Dometic Group announced the results of its fiscal third quarter.
The Swedish company posted net sales of SEK 7.567 billion ($692.4 million), a 37 percent increase compared with the year-prior quarter. Operating profit before items affecting comparability was SEK 1.057 billion ($96.74 million), a margin of about 14 percent.
Profit for the quarter was SEK 436 million ($39.9 million), and earnings per share were SEK 1.36 SEK. Cash flow for the quarter was SEK 387 million ($35.4 million). Operating cash flow was SEK 812 million ($74.3 million).
“In a complex and challenging market environment, we delivered substantial net sales growth of 37 percent, a solid EBITA margin before items affecting comparability of 14 percent, and an improved operating cash flow,” president and CEO Juan Vargues said in a statement. “Organic net sales declined by 6 percent mainly due to reduced service and aftermarket sales as retailers globally are rebalancing their inventory levels.”
Vargues said Dometic’s marine segment continued its strong performance, with organic net sales growth of 11 percent, and that the acquisitions the company made during 2021 and 2022 are contributing with profitable growth.
The company said inventory levels remain elevated because of long lead times and weaker demand in the service and aftermarket sectors, though it expects inventories to start trending down.
“We expect a gradual recovery of the demand in service and aftermarket … and a continued stable development in distribution,” Vargues said. “While being agile and closely monitoring and acting on short-term market evolution, we will continue to implement our strategic agenda to deliver on our targets.”
