Dorel has revealed its Q2 financials, with a strong overal performance – revenue growth up ten per cent – and from the recreational/leisure side of its business.
In the sector revenue increased 7.9 per cent to US$15.8 million to $214.9m. Year-to-date revenues are up ten per cent to US$396.6 million.
Organic revenue was approximately five per cent for the quarter and year-to-date, when exclusing 2009’s acquisitions and foreign exchange rate variations.
Dorel noted that 2010 earnings are being negatively affected by the value of the Euro.
The firm said: "We are seeing the benefits of the on-going investments in our bicycle business through improved product development, solidifying our structure and promoting our brands. Our brands are gaining wider acceptance and our bicycles are more in demand.”
The financial statement provided more specific cycle-based detail, noting that a lack of ocean containers had also hampered performance.
“Cycling Sports Group (CSG) sales were up considerably over last year with exceptional demand for the division’s elite racing bicycles such as the Cannondale SuperSix. As in the first quarter, demand for new model year products remains strong across all brands resulting in expansion of the dealer base and increases in multi-brand dealers.
“Schwinn experienced a strong increase in POS year-over-year, due to the multi-million dollar advertising campaign launched in mid April, excellent retailer support and good early spring weather. While increasing selling, general and
administration costs, the ad campaign has been effective in enhancing the Schwinn brand. Sales to the segment’s mass merchant customers were hindered by a lack of supply due to the global shortage of ocean containers, a situation which is improving.”