Net sales for Dometic, which uses its home currency of the Swedish Krona, were SEK 4.86 billion, or about $579 million, in the first quarter, an increase of 16 percent over the same period a year ago. Its profit for the period was SEK 490 million, or $58.4 million.
The sales figures included organic growth of 22 percent, the company said.
“The positive trends in the mobile living industry and strong market demand for Dometic’s products and solutions continued into the first quarter,” said Juan Vargues, president and CEO. “We continue to add capacity to our supply chain to meet strong customer demand and the order backlog remains substantially higher than we have seen historically for the same period. However, global shortages of critical components and freight capacity continue to impact us with longer than normal lead-times.”
Vargues added, “Profitability was also positively impacted by price management, cost reductions and lower tariff costs, an effect of our decisions to transfer part of our manufacturing from China to Mexico.”
He also said that the introduction of a customer-focused segment of the business was paying off, leading to a deeper understanding of end user needs, and to greater innovation. “This is achieved by assigning dedicated teams to the various end markets, and via closer relationships with end users,” he said.
The global company saw profits in all of the regions it does business in, it said, with the biggest profit margins being in the Americas.
“As proof of our progress, Dometic was awarded the ‘Fastest Growing Equipment Accessories Brand in the U.S. Outdoor Industry’ by U.S. data analytics company NPD Group,” the company said. “Our new B2C platform was successfully launched in the U.S. and net sales through our B2C channel have more than doubled since.”
The company’s statement also noted Dometic’s recent acquisition of Valterra Products, which it said “will strengthen our service and aftermarket position in North America and increase our presence on the fast-growing market for mobile solar power solutions. The transaction is expected to close during the second quarter of 2021.”
