RV supplier Dometic reported net sales in the second quarter of 5.57 billion SEK, or $642 million, a record for the quarter.
The company’s second quarter profit was 560 million SEK, or $64 million.
“Increased net sales, price management and cost reductions made a positive contribution to profitability, while there was a negative impact from currency effects, as well as from increasing raw material prices and freight costs,” said Juan Vargues, president and CEO. “We continue to adapt our pricing to compensate for the increasing raw material prices and freight costs. …
“On July 2, we announced our sixth acquisition this year. Four of the acquisitions are in the area of mobile power solutions, where market demand for sustainable and effective off-grid products is rapidly increasing as more and more people spend time outdoors using a vehicle or boat as their base. We strive to lead the development in this fast-growing market, and combined with our own developed offering, these acquisitions give us an extensive product portfolio, additional know-how, scale and a larger distribution network in the major markets around the world.
“We continue to look for opportunities to expand in the fast-growing ‘vehicle-based activity’ outdoor market, and thereby increase our exposure to the consumer driven, repetitive and profitable distribution business, as well as to service and aftermarket opportunities. The pipeline of potential future acquisitions remains strong, and during the quarter, we successfully performed a directed share issue to support continued acquisition activities.
“The cost reduction program continues with high activity. One additional site and 26 employees were affected during the quarter.
“Our efforts to drive the sustainability agenda toward a more resource-efficient industry continues at pace. A further three of our sites switched over to renewable electricity supply in the second quarter, and we are fully committed to our target of reducing CO2 emissions in relation to net sales by 50 percent by 2030.
“Our order backlog is record high for the period,” Vargues continued, “and we are optimistic about the demand outlook for forthcoming quarters, despite current uncertainty caused by global shortages of critical components, freight capacity and new pandemic breakouts. Retail inventory levels are low across all vertical end markets, and we believe that the inventory restocking period will be extended due to the global shortages.”
