American-based Dorel Group has reported its Q4 and 2018 year-end results, with Dorel Juvenile – home of brands such as Maxi-Cosi, Bébé Confort and Quinny – showing a slight decline, despite organic revenue growth.
Revenue for Dorel Juvenile in Q4 was US$241.6 million, up 1% from last year’s figures, while revenue for 2018 as a whole was US$932.1 million, an increase of 1.1% from 2017.
Organic revenue improved 4.1% in Q4 and 0.4% overall, excluding the impact of foreign exchange rate changes. This was most notable in the US and Brazil and was partially offset by declines in Dorel Juvenile’s other markets, including the UK.
Dorel president and ceo, Martin Schwartz, put these ‘disappointing’ results down to being: “affected by lower than expected industry-wide consumer demand over the holiday season and the on-going changes in the consumer products industry. We are in the process of actively addressing these realities.”
A significant increase in research and development expenses over Q4 were a result of a greater number of product launches in 2018 compared to 2017. Higher spending was a result of increased product development following the launch of new product across a range of categories and price points.
“An improvement is predicted in profit revenues for Dorel Juvenile in 2019, buoyed by growth in sales across the majority of our markets,” continued Martin, addding that revenue increases are expected in North America and Europe: “on the strength of our new product introductions and our market-leading brands.”
For 2019, continued growth is excpected across Latin American markets inlcuding Brazil, Peru and Mexico, while Dorel Juvenile China is also expected to be a positive contributor.
