Lifestyle changes aid Dometic sales
Q4 of 2017 was particularly good for outdoor equipment supplier Dometic which saw net sales at SEK 3,252 million (up from SEK2,786m in the same quarter of 2016 making an increase of 17%, of which 16% was organic growth. Operating profit (EBIT) before items affecting comparability amounted to SEK 310 million (up from SEK210m).
Juan Vargues President and CEO“ of the company commented '2017 was a good year for Dometic and we saw a positive development in all our main businesses. We have maintained focus on our profitable growth strategy and intensified our efforts on cost control. The EMEA organization launched a profitability program focusing on cost reductions, we have progressed as planned with our manufacturing footprint optimization in APAC and the efforts on logistics and distribution have improved profitability in Americas. Total sales growth for the full year was 13 percent, of which 12 percent was organic and EBIT improved by 15 percent.
We conclude a fourth quarter with strong organic growth in all three regions. The quarter was affected by onetime effects from SeaStar Solutions transaction costs of SEK 58 million, EMEA profitability improvement program costs of SEK 61 million and the reimbursement of incurred legal costs related to the class action cases in Florida and California of SEK 28 million.
The global lifestyle trends and the positive economic situation and consumer confidence on main markets create a good foundation for continued growth. We are committed to reach our financial targets. 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 Solutions, 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. The Board of Directors will propose a dividend payout of SEK 2.05 per share at the annual shareholder’s meeting, corresponding to a payout ratio of 40.6 percent of net profit.'