Dometic reported this week that net sales for the third quarter were Swedish Krona (SEK) 6,830 m (612 m USD), a decrease of -10. Profit for the quarter was SEK 412 m (37 m USD).
“We are pleased to announce the third quarter results with an improved EBITA margin before items affecting comparability of 14.3% and our second-best quarterly operating cash flow ever of SEK 2.1 b, despite the challenging macroeconomic situation and market conditions,” said Dometic President and CEO Juan Vargues. “The net debt to EBITDA leverage ratio improved sequentially to 2.9x and we are heading towards our target of around 2.5x.”
According to Vargues, “The situation in the service and aftermarket sales channel continues to improve gradually and organic net sales declined by 5% compared to a decline by 10% in the second quarter. Organic net sales in the distribution sales channel declined by 13% as retailers are rebalancing their inventories with a temporary negative impact on the Igloo business.
“Net sales in the OEM sales channel declined by 16% organically due to lower net sales in the marine segment and lower RV OEM net sales in Americas.”
The improved EBITA margin was driven by segments EMEA, global and APAC, Vargues said, due to selective pricing and cost reduction measures generating results.
“While RV production in the U.S. remains significantly below last year, segment Americas delivered a positive EBITA for the quarter supported by efficiency improvements and organic net sales growth in service and aftermarket. The Igloo business delivered a margin on a par with last year despite lower net sales,” Vargues continued.
“It is encouraging to see how our integration activities are generating results, and following several customer meetings introducing the 2024 mobile cooling portfolio, we feel highly optimistic about the future.”
For more on Dometic’s third quarter earnings report, click here.
