IMPROVED EBITA MARGIN AND STRONG CASH FLOW
THIRD QUARTER 2023
- Net sales were
SEK 6,830 m (7,576); a decrease of -10%, of which -12% was organic growth. -
Operating profit (EBITA) before items affecting comparability was
SEK 973 m (1,057), corresponding to a margin of 14.3% (14.0%). -
Operating profit (EBIT) was
SEK 788 m (575), corresponding to a margin of 11.5% (7.6%). -
Profit for the quarter was
SEK 412 m (436). -
Earnings per share were
SEK 1.29 (1.36). Adjusted earnings per share wereSEK 1.71 (2.53). -
Cash flow for the quarter was
SEK -1,961 m (488). A bond ofEUR 300 m was repaid using cash at hand. Operating cash flow wasSEK 2,125 m (812). - Net debt to EBITDA leverage ratio at the end of the period was 2.9x (3.0x), compared to 3.2x at end of the second quarter 2023.
CEO COMMENT
"We are pleased to announce the third quarter results with an improved EBITA margin before items affecting comparability of 14.3 percent (14.0) and our second best quarterly operating cash flow ever of
Net sales in the quarter totaled
The improved EBITA margin was driven by segments EMEA, Global and APAC, where selective pricing and cost reduction measures are generating results. While RV production in the US remains significantly below last year, segment
Segment Marine saw organic net sales decline by 15 percent due to lower industry boat production. After three years of strong organic growth, we experienced a slowdown in the quarter. The robust EBITA margin of 23.8 percent (25.7) shows how continuous efficiency improvements and investments in product innovation are generating results. Net sales in the Marine Service & Aftermarket sales channel were stable giving further resilience to the EBITA margin.
Our short-term focus on adjusting capacity and improving cash flow is generating results and operating cash flow improved significantly supported by continued inventory reductions. Compared to a year ago, inventories have declined by more than
The innovation index improved sequentially to 16 percent compared to 15 percent in the second quarter. Our short-term focus on reducing inventories, by driving sales on existing products, is having a temporary negative impact on the index. The pipeline of new products is robust and we expect to see progress towards our innovation index target of 25 percent as inventories of existing products are sold. We are increasing product development investments, most specifically in strategic structural growth areas such as Marine Steering Systems, Mobile Power Solutions and Mobile Cooling. In addition we are strengthening our organization around Sustainability, and the Sustainability KPIs are progressing towards our 2024 targets.
The long-term trends in the Mobile Living industry are strong, however it remains difficult to predict how the current macroeconomic situation and market conditions will impact the business in the short term. We anticipate the recovery in demand in the Service & Aftermarket sales channel to continue. In the Distribution sales channel we expect a somewhat softer demand for a few quarters as retailers are re-balancing their inventories, and expect the positive margin development year-on-year in Distribution to continue. In the OEM sales channel we foresee a continued gradual weakening in demand over the coming quarters, with the exceptions of RV Americas, where we expect to see a stabilization by the end of the year and CPV where we expect to see continued good demand.
While we will continue to be impacted by normal sales seasonality, the results in the last quarters show that we are transforming Dometic into a more diversified, effective and resilient consumer-oriented company. We will continue to relentlessly drive our strategic agenda to deliver on our targets, prioritize margins before volumes, and at the same time remain agile to quickly respond to short-term market trends."
PRESENTATION OF THE REPORT
Analysts and media are invited to participate in a telephone conference at 10.00 (CEST)
Webcast link: https://dometic.videosync.fi/2023-10-26-q3-2023/register
To participate in conference call to ask questions
Those who wish to participate in the conference call to ask questions in connection with the webcast are welcome to register on the link below. After the registration you will be provided phone numbers and a conference ID to access the conference.
Registration link: https://events.inderes.se/teleconference/?id=100376
Webcast URL and presentation are also available at https://www.dometicgroup.com/en/investors
This information is information that
FOR FURTHER INFORMATION, PLEASE CONTACT
Rikard Tunedal, Head of Investor Relations
Phone: +46 730 56 97 35, Email: rikard.tunedal@dometic.com
OM DOMETIC
Dometic är världsledande inom lösningar för det mobila livet. Miljontals människor runt om i världen använder Dometics produkter i frilufts-, hem- och professionella applikationer. Vår drivkraft är att skapa smarta, hållbara, och tillförlitliga produkter med en outstanding design för frilufts- och mobil livsstil inom områdena Mat & Dryck, Klimat,
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