Dorel Q3 results see nine per cent increase in revenue for recreation and leisure divison
Cannondale and Cycling Sports Group owner Dorel Industries has seen quarter three revenue increase in its bike branches.
Dorel boss Martin Schwartz also used the financials to expand on why the firm acquired fit-system Guru, 'explaining the way consumers shop is changing radically in and outside the cycling industry'.
Q3 revenues (ending September 30th) increased by 37.5 million, or 6.5 per cent. After adjustments for exchange rates and acquisitions, organic revenue increase in the quarter was approximately five per cent.
For the nine months up to the end of September, revenues increased by 65.5 million, or 3.6 per cent, to 1.868 billion. Organic revenue increase for that period was 2.5 per cent.
Dorel's Rec and Leisure branches – including Cannondale, Cycling Sports Group and Pacific Cycle – Q3 revenues increased by 19.2 million (9.1 per cent) to 229 million, compared to 209.8 million last year. Year to date, revenues were up 42.5 per cent, or 6.5 per cent, to 701.8 million from last year's 659.3 million.Article continues below
The segment's organic revenue increase was about 11 per cent for the quarter and 8 per cent year to date, with last year's quarter including losses at Sugoi 'and a number of unfavourable exchange rates, which hurt us on the bottom line last year'.
Martin Schwartz, president and CEO of Dorel Industries, said: "In our bike segment, Cannondale continues to prove it is becoming a brand of choice. It won three awards at Eurobike 2012 held in September, including the Eurobike Gold Award for the SuperSix EVO Black Edition, named best bike in the world by Germany's Tour magazine. Other awards went to Cannondale's Trigger One and the SuperX Hi‚ÄźMod Disc. Being chosen for three awards shows the depth of innovation and technical design in our 2013 Cannondale line‚Äźup.
"Another recognition recently was from a major UK cycling trade publication which named Cannondale as the bike brand of the year in the UK.
"As announced, we are significantly increasing our investment to become the title sponsor of the newly‚Äźnamed Cannondale Pro Cycling Team, effective January 1st. The team has signed riders from around the world including, as announced yesterday, two riders from Quebec. Cannondale has been part of pro cycling for the past six years. And since Dorel acquired the company, we havesteadily ramped up our involvement. We have found this exposure to be extremely beneficial for the brand, and it's been one of the key reasons for its growth, particularly in Europe.
"To further position Dorel as the go‚Äźto bike company, we have launched the new Guru Experience, an advanced, personalized bike fitting system that will help consumers reach their peak performance. But I want to clarify that we have bought the Guru Fit System and not the Guru line of bikes.
"The way consumers shop is changing radically in and outside the cycling industry. Guru is the centrepiece of our overall goal of meeting the needs of consumers and our retailers and transforming bicycle shopping. The system will fit cyclists for any brand, not just those which Dorel markets. Coupled with Cannondale's innovative new products, we are convinced 2013 will be another exciting year."