in.
Overall, the wider Dorel business saw second quarter revenue tally $765.0 million, compared to US$724.0 million and up 5.7% from the same period a year ago.
