Sweden’s Dometic Group has reported net sales of SEK 3,461m for the second quarter of 2016 – an increase of 8%, of which 9% was organic growth. Net sales for the January-June 2016 period totalled SEK 6,460m – a rise of 6%, of which 7% was organic growth.
The news comes just six months after Dometic became a public company by listing its shares on the Nasdaq in Stockholm.
“We are pleased to deliver sales growth in seven out of eight businesses for the second quarter, which is seasonally the strongest quarter of the year,” says Roger Johansson, Dometic president and CEO.
“Organic growth amounted to 9% and the EBIT margin before items affecting comparability improved to 16.9% (15.1%).
“We are seeing healthy underlying development in all our regions,” he adds. “Cash flow was robust, with debt leverage now at 2.1x compared to 2.7x following the IPO in November last year.”
As well as providing marine air-conditioning, refrigeration and ventilation systems for the OEM and aftermarkets, Dometic also supplies product to the RV (recreational vehicle) and CPV (commercial and passenger vehicle) sectors, amongst others.
“Growth in the pleasure boat sector has shown signs of a slowdown in recent months compared to the beginning of the year,” says Johansson, referring to the Americas. “The underlying development of the marine OEM business was flat year-over-year. However, reported sales saw a decline in the quarter due to the transfer of sales to customers in APAC in 2015.”
In the EMEA, Dometic’s marine OEM business reported an increase in addition to growth in its three main territories – the UK, France and Italy. The company says it has also gained one new large account in Germany. The aftermarket reported an overall increase in sales, with the most significant growth in the CPV, RV and marine aftermarket.
Dometic’s OEM marine business in Asia-Pacific reported a sales increase compared to last year. However, a large share of the increase was related to the transfer of sales from the Americas region to APAC customers, which took place in the second half of 2015. Sales to these customers are now recorded as Asia-Pacific sales and no longer included in Americas.
“The global outlook for the RV markets remains positive, with Europe showing particularly strong momentum and the US continuing its steady development," says Johansson. "All in all, in light of the current performance and conditions in our markets, we remain confident for the rest of 2016.”