Dorel Industries is a production company based in Westmount Canada. They manufacture children’s products, home furnishings, and bicycles. On August 6th, the company announced its second-quarter results. Despite new variants of the COVID-19 pandemic, the company noted a strong bike demand that continues to push the company into its ninth consecutive year of revenue growth. The following figures are measured in thousands of US dollars.
In 2020, Dorel reported revenue of $580,755 for the first quarter and a gross profit of $106,533. Compared to the first quarter of 2021, which boasted a revenue of $708,862. Comparing the two quarters, the company had an increased revenue of 22.1% in the first quarter of 2021. Going from $580.8 million to $708.9 million in one year. Resulting in a total increase of $128.1 million.
The gross profit for the first quarter was increased by 250 basis points, reaching 20.8%. Increasing by 2.5% compared to the first quarter of 2020, which was 18.3%. The company notes this improvement despite higher costs of raw material and shipping. In 2021, the gross profit had increased by $40,917 and boasted a gross profit of $147,450. However, Dorel isn’t the only company to see significant growth despite freight costs and decreased labor from the pandemic. Many bicycling industries have also reported significant increases in sales.
Dorel President and CEO Martin Schwartz said despite the “continuing chaotic supply chain environment” the company is very happy with the financial results of the second quarter. Schwartz noted the company as having substantially improved earnings amid dealing with cost increases in many categories. Despite not meeting the demand of customer’s needs due to space availability in shipping containers, Schwartz believes the orders will not slow down. Schwartz is overall pleased and expects that as suppliers across Asia and Southeast Asia ease, they are expected to be “solid performers” in the industry.