Dorel Reports Fourth Quarter and 2024 Year-End Results

• Dorel Juvenile revenue increases on market share gains
• Dorel Home accelerates restructuring program to realign its business

/EIN News/ -- MONTRÉAL, March 11, 2025 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the fourth quarter and the year ended December 30, 2024.

Fourth quarter revenue was US$326.8 million, down 6.8%, from US$350.7 million a year ago. Reported net loss for the quarter was US$73.0 million or US$2.24 per diluted share compared to US$3.8 million or US$0.12 per diluted share a year ago. The reported net loss for the quarter includes total restructuring costs of US$14.1 million, and write-downs of deferred tax assets of US$36.5 million. Adjusted net loss¹ was US$59.2 million or US$1.82 per diluted share compared to an adjusted net income¹ of US$0.2 million or US$0.01 per diluted share for the fourth quarter a year ago. 

The adjusted operating loss¹ for the fourth quarter of 2024 was US$8.9 million, an increase from US$2.9 million in the previous year. A significant component of the shortfall in earnings was a US$7.5 million variation in earnings in the Juvenile segment caused by the stronger U.S. dollar in the last quarter of 2024. The Home segment adjusted operating loss¹ was slightly higher with both of these declines partially compensated by lower corporate costs.

Revenue for the full year was US$1.38 billion, down 0.6%, from US$1.39 billion the previous year. Reported net loss was US$172.0 million or US$5.28 per diluted share compared to US$62.4 million or US$1.92 per diluted share a year ago. The reported net loss for the full year includes total restructuring costs of US$17.4 million, an impairment loss on goodwill of US$45.3 million, and write-downs of deferred tax assets of US$36.5 million. Adjusted net loss¹ for the year was US$109.8 million or US$3.37 per diluted share, compared to US$58.4 million or US$1.79 per diluted share in 2023.

The adjusted operating loss¹ for 2024 was US$28.4 million, reflecting an improvement of US$19.3 million from the previous year. This enhancement is attributed to a stronger performance in the Juvenile segment and reduced corporate expenses, while the adjusted operating losses¹ from the Home segment remained consistent with the prior year.

“Dorel Juvenile has maintained its trajectory of year-over-year revenue growth this quarter, achieving a 2.2% organic revenue¹ increase. Notably, Europe achieved a revenue increase of approximately 18% in local currency. However, the strengthening U.S. dollar against almost all other major currencies negatively impacted revenue growth and earnings. Despite this challenge in the quarter, we continued to invest in marketing and sales initiatives to build momentum for 2025. Dorel Home revenues remain significantly lower than in previous years, and as previously announced on January 30, 2025, we are proactively adjusting our operational footprint to achieve profitability. Looking ahead, Dorel Home will focus on leveraging core competencies, strengthening retailer relationships, and driving growth with innovative, high-margin products,” stated Dorel President & CEO, Martin Schwartz.

______________________
¹ This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.

Summary of Financial Information (unaudited)
Fourth Quarters Ended December 30,
All figures in thousands of US $, except per share amounts
	2024		2023		Change
	$		$		%
Revenue	326,846		350,679		(6.8)%
Net loss	(73,008	)	(3,757	)	n.m.
Per share - Basic	(2.24	)	(0.12	)	n.m.
Per share - Diluted	(2.24	)	(0.12	)	n.m.
Adjusted net (loss) income (1)	(59,171	)	189		n.m.
Per share - Diluted (1)	(1.82	)	0.01		n.m.
Number of shares outstanding –
Basic weighted average	32,590,581		32,552,430
Diluted weighted average	32,590,581		32,552,430
n.m. = not meaningful
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by
IFRS and therefore is unlikely to be comparable to similar measures presented by other
issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and
measures” in this press release.
Summary of Financial Information (unaudited)
Years Ended December 30,
All figures in thousands of US $, except per share amounts
	2024		2023		Change
	$		$		%
Revenue	1,380,215		1,388,748		(0.6)%
Net loss	(171,958	)	(62,350	)	175.8%
Per share - Basic	(5.28	)	(1.92	)	175.0%
Per share - Diluted	(5.28	)	(1.92	)	175.0%
Adjusted net loss (1)	(109,829	)	(58,404	)	88.1%
Per share - Diluted (1)	(3.37	)	(1.79	)	88.3%
Number of shares outstanding –
Basic weighted average	32,571,973		32,541,953
Diluted weighted average	32,571,973		32,541,953
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by
IFRS and therefore is unlikely to be comparable to similar measures presented by other
issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and
measures” in this press release.

