Dorel Reports First Quarter 2025 Financial Results

• Dorel Juvenile reports strong performance
• Dorel Home taking further steps to return to profitability

/EIN News/ -- MONTRÉAL, May 12, 2025 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today announced its financial results for the first quarter ended March 31, 2025.

First quarter revenue was US$320.5 million, down 8.7%, from US$351.1 million a year ago. Reported net loss for the quarter was US$25.3 million or US$0.77 per diluted share compared to US$17.6 million or US$0.54 per diluted share a year ago. The reported net loss for the quarter includes total restructuring costs of US$1.6 million and as such, adjusted net loss¹ was US$23.6 million or US$0.72 per diluted share compared to US$16.9 million or US$0.52 per diluted share for the first quarter a year ago.  

‟Dorel Juvenile had a strong start to 2025, with another quarter of organic revenue growth¹. Our new product introductions continue to resonate with retailers and consumers and our pipeline of upcoming launches is robust. Another positive, though out of our control, was the weakening of the U.S. dollar in the quarter against most other major currencies which helped earnings and should continue to do so going forward. Conversely, Dorel Home faced a challenging start to the year, with e-commerce sales much lower than expected. As we said in our last earnings release, brick and mortar success will be a key to our turnaround, but the change in the e-commerce landscape means we significantly underperformed. We have lowered our expectations on what the e-commerce channel can deliver and as a result will be taking further action to substantially reduce our footprint,” 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)
First Quarters Ended March 31,
All figures in thousands of US $, except per share amounts
	2025		2024		Change
	$		$		%
Revenue	320,456		351,072		(8.7	)%
Net loss	(25,250	)	(17,569	)	43.7	%
Per share - Basic	(0.77	)	(0.54	)	42.6	%
Per share - Diluted	(0.77	)	(0.54	)	42.6	%
Adjusted net loss (1)	(23,626	)	(16,870	)	40.0	%
Per share - Diluted (1)	(0.72	)	(0.52	)	38.5	%
Number of shares outstanding –
Basic weighted average	32,637,429		32,555,897
Diluted weighted average	32,637,429		32,555,897
(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 $
First Quarters Ended March 31 (unaudited)
	2025				2024				Change
	$		% of rev.		$		% of rev.		%
Revenue	215,858				212,690				1.5	%
Gross profit	58,848		27.3	%	56,457		26.5	%	4.2	%
Operating profit	3,024				549				450.8	%
Adjusted operating profit (1)	4,201				1,129				272.1	%
(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.

For the first quarter of 2025, revenue reached US$215.9 million, a 1.5% increase compared to the prior year. Adjusted for foreign exchange rate variations year-over-year, the organic revenue growth¹ was 4.0%. This growth was driven by strong performances across most markets, with Europe being the most significant contributor. Adjusted operating profit¹ was US$4.2 million, an increase of US$3.1 million compared to last year. Favourable currency movements contributed to the earnings increase.

The Juvenile segment’s strong performance was led by continued growth of the Maxi-Cosi brand, with its relevance increasing in all markets. Overall, Maxi-Cosi sales grew by approximately 9% over the prior year and now account for approximately 37% of total Juvenile segment sales. As a premium brand in the Juvenile segment portfolio of brands, this also improved earnings based on better margin mix. Partially offsetting this increase were lower earnings in the U.S. market versus the prior year due mainly to the timing of higher input costs in the quarter versus the prior year.

The principal tariff impact on the Juvenile segment is the current 145% rate on imported items into the U.S. from China. The U.S. market accounts for approximately 45% of Juvenile segment sales, but reducing that exposure is the fact that approximately 40% of U.S. sales are car seats domestically produced at the Company’s manufacturing facility in Columbus, Indiana. The challenge on costs for China sourced product applies to the entire industry, primarily strollers, given the infrastructure required for production. While Dorel has moved some production of certain product categories to other countries like Vietnam and Mexico, there will be cost pressures, and price increases will be necessary in these categories.

Given that Dorel’s competitors source products from China with limited exceptions, should current tariff rates continue to apply longer term, the Juvenile segment’s U.S. based manufacturing facility provides an advantage and an opportunity to capture additional market share and increase sales of car seats. Some Dorel car seats currently made in China can be transferred to the U.S. based manufacturing facility and at current capacity levels, up to US$50 million of revenue could be generated from additional production with minimal investment, with greater opportunity should the business case merit the investment.

