Dometic sees major growth in sales and profit
Outdoor equipment manufacturers Dometic have announced an increase in sales in Q1 2018 of 29 percent and an improvement in profits of 27 percent over the same quarter last year.
“Dometic had a positive start to the year, with our efficiency and pricing initiatives beginning to generate results. Sales were strong, despite fewer working days due to Easter and cold weather in Americas and EMEA. Total sales growth was 29 percent, of which 10 percent was organic. The EBIT margin grew by 2.3 percentage points, whereof 0.4 percentage points were contributed by SeaStar. The integration of SeaStar is progressing according to plan and performance is in line with expectations.
Our short-term priorities are to improve margins through further efficiency gains, compensate the commodity cost increases through pricing, focus on cash flow and deleveraging.
Strategically, we are currently emphasizing three areas, growth, innovation and competitive cost base. We have initiated a number of activities to support further growth and improved profitability. During the quarter we appointed a new CTO; an important step as part of our ambition to improve process ownership and increase speed and efficiency in product development and innovation.
The outlook for our combined businesses remains positive with an estimated organic growth in line with our target of 5 percent. With the acquisition of SeaStar, combined with continued efficiency improvements, we are aiming at reaching our target of 15 percent EBIT margin during 2018. Leverage is expected to be around 2.5x by the end of 2018.