Dorel Juvenile
All figures in thousands of US $
Fourth Quarters Ended December 30 (unaudited)
	2024			2023			Change
	$	% of rev.		$	% of rev.		%
Revenue	212,843			212,035			0.4%
Gross profit	54,338	25.5%		64,356	30.4%		(15.6)%
Operating profit	1,616			11,299			(85.7)%
Adjusted gross profit (1)	54,803			64,356			(14.8)%
Adjusted operating profit (1)	2,360			12,850			(81.6)%
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore
is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition
and reconciliation of non-GAAP financial ratios and measures” in this press release.
All figures in thousands of US $
Years Ended December 30 (unaudited)
	2024			2023			Change
	$	% of rev.		$	% of rev.		%
Revenue	864,065			829,778			4.1%
Gross profit	235,223	27.2%		219,109	26.4%		7.4%
Operating profit	15,628			6,411			143.8%
Adjusted gross profit (1)	235,688			219,109			7.6%
Adjusted operating profit (1)	18,297			7,962			129.8%
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore
is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition
and reconciliation of non-GAAP financial ratios and measures” in this press release.

Dorel Juvenile's fourth-quarter revenue rose 0.4% to US$212.8 million compared to last year. Adjusted for foreign exchange rate variations, organic revenue¹ grew by 2.2%, led by strong sales in Europe, Brazil, Australia, and export markets. Europe saw double digit revenue growth stemming from car seats and strollers due to new product launches like the 360 Pro Family car seats and Oxford and Fame strollers. Full-year revenue increased by 4.1%, reaching US$864.1 million from US$829.8 million the previous year. The full-year organic revenue¹ increase was better than reported results at 5.3%.

The appreciation of the U.S. dollar affected earnings, resulting in lower-than-expected quarterly results. Compared to the previous year, the total impact in the quarter was an increase of approximately US$7.5 million in cost of sales. This led to reduced gross margins, with the adjusted gross margin¹ being 470 basis points lower than the fourth quarter of the previous year. Sales in North America were softer after a very strong third quarter which pulled earnings forward, resulting in lower earnings in the quarter compared to prior year. This and continued challenges in Chile accounted for most of the remaining decrease in earnings versus the prior year.

Fourth quarter operating profit was US$1.6 million, compared to US$11.3 million in the same period last year. Excluding restructuring costs, adjusted operating profit¹ was US$2.4 million, compared to US$12.9 million in the fourth quarter of the previous year. The decline in adjusted operating profit¹ is primarily due to the negative foreign exchange rate impact. Full-year operating profit was US$15.6 million compared to US$6.4 million in 2023. Adjusted operating profit¹ for the year was US$18.3 million, compared to US$8.0 million last year.

Dorel Home
All figures in thousands of US $
Fourth Quarters Ended December 30 (unaudited)
	2024				2023				Change
	$		% of rev.		$		% of rev.		%
Revenue	114,003				138,644				(17.8)%
Gross profit	(8,286	)	(7.3)%		6,481		4.7%		(227.9)%
Operating loss	(24,950	)			(12,802	)			94.9%
Adjusted gross profit (1)	1,838		1.6%		6,481		4.7%		(71.6)%
Adjusted operating loss (1)	(11,658	)			(9,821	)			18.7%
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore
is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition
and reconciliation of non-GAAP financial ratios and measures” in this press release.
All figures in thousands of US $
Years Ended December 30 (unaudited)
	2024				2023				Change
	$		% of rev.		$		% of rev.		%
Revenue	516,150				558,970				(7.7)%
Gross profit	10,817		2.1%		24,671		4.4%		(56.2)%
Operating loss	(95,330	)			(40,233	)			136.9%
Adjusted gross profit (1)	21,679		4.2%		24,671		4.4%		(12.1)%
Adjusted operating loss (1)	(35,413	)			(37,252	)			(4.9)%
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore
is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition
and reconciliation of non-GAAP financial ratios and measures” in this press release.

Revenue for the fourth quarter was US$114.0 million, a decrease of US$24.6 million, or 17.8%, from US$138.6 million last year. Most product categories experienced declines, although sales of indoor seating, TV stands, and step stools increased. Brick-and-mortar sales continue to be a focus area and, while slightly down compared to the previous year, this channel is expected to drive growth moving forward. For the full year, revenue was US$516.2 million, a decrease of US$42.8 million, or 7.7%, with e-commerce sales accounting for the majority of the decline.