Dorel Home

All figures in thousands of US $
First Quarters Ended March 31 (unaudited)
	2025				2024				Change
	$		% of rev.		$		% of rev.		%
Revenue	104,598				138,382				(24.4	)%
Gross profit	1,287		1.2	%	11,780		8.5	%	(89.1	)%
Operating loss	(11,494	)			(3,556	)			223.2	%
Adjusted gross profit (1)	1,645		1.6	%	11,780		8.5	%	(86.0	)%
Adjusted operating loss (1)	(11,135	)			(3,371	)			230.3	%
(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 first quarter was US$104.6 million, a decrease of US$33.8 million, or 24.4%, from US$138.4 million last year. The decrease was due principally to declines in the e-commerce channel with brick-and-mortar sales being flat with the prior year. Sequentially, brick-and-mortar sales increased by approximately 24% from the fourth quarter of 2024, while e-commerce sales decreased by approximately 38%. The decrease in revenue combined with lower gross margins accounts for the majority of the first quarter’s adjusted operating loss¹ of US$11.1 million compared to US$3.4 million last year.

The lower gross margins were mostly due to lower e-commerce sales where the competitive environment and our current product offering meant that price reductions and promotions were necessary to move inventory. The Home segment was unable to deliver new product innovation in the quarter and this meant sales consisted of mostly older inventory through promotional pricing. The domestic manufacturing operations also underperformed versus expectations, despite the benefit of production now being out of one facility versus two in the same period last year. Operating costs decreased by approximately 15%, primarily due to reduced headcount and lower selling expenses.

The U.S. tariff impact on the Home segment is substantial, with approximately 35% of all sales sourced from China and approximately 40% from other Asian-based suppliers. Current tariff rates on other countries at 10% are being actively managed in collaboration with both our supplier base and customer base. The primary challenge exists with China-sourced products due to the significant cost impact. Unlike the Juvenile segment where China is the clear leader in the industry for manufacturing capabilities, alternative furniture sources can be found in other regions of the world. However, price increases for consumers will be unavoidable at current tariff levels, potentially affecting consumer demand as furniture purchases are more discretionary compared to juvenile product essentials.

As in the Juvenile segment, the Cornwall, Ontario based Ready-to-Assemble facility benefits from tariff-free sales to the U.S. The facility is still increasing production but will eventually offer more capacity, making it competitive against imports.

Restructuring Update

The lower-than-expected sales and margin levels in the first quarter in the Home segment has prompted additional restructuring activities which will be communicated and subsequently implemented during the second quarter, over and above those previously announced on January 30, 2025. As a first step, the operations of the Home segment will be significantly altered, with the sales, marketing and product development organization being merged into the successful Cosco division. The new organization will design, develop and bring to market both imported and domestically produced product for the entire Home segment. A substantial number of positions will be eliminated as they have been identified during the second quarter as redundant and not necessary to support anticipated sales levels and channels moving forward. Back-office functions to support the organization will also be consolidated, leveraging resources from the Juvenile segment where beneficial. We are actively pursuing other opportunities that we believe can decrease our overhead and operating costs further and will communicate all meaningful developments by the end of June 2025.

The benefits of the restructuring plan announced in January are evident in the lower run rate of operating expenses. In addition, the manufacturing operations in Montreal, Quebec were closed in the first quarter. The ability to further reduce the Home segment’s footprint is being explored to deliver even more cost savings connected to the SKU reduction initiative and smaller distribution footprint objectives.

Dorel Juvenile continues to identify opportunities for cost reduction across the segment and in the quarter ended March 31, 2025 recorded US$1.2 million in restructuring costs, made up of severance and related employee costs.

Long-Term Debt and Financing Update

On May 9, 2025, the Company further amended its ABL facility and term loan facility whereby the lenders agreed to forebear from enforcing their rights and exercising their remedies under both the ABL facility and term loan facility further to a default by the Company relating to certain financial covenants. The forbearance period commenced on May 9, 2025 and will end on the earlier of (i) August 8, 2025; and (ii) the occurrence of any event of default, other than the current event of default, under the ABL facility or term loan facility. The Company must provide the lenders with additional forbearance reporting during the forbearance period. In addition, the total availability under the ABL facility was decreased to $200.0 million as part of the May 9, 2025 amendment.

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. In addition, the Company continues to actively work on additional financing opportunities to further enhance its financial position.

