Dometic reported sales in the fourth quarter of 5,542 million Swedish kronor (€532.0m-$593.9m) , an increase of 32 percent on the previous year, as management expressed optimism on the demand outlook in coming quarters but warned about persistent clouds on the supply chain front.
Sales growth at the Swedish specialist in products for mobile living continued to be driven largely by acquisitions and came despite “unprecedented” supply chain constraints and higher raw material and freight costs, which has led the company to increase its own prices. Organic sales growth in the fourth quarter stood at just 2 percent.
Ebitda rose to SEK 771 million (€74.0m-$82.6m) from SEK 701 million, as the Ebitda margin fell to 13.9 percent from 16.6 percent. Ebit before items affecting comparability rose to SEK 507 million(€48.7m-$54.3m) from SEK 466 million, with the adjusted Ebit margin narrowing to 9.2 percent from 11.1 percent. Dometic swung to a net profit of SEK 197 million (€18.9m-$21.1m) in the quarter from a loss of SEK 160 million the year earlier.
Margins during the quarter were impacted by increased sales and marketing investments to support new strategic areas, while its cost base in the fourth quarter of 2020 had been low due to the Covid-19 related lockdowns.
In the last three months of 2021, Dometic closed the acquisition of Igloo, the U.S. manufacturer of cooling boxes and drinkware, and Cadac International, a provider of premium barbecues and accessories to the vehicle-based outdoor market. In total, Dometic completed eight acquisitions last year and announced one more.
Supported by acquisitions, “the sales channel mix continues to improve in favor of less cyclical sales channels,” said CEO Juan Vargues. “Further acquisitions, as well as divestments of non-strategic areas, are planned to further improve the mix and reduce the exposure to cyclicality stepwise.”
For the full year, sales grew to SEK 21,516 million (€2,064.5m-$2,304.2m) from SEK 16,207 million the year earlier, reflecting organic growth of 23 percent. Ebitda grew to SEK 3,775 million (€362.2m-$404.4m) from SEK 2,669 million and the EBITDA margin widened to 17.5 percent from 16.5 percent. Adjusted Ebit rose to SEK 2,979 million (€285.9m-$319.1m) from SEK 1,939 million in 2020, as the adjusted Ebit margin increased to 13.8 percent from 12.0 percent. Net profit jumped to SEK 1,726 million (€165.7m-$184.9m) from SEK 451 million.
Vargues added that the company continues to be optimistic about the demand outlook in coming quarters. “Our order backlog is record-high and retail inventory levels are low across all vertical end markets. The global supply chain disturbances impacting many industries remain challenging. While we are implementing mitigating actions and see improvements in several areas, it is still difficult to predict when the situation will fully stabilize,” he said.