Adjusted gross margin¹ for the fourth quarter decreased by 310 basis points compared to the previous year, primarily due to increased promotional pricing and lower volume efficiency and production levels at the Company's ready-to-assemble (RTA) plant. The changes implemented to reduce the manufacturing RTA footprint in 2024 did not impact margins positively in the quarter but are anticipated to do so in the future. Inventories decreased by US$79.7 million from the end of 2023 as the Company reduced new purchases and drew down existing inventory in line with the realignment efforts of the business. Lower operating expenses, which decreased by US$2.8 million, or 17.2%, to US$13.5 million partially offset the reduction in gross profit dollars.

Fourth quarter operating loss was US$25.0 million compared to US$12.8 million last year. After excluding significant restructuring costs in the quarter, adjusted operating loss¹ for the quarter was US$11.7 million versus US$9.8 million a year ago. For the full year, the operating loss was US$95.3 million, compared to US$40.2 million a year ago. Adjusted operating loss¹ for the full year was US$35.4 million, compared to US$37.3 million in 2023. 

As previously announced in January 2025, Dorel Home undertook significant restructuring efforts, including a workforce reduction primarily impacting selling and administrative functions and the announcement of the closure of the Montreal production facility. These actions resulted in combined restructuring charges of approximately US$13.3 million in the quarter. The Company also made considerable progress in consolidating operations into a single facility following the closure of the Tiffin, Ohio RTA manufacturing facility. Equipment transfers and facility upgrades at Cornwall, Ontario have been mostly completed, and management improvements have been implemented.

Financing Update

It was announced on February 21, 2025 that the Company had entered into a sale-leaseback transaction for its factory and warehousing facility in Columbus, Indiana. The gross proceeds from the sale were US$30.0 million, of which approximately US$8.0 million was allocated to reduce existing debt, with the balance designated for funding the Company’s ongoing operations. This transaction is part of the Company's initiative to finance the growth of its Juvenile segment and the turnaround of its Home segment, as announced on January 30, 2025. The Company is actively working on additional opportunities to further enhance its financial position.

Outlook

“As we move into 2025, Dorel Juvenile is poised for continued growth and success. Despite the challenges posed by foreign exchange fluctuations, we remain committed to our business plan centred around innovative new products, brand building, digital excellence and outstanding customer relationships. This will continue to drive market share gains and expansion efforts and enhance our competitive position. With a focus on improving profitability in underperforming regions, we have made management changes in Chile and we expect better performance going forward. We are confident in the Juvenile segment’s ability to achieve sustainable growth and create lasting value for our stakeholders,” commented Dorel President & CEO, Martin Schwartz.

“Dorel Home is making progress in overcoming the challenges posed by the current market environment for furniture companies. The restructuring efforts taken are already delivering results. Our ability to move domestic production to one RTA factory has improved our efficiency and lowered production costs. We have reduced our workforce and our success on lowering inventories means we will be exiting one of our warehouse leases at the end of the first quarter, with the balance of our footprint reduction scheduled for near end of year. Additionally, we will continue to innovate and introduce new products, prioritizing higher margin items and successful licensed brands to grow with our omni channel retail customers and expand our market presence in Europe. With a leaner, talented and more agile organization, we are confident in our ability to capitalize on market opportunities and expect to return to profitability by end of year,” commented Mr. Schwartz.

“As a Company with a substantial footprint in the United States, we are not immune from the potential business impact of import tariffs within the various jurisdictions in which we operate. Due to the unknowns today, it is difficult to assess the potential impact on our supply chain, product costing, retail price points and ultimately on our consumer. Our overall exposure to this risk is less acute in the Juvenile segment than in the Home segment given our domestic manufacturing facility in Columbus, Indiana and our global footprint. We also have strong supplier relationships in both segments with our overseas suppliers and we believe we are well positioned relative to our competitors to successfully navigate the challenges tariffs could pose,” concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results on Wednesday, March 12, 2025 at 11:00 AM Eastern Time. Interested parties can join the call by dialing 1-844-763-8274. The conference call can also be accessed via live webcast at http://www.dorel.com. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-855-669-9658 and entering the passcode 9621162 on your phone. This recording will be available on Wednesday, March 12, 2025 as of 2:30 PM until 11:59 PM on Wednesday, March 19, 2025.

Consolidated financial statements as at December 30, 2024 will be available on the Company's website, www.dorel.com, and will be available through the SEDAR+ website.

Profile

Dorel Industries Inc. (TSX: DII.B, 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 US$1.4 billion and employs approximately 3,600 people in facilities located in twenty-two countries worldwide.

