Scandinavian Outdoor Group member Dometic saw second-quarter earnings rebound from the impact of the Covid pandemic despite persistent supply-chain challenges.
The Stockholm-based specialist in products for mobile living said reported a 67 percent increase in net sales to SEK 5.6bn (€546m - $642m) against the 2020 period, which was hit hard by Covid lockdowns.
Operating profit before depreciation and amortization almost doubled to SEK 1.1bn (€107m - $126m), representing a margin of 19.8 percent, up from 15.1 percent a year ago.
The pipeline of potential future acquisitions remains strong, and the order backlog is at a record high for the period. Dometic remained 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,” it said.
Second-quarter net sales were boosted by price management and cost reductions, while there was a negative impact from currency effects, as well as from increasing raw material prices and freight costs.
“We continue to adapt our pricing to compensate for the increasing raw material prices and freight costs,” said chief executive Juan Vargues.
Dometic has been active in the acquisitions market, with six companies purchased so far this year. Four are specialists in mobile power provision, where market demand for sustainable and effective off-grid products is rapidly increasing as more people spend time outdoors using a vehicle or boat as their base.
“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,” Vargues said.