Outlook

“Providing an outlook given the current tariff situation is obviously difficult as we do not have visibility on what will transpire with existing tariffs and possible changes going forward. We believe we are in an advantageous position relative to much of our competition, but the situation is difficult nonetheless. In the second quarter, in both of our segments, orders from customers have slowed, even stopping entirely for some customers for China sourced product. This will have a negative impact on our second quarter results, and in particular in the Home segment, but given that a long-term resolution on tariffs is impossible to predict, the exact financial impact cannot be quantified as of now,” commented Dorel President & CEO, Martin Schwartz.

“Longer term, our Juvenile segment is expected to continue to deliver improved earnings over the prior year. Though tariffs could challenge earnings in the short-term, the domestic manufacturing opportunity could more than offset this risk. For now, we continue to execute our business strategy that has been successful over the past several years, adjusting as necessary for external factors like tariffs and foreign exchange. In the Home segment, the focus is on transitioning to a new business model, to once again return to profitability. Predicting when that will happen is made even more difficult by the tariff situation, but this will not prevent us from making the internal changes necessary for success. We should have much better clarity soon and will be able to provide better guidance thereon in the near future,” concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results on Monday, May 12, 2025 at 11:00 AM Eastern Time. Interested parties can join the call by dialing 1-833-752-3231. 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 1176620 on your phone. This recording will be available on Monday, May 12, 2025 as of 2:30 PM until 11:59 PM on Monday, May 19, 2025.

Condensed consolidated interim financial statements as at March 31, 2025 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 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;
• the effect of tariffs on imported goods;
• 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.

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

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

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

Consolidated Results

	First Quarters Ended
	March 31,		March 31,		Variation
	2025		2024		$			%
Revenue	320,456		351,072		(30,616	)	(8.7	)%
Cost of sales	260,321		282,835		(22,514	)	(8.0	)%
Gross profit	60,135		68,237		(8,102	)	(11.9	)%
Adjusted gross profit (1)	60,493		68,237		(7,744	)	(11.3	)%
Selling expenses	32,379		31,162		1,217		3.9	%
General and administrative expenses	35,060		37,750		(2,690	)	(7.1	)%
Research and development expenses	5,639		6,091		(452	)	(7.4	)%
Impairment (reversal) loss on trade accounts receivable	(86	)	121		(207	)	n.m.
Restructuring costs	1,266		765		501		65.5	%
Operating loss	(14,123	)	(7,652	)	6,471		84.6	%
Adjusted operating loss (1)	(12,499	)	(6,887	)	5,612		81.5	%
Finance expenses	9,368		9,082		286		3.1	%
Loss before income taxes	(23,491	)	(16,734	)	6,757		40.4	%
Income taxes expense	1,759		835		924		110.7	%
Net loss	(25,250	)	(17,569	)	7,681		43.7	%
Adjusted net loss (1)	(23,626	)	(16,870	)	6,756		40.0	%
Basic loss per share	(0.77	)	(0.54	)	0.23		42.6	%
Diluted loss per share	(0.77	)	(0.54	)	0.23		42.6	%
Adjusted diluted loss per share (1)	(0.72	)	(0.52	)	0.20		38.5	%
Weighted average number of shares - Basic	32,637,429		32,555,897		n/a		n/a
Weighted average number of shares - Diluted	32,637,429		32,555,897		n/a		n/a
Gross margin (2)	18.8	%	19.4	%	n/a		(60) bp
Adjusted gross margin (1)	18.9	%	19.4	%	n/a		(50) bp
Selling expenses as a percentage of revenue (3)	10.1	%	8.9	%	n/a		120 bp
General and administrative expenses as a percentage of revenue (4)	10.9	%	10.8	%	n/a		10 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

	First Quarters Ended
	March 31,		March 31,		Variation
	2025		2024		$			%
Revenue	215,858		212,690		3,168		1.5	%
Cost of sales	157,010		156,233		777		0.5	%
Gross profit	58,848		56,457		2,391		4.2	%
Selling expenses	27,592		25,371		2,221		8.8	%
General and administrative expenses	22,537		25,151		(2,614	)	(10.4	)%
Research and development expenses	4,615		4,729		(114	)	(2.4	)%
Impairment (reversal) loss on trade accounts receivable	(97	)	77		(174	)	n.m.
Restructuring costs	1,177		580		597		102.9	%
Operating profit	3,024		549		2,475		450.8	%
Adjusted operating profit (1)	4,201		1,129		3,072		272.1	%
Gross margin (2)	27.3	%	26.5	%	n/a		80 bp
Selling expenses as a percentage of revenue (3)	12.8	%	11.9	%	n/a		90 bp
General and administrative expenses as a percentage of revenue (4)	10.4	%	11.8	%	n/a		(140) 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 Home