Caution Regarding Forward-Looking Statements

Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties, including statements regarding the impact of the macro-economic environment, including inflationary pressures, changes in consumer spending, exchange rate fluctuations, the possible imposition of tariffs, and increases in interest rates on the Company’s business, financial position and operations, and are based on several assumptions which give rise to the possibility that actual results could differ materially from the Company’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, the Company cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits the Company will derive from them. Forward-looking statements are provided in this press release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of the Company’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of assumptions that the Company believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations expressed in or implied by the forward-looking statements include:

• general economic and financial conditions, including those resulting from the current high inflationary environment;
• changes in applicable laws or regulations;
• changes in product costs and supply channels, including disruption of the Company’s supply chain resulting from the macro-economic environment;
• foreign currency fluctuations, including high levels of volatility in foreign currencies with respect to the US dollar reflecting uncertainties related to the macro-economic environment;
• possible imposition of tariffs on goods imported into the United States;
• customer and credit risk, including the concentration of revenues with a small number of customers;
• costs associated with product liability;
• changes in income tax legislation or the interpretation or application of those rules;
• the continued ability to develop products and support brand names;
• changes in the regulatory environment;
• outbreak of public health crises, such as the COVID-19 pandemic, that could adversely affect global economies and financial markets, resulting in an economic downturn which could be for a prolonged period of time and have a material adverse effect on the demand for the Company’s products and on its business, financial condition and results of operations;
• the effect of international conflicts on the Company’s sales, including the ongoing Russia-Ukraine war and a possible resumption of the Israeli-Hamas war;
• continued access to capital resources, including compliance by the Company with all of the covenants under its ABL facility and term loan facility, and the related costs of borrowing, all of which may be adversely impacted by the macro-economic environment;
• failures related to information technology systems;
• changes in assumptions in the valuation of goodwill and other intangible assets and any future decline in market capitalization;
• there being no certainty that the Company will declare any dividend in the future;
• increased exposure to cybersecurity risks as a result of remote work by the Company’s employees;
• the Company’s ability to protect its current and future technologies and products and to defend its intellectual property rights;
• potential damage to the Company’s reputation; and
• the effect of climate change on the Company.

These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in the Company’s annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors set out in the previously mentioned documents are expressly incorporated by reference herein in their entirety.

The Company cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial may also have a material adverse effect on the Company’s business, financial condition, or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

All figures in the tables below are in thousands of US $, except per share amounts.

