Sweden-based outdoor gear maker Dometic reported 2023 first quarter net sales of 7,289 million Swedish krona, which is a 3% decrease over the same period a year ago.
The company’s operating cash flow improved significantly to 294 million krona, supported primarily by sequentially reduced inventories, said CEO Juan Vargues.
Dometic reports its earnings in the Swedish krona (SEK) currency.
“The first quarter result 2023, with a solid double-digit EBITA margin despite extremely challenging market conditions and macroeconomic uncertainty, shows how our strategic initiatives are transforming Dometic into a more diversified and resilient company,” Vargues said. “RV industry production in the U.S. declined by 54% year to date, while high retailer inventory levels continued to affect our service and aftermarket business globally. In this environment, net sales for the quarter reached SEK 7,289 million (7,518) and both the marine and global segments reported organic net sales growth.
“We are optimistic about the long-term trends in the mobile living industry. However, it is difficult to predict how the current macroeconomic situation will impact the business in the short term. We anticipate a gradual recovery in demand in service and aftermarket over the coming quarters and continued stable development in the distribution sales channel. In the OEM sales channel, we foresee a gradual weakened demand over the coming quarters, with the exception of RV Americas, where we expect to see a stabilization in demand by the end of the year. In this environment, we will continue to drive our strategic agenda to deliver on our targets, while at the same time remaining agile to quickly respond to short-term market trends,” Vargues said.