	First Quarters Ended
	March 31,		March 31,		Variation
	2025		2024		$			%
Revenue	104,598		138,382		(33,784	)	(24.4	)%
Cost of sales	103,311		126,602		(23,291	)	(18.4	)%
Gross profit	1,287		11,780		(10,493	)	(89.1	)%
Adjusted gross profit (1)	1,645		11,780		(10,135	)	(86.0	)%
Selling expenses	4,787		5,791		(1,004	)	(17.3	)%
General and administrative expenses	6,958		7,954		(996	)	(12.5	)%
Research and development expenses	1,024		1,362		(338	)	(24.8	)%
Impairment loss on trade accounts receivable	11		44		(33	)	(75.0	)%
Restructuring costs	1		185		(184	)	(99.5	)%
Operating loss	(11,494	)	(3,556	)	7,938		223.2	%
Adjusted operating loss (1)	(11,135	)	(3,371	)	7,764		230.3	%
Gross margin (2)	1.2	%	8.5	%	n/a		(730) bp
Adjusted gross margin (1)	1.6	%	8.5	%	n/a		(690) bp
Selling expenses as a percentage of revenue (3)	4.6	%	4.2	%	n/a		40 bp
General and administrative expenses as a percentage of revenue (4)	6.7	%	5.7	%	n/a		100 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.

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 US$1.6 million for the three months ended March 31, 2025 (2024 – US$0.8 million). Refer to the section “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.

	First Quarters Ended
	March 31,		March 31,
	2025		2024
Gross profit	60,135		68,237
Adjustment for:
Restructuring costs recorded within gross profit	358		-
Adjusted gross profit	60,493		68,237
Adjusted gross margin (1)	18.9	%	19.4	%
(1) This is a non-GAAP financial ratio and it is calculated as adjusted gross profit divided by revenue.
	First Quarters Ended
	March 31,		March 31,
Dorel Home	2025		2024
Gross profit	1,287		11,780
Adjustment for:
Restructuring costs recorded within gross profit	358		-
Adjusted gross profit	1,645		11,780
Adjusted gross margin (1)	1.6	%	8.5	%
(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.

	First Quarters Ended
	March 31,		March 31,
	2025		2024
Operating loss	(14,123	)	(7,652	)
Adjustment for:
Total restructuring costs	1,624		765
Adjusted operating loss	(12,499	)	(6,887	)
	First Quarters Ended
	March 31,		March 31,
Dorel Juvenile	2025		2024
Operating profit	3,024		549
Adjustment for:
Restructuring costs	1,177		580
Adjusted operating profit	4,201		1,129
	First Quarters Ended
	March 31,		March 31,
Dorel Home	2025		2024
Operating loss	(11,494	)	(3,556	)
Adjustment for:
Restructuring costs	359		185
Adjusted operating loss	(11,135	)	(3,371	)

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.

	First Quarters Ended
	March 31,		March 31,
	2025		2024
Net loss	(25,250	)	(17,569	)
Adjustment for:
Total restructuring costs	1,624		765
Income taxes recovery relating to the above-noted adjustments	-		(66	)
Adjusted net loss	(23,626	)	(16,870	)
Basic loss per share	(0.77	)	(0.54	)
Diluted loss per share	(0.77	)	(0.54	)
Adjusted diluted loss per share (1)	(0.72	)	(0.52	)
(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.

	First Quarters Ended March 31,
	Consolidated									Dorel Juvenile									Dorel Home
	2025				2024					2025				2024					2025				2024
	$		%		$		%			$		%		$		%			$		%		$		%
Revenue of the period	320,456				351,072					215,858				212,690					104,598				138,382
Revenue of the comparative period	(351,072	)			(333,197	)				(212,690	)			(200,025	)				(138,382	)			(133,172	)
Revenue (decline) growth	(30,616	)	(8.7	)	17,875		5.4			3,168		1.5		12,665		6.3			(33,784	)	(24.4	)	5,210		3.9
Impact of varying foreign exchange rates	6,243		1.8		(266	)	(0.1	)		5,404		2.5		(293	)	(0.1	)		839		0.6		27		-
Organic revenue (decline) growth (1)	(24,373	)	(6.9	)	17,609		5.3			8,572		4.0		12,372		6.2			(32,945	)	(23.8	)	5,237		3.9
(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.