Consolidated Results
			Fourth Quarters Ended									Years Ended
			Dec 30,		Dec 30,		Variation					Dec 30,		Dec 30,		Variation
			2024		2023		$		%			2024		2023		$		%
Revenue			326,846		350,679		(23,833	)	(6.8)%			1,380,215		1,388,748		(8,533	)	(0.6)%
Cost of sales			280,794		279,842		952		0.3%			1,134,175		1,144,968		(10,793	)	(0.9)%
Gross profit			46,052		70,837		(24,785	)	(35.0)%			246,040		243,780		2,260		0.9%
Adjusted gross profit (1)			56,641		70,837		(14,196	)	(20.0)%			257,367		243,780		13,587		5.6%
Selling expenses			30,259		30,258		1		n.m.			126,162		126,096		66		0.1%
General and administrative expenses			29,244		36,645		(7,401	)	(20.2)%			133,478		139,696		(6,218	)	(4.5)%
Research and development expenses			5,727		5,979		(252	)	(4.2)%			23,579		24,536		(957	)	(3.9)%
Impairment loss on trade accounts receivable			285		837		(552	)	(65.9)%			2,507		1,117		1,390		124.4%
Restructuring costs			3,533		4,532		(999	)	(22.0)%			6,043		4,532		1,511		33.3%
Impairment loss on goodwill			-		-		-		n/a			45,302		-		45,302		100.0%
Operating loss			(22,996	)	(7,414	)	15,582		210.2%			(91,031	)	(52,197	)	38,834		74.4%
Adjusted operating loss (1)			(8,874	)	(2,882	)	5,992		207.9%			(28,359	)	(47,665	)	(19,306	)	(40.5)%
Finance expenses			9,694		5,963		3,731		62.6%			38,556		24,726		13,830		55.9%
Loss before income taxes			(32,690	)	(13,377	)	19,313		144.4%			(129,587	)	(76,923	)	52,664		68.5%
Income taxes expense (recovery)			40,318		(9,620	)	49,938		n.m.			42,371		(14,573	)	56,944		n.m.
Net loss			(73,008	)	(3,757	)	69,251		n.m.			(171,958	)	(62,350	)	109,608		175.8%
Adjusted net (loss) income (1)			(59,171	)	189		59,360		n.m.			(109,829	)	(58,404	)	51,425		88.1%
Basic loss per share			(2.24	)	(0.12	)	2.12		n.m.			(5.28	)	(1.92	)	3.36		175.0	%
Diluted loss per share			(2.24	)	(0.12	)	2.12		n.m.			(5.28	)	(1.92	)	3.36		175.0	%
Adjusted diluted (loss) earnings per share (1)			(1.82	)	0.01		1.83		n.m.			(3.37	)	(1.79	)	1.58		88.3	%
Weighted average number of shares - Basic			32,590,581		32,552,430		n/a		n/a			32,571,973		32,541,953		n/a		n/a
Weighted average number of shares - Diluted			32,590,581		32,552,430		n/a		n/a			32,571,973		32,541,953		n/a		n/a
Gross margin (2)			14.1	%	20.2	%	n/a		(610) bp			17.8	%	17.6	%	n/a		20 bp
Adjusted gross margin (1)			17.3	%	20.2	%	n/a		(290) bp			18.6	%	17.6	%	n/a		100 bp
Selling expenses as a percentage of revenue (3)			9.3	%	8.6	%	n/a		70 bp			9.1	%	9.1	%	n/a		- bp
General and administrative expenses as a percentage of revenue (4)			8.9	%	10.4	%	n/a		(150) bp			9.7	%	10.1	%	n/a		(40) bp
n.m. = not meaningful
n/a = not applicable
bp = basis point
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and
therefore is unlikely to be comparable to similar measures presented by other issuers.
Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
(2) Gross margin is defined as gross profit divided by revenue.
(3) Selling expenses as a percentage of revenue is defined as selling expenses divided by revenue.
(4) General and administrative expenses as a percentage of revenue is defined as general and administrative expenses divided by revenue.

Dorel Juvenile
			Fourth Quarters Ended									Years Ended
			Dec 30,		Dec 30,		Variation					Dec 30,		Dec 30,		Variation
			2024		2023		$		%			2024		2023		$		%
Revenue			212,843		212,035		808		0.4%			864,065		829,778		34,287		4.1%
Cost of sales			158,505		147,679		10,826		7.3%			628,842		610,669		18,173		3.0%
Gross profit			54,338		64,356		(10,018	)	(15.6)%			235,223		219,109		16,114		7.4%
Adjusted gross profit (1)			54,803		64,356		(9,553	)	(14.8)%			235,688		219,109		16,579		7.6%
Selling expenses			25,173		24,288		885		3.6%			104,585		101,185		3,400		3.4%
General and administrative expenses			22,289		21,921		368		1.7%			93,466		89,751		3,715		4.1%
Research and development expenses			4,655		4,689		(34	)	(0.7)%			18,702		19,345		(643	)	(3.3)%
Impairment loss on trade accounts receivable			326		608		(282	)	(46.4)%			638		866		(228	)	(26.3)%
Restructuring costs			279		1,551		(1,272	)	(82.0)%			2,204		1,551		653		42.1%
Operating profit			1,616		11,299		(9,683	)	(85.7)%			15,628		6,411		9,217		143.8%
Adjusted operating profit (1)			2,360		12,850		(10,490	)	(81.6)%			18,297		7,962		10,335		129.8%
Gross margin (2)			25.5	%	30.4	%	n/a		(490) bp			27.2	%	26.4	%	n/a		80 bp
Adjusted gross margin (1)			25.7	%	30.4	%	n/a		(470) bp			27.3	%	26.4	%	n/a		90 bp
Selling expenses as a percentage of revenue (3)			11.8	%	11.5	%	n/a		30 bp			12.1	%	12.2	%	n/a		(10) bp
General and administrative expenses as a percentage of revenue (4)			10.5	%	10.3	%	n/a		20 bp			10.8	%	10.8	%	n/a		- bp
n/a = not applicable
bp = basis point
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore
is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition
and reconciliation of non-GAAP financial ratios and measures” in this press release.
(2) Gross margin is defined as gross profit divided by revenue.
(3) Selling expenses as a percentage of revenue is defined as selling expenses divided by revenue.
(4) General and administrative expenses as a percentage of revenue is defined as general and administrative expenses divided by revenue.

Dorel Home
			Fourth Quarters Ended									Years Ended
			Dec 30,		Dec 30,		Variation					Dec 30,		Dec 30,		Variation
			2024		2023		$		%			2024		2023		$		%
Revenue			114,003		138,644		(24,641	)	(17.8)%			516,150		558,970		(42,820	)	(7.7)%
Cost of sales			122,289		132,163		(9,874	)	(7.5)%			505,333		534,299		(28,966	)	(5.4)%
Gross profit			(8,286	)	6,481		(14,767	)	(227.9)%			10,817		24,671		(13,854	)	(56.2)%
Adjusted gross profit (1)			1,838		6,481		(4,643	)	(71.6)%			21,679		24,671		(2,992	)	(12.1)%
Selling expenses			5,086		5,970		(884	)	(14.8)%			21,577		24,911		(3,334	)	(13.4)%
General and administrative expenses			7,379		8,813		(1,434	)	(16.3)%			28,769		31,570		(2,801	)	(8.9)%
Research and development expenses			1,072		1,290		(218	)	(16.9)%			4,877		5,191		(314	)	(6.0)%
Impairment (reversal) loss on trade accounts receivable			(41	)	229		(270	)	n.m.			1,869		251		1,618		n.m.
Restructuring costs			3,168		2,981		187		6.3%			3,753		2,981		772		25.9%
Impairment loss on goodwill			-		-		-		n/a			45,302		-		45,302		100.0%
Operating loss			(24,950	)	(12,802	)	12,148		94.9%			(95,330	)	(40,233	)	55,097		136.9%
Adjusted operating loss (1)			(11,658	)	(9,821	)	1,837		18.7%			(35,413	)	(37,252	)	(1,839	)	(4.9)%
Gross margin (2)			(7.3	)%	4.7	%	n/a		(1,200) bp			2.1	%	4.4	%	n/a		(230) bp
Adjusted gross margin (1)			1.6	%	4.7	%	n/a		(310) bp			4.2	%	4.4	%	n/a		(20) bp
Selling expenses as a percentage of revenue (3)			4.5	%	4.3	%	n/a		20 bp			4.2	%	4.5	%	n/a		(30) bp
General and administrative expenses as a percentage of revenue (4)			6.5	%	6.4	%	n/a		10 bp			5.6	%	5.6	%	n/a		- bp
n.m. = not meaningful
n/a = not applicable
bp = basis point
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore
is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition
and reconciliation of non-GAAP financial ratios and measures” in this press release.
(2) Gross margin is defined as gross profit divided by revenue.
(3) Selling expenses as a percentage of revenue is defined as selling expenses divided by revenue.
(4) General and administrative expenses as a percentage of revenue is defined as general and administrative expenses divided by revenue.

Definition and Reconciliation of Non-GAAP Financial Ratios and Measures

Dorel presents in this press release certain non-GAAP financial ratios and measures, as described below. These non-GAAP financial ratios and measures do not have a standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. These non-GAAP financial ratios and measures should not be considered in isolation or as a substitute for a measure prepared in accordance with IFRS. Contained within this press release are reconciliations of the non-GAAP financial ratios and measures to the most directly comparable financial measures calculated in accordance with IFRS.

Dorel believes that the non-GAAP financial ratios and measures used in this press release provide investors with additional information to analyze its results and to measure its financial performance by excluding the variation caused by certain items that Dorel believes do not reflect its core business performance and provides better comparability between the periods presented. Excluding these items does not imply they are necessarily non-recurring. The non-GAAP financial measures are also used by management to assess Dorel's financial performance and to make operating and strategic decisions.

Adjustments to non-GAAP financial ratios and measures
As noted above, certain of our non-GAAP financial measures and ratios exclude the variation caused by certain adjustments that affect the comparability of Dorel’s financial results and could potentially distort the analysis of trends in its business performance. Adjustments which impact more than one non-GAAP financial ratio and measure are explained below.

Restructuring costs
Restructuring costs are comprised of costs directly related to significant exit activities, including the sale of manufacturing facilities, closure of businesses, reorganization, optimization, transformation, and consolidation to improve the competitive position of the Company in the marketplace and to reduce costs and bring efficiencies, and acquisition-related costs in connection with business acquisitions. Restructuring costs are included as an adjustment of adjusted gross profit, adjusted gross margin, adjusted operating profit (loss), adjusted net income (loss) and adjusted diluted earnings (loss) per share. Restructuring costs were respectively US$14.1 million and US$17.4 million for the fourth quarter and year ended December 30, 2024 (2023 – US$4.5 million and US$4.5 million). Refer to the section “Impairment loss on goodwill and restructuring costs” in the MD&A for more details.

Impairment loss on goodwill
Impairment loss on goodwill is included as an adjustment of adjusted operating profit (loss), adjusted net income (loss) and adjusted diluted earnings (loss) per share. Impairment loss on goodwill was respectively nil and US$45.3 million for the fourth quarter and year ended December 30, 2024 (none in 2023). Refer to the section “Impairment loss on goodwill and restructuring costs” in the MD&A for more details.

Adjusted gross profit and adjusted gross margin
Adjusted gross profit is calculated as gross profit excluding the impact of restructuring costs. Adjusted gross margin is a non-GAAP ratio and is calculated as adjusted gross profit divided by revenue. Dorel uses adjusted gross profit and adjusted gross margin to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel also uses adjusted gross profit and adjusted gross margin on a segment basis to measure its performance at the segment level. Dorel excludes this item because it affects the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted gross profit and adjusted gross margin to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs. Excluding this item does not imply it is necessarily non-recurring. These ratios and measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies.

			Fourth Quarters Ended					Years Ended
			Dec 30,		Dec 30,			Dec 30,		Dec 30,
			2024		2023			2024		2023
Gross profit			46,052		70,837			246,040		243,780
Adjustment for:
	Restructuring costs recorded within gross profit		10,589		-			11,327		-
Adjusted gross profit			56,641		70,837			257,367		243,780
Adjusted gross margin (1)			17.3	%	20.2	%		18.6	%	17.6	%
	(1) This is a non-GAAP financial ratio and it is calculated as adjusted gross profit divided by revenue.
			Fourth Quarters Ended					Years Ended
			Dec 30,		Dec 30,			Dec 30,		Dec 30,
Dorel Juvenile			2024		2023			2024		2023
Gross profit			54,338		64,356			235,223		219,109
Adjustment for:
	Restructuring costs recorded within gross profit		465		-			465		-
Adjusted gross profit			54,803		64,356			235,688		219,109
Adjusted gross margin (1)			25.7	%	30.4	%		27.3	%	26.4	%
	(1) This is a non-GAAP financial ratio and it is calculated as adjusted gross profit divided by revenue.
			Fourth Quarters Ended					Years Ended
			Dec 30,		Dec 30,			Dec 30,		Dec 30,
Dorel Home			2024		2023			2024		2023
Gross profit			(8,286	)	6,481			10,817		24,671
Adjustment for:
	Restructuring costs recorded within gross profit		10,124		-			10,862		-
Adjusted gross profit			1,838		6,481			21,679		24,671
Adjusted gross margin (1)			1.6	%	4.7	%		4.2	%	4.4	%
	(1) This is a non-GAAP financial ratio and it is calculated as adjusted gross profit divided by revenue.

Adjusted operating profit (loss)
Adjusted operating profit (loss) is calculated as operating profit (loss) excluding the impact of restructuring costs. Adjusted operating profit (loss) also excludes impairment loss on goodwill. Management uses adjusted operating profit (loss) to measure its performance from one period to the next, without the variation caused by the impact of the items described above. Dorel also uses adjusted operating profit (loss) on a segment basis to measure its performance at the segment level. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted operating profit (loss) to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs and impairment loss on goodwill. Excluding these items does not imply they are necessarily non-recurring. This measure does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to a similar measure presented by other companies.

			Fourth Quarters Ended					Years Ended
			Dec 30,		Dec 30,			Dec 30,		Dec 30,
			2024		2023			2024		2023
Operating loss			(22,996	)	(7,414	)		(91,031	)	(52,197	)
Adjustment for:
	Total restructuring costs		14,122		4,532			17,370		4,532
	Impairment loss on goodwill		-		-			45,302		-
Adjusted operating loss			(8,874	)	(2,882	)		(28,359	)	(47,665	)
			Fourth Quarters Ended					Years Ended
			Dec 30,		Dec 30,			Dec 30,		Dec 30,
Dorel Juvenile			2024		2023			2024		2023
Operating profit			1,616		11,299			15,628		6,411
Adjustment for:
	Restructuring costs		744		1,551			2,669		1,551
Adjusted operating profit			2,360		12,850			18,297		7,962
			Fourth Quarters Ended					Years Ended
			Dec 30,		Dec 30,			Dec 30,		Dec 30,
Dorel Home			2024		2023			2024		2023
Operating loss			(24,950	)	(12,802	)		(95,330	)	(40,233	)
Adjustment for:
	Restructuring costs		13,292		2,981			14,615		2,981
	Impairment loss on goodwill		-		-			45,302		-
Adjusted operating loss			(11,658	)	(9,821	)		(35,413	)	(37,252	)

Adjusted net income (loss) and adjusted diluted earnings (loss) per share
Adjusted net income (loss) is calculated as net income (loss) excluding the impact of restructuring costs and impairment loss on goodwill, as well as income taxes expense (recovery) relating to the adjustments above. Adjusted diluted earnings (loss) per share is a non-GAAP ratio and is calculated as adjusted net income (loss) divided by the weighted average number of diluted shares. Management uses adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure the business performance of the Company from one period to the next. Excluding these items does not imply they are necessarily non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies.

			Fourth Quarters Ended					Years Ended
			Dec 30,		Dec 30,			Dec 30,		Dec 30,
			2024		2023			2024		2023
Net loss			(73,008	)	(3,757	)		(171,958	)	(62,350	)
Adjustment for:
	Total restructuring costs		14,122		4,532			17,370		4,532
	Impairment loss on goodwill		-		-			45,302		-
	Income taxes recovery relating to the above-noted adjustments		(285	)	(586	)		(543	)	(586	)
Adjusted net (loss) income			(59,171	)	189			(109,829	)	(58,404	)
Basic loss per share			(2.24	)	(0.12	)		(5.28	)	(1.92	)
Diluted loss per share			(2.24	)	(0.12	)		(5.28	)	(1.92	)
Adjusted diluted (loss) earnings per share (1)			(1.82	)	0.01			(3.37	)	(1.79	)
	(1) This is a non-GAAP financial ratio and it is calculated as adjusted net income (loss) divided by weighted average number
	of diluted shares.

Organic revenue growth (decline) and adjusted organic revenue growth (decline)
Organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates. Adjusted organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates and the impact of the acquired businesses for the first year of operation and the sale of divisions. Management uses organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure the business performance of the Company as a whole and at the segment level from one period to the next. Excluding these items does not imply they are necessarily non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies.

		Fourth Quarters Ended December 30,
		Consolidated									Dorel Juvenile								Dorel Home
		2024				2023					2024			2023					2024				2023
		$		%		$		%			$		%	$		%			$		%		$		%
Revenue of the period		326,846				350,679					212,843			212,035					114,003				138,644
Revenue of the comparative period		(350,679	)			(340,261	)				(212,035	)		(188,923	)				(138,644	)			(151,338	)
Revenue (decline) growth		(23,833	)	(6.8	)	10,418		3.1			808		0.4	23,112		12.2			(24,641	)	(17.8	)	(12,694	)	(8.4	)
Impact of varying foreign exchange rates		4,031		1.2		(5,843	)	(1.8	)		3,952		1.8	(5,472	)	(2.9	)		79		0.1		(371	)	(0.2	)
Organic revenue (decline) growth (1)		(19,802	)	(5.6	)	4,575		1.3			4,760		2.2	17,640		9.3			(24,562	)	(17.7	)	(13,065	)	(8.6	)
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and
therefore is unlikely to be comparable to similar measures presented by other
issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
		Years Ended December 30,
		Consolidated									Dorel Juvenile								Dorel Home
		2024				2023					2024			2023					2024				2023
		$		%		$		%			$		%	$		%			$		%		$		%
Revenue of the period		1,380,215				1,388,748					864,065			829,778					516,150				558,970
Revenue of the comparative period		(1,388,748	)			(1,570,274	)				(829,778	)		(810,191	)				(558,970	)			(760,083	)
Revenue (decline) growth		(8,533	)	(0.6	)	(181,526	)	(11.6	)		34,287		4.1	19,587		2.4			(42,820	)	(7.7	)	(201,113	)	(26.5	)
Impact of varying foreign exchange rates		9,568		0.7		(9,905	)	(0.6	)		9,573		1.2	(9,899	)	(1.2	)		(5	)	-		(6	)	-
Organic revenue growth (decline) (1)		1,035		0.1		(191,431	)	(12.2	)		43,860		5.3	9,688		1.2			(42,825	)	(7.7	)	(201,119	)	(26.5	)
(1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and
therefore is unlikely to be comparable to similar measures presented by other
issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.

CONTACTS:
Dorel Industries Inc.
John Paikopoulos
(514) 934-3034

Dorel Industries Inc.
Jeffrey Schwartz
(514) 934-3034