REPORT ON THE FOURTH QUARTER 2017
- Net sales totaled SEK 3,252 million (2,786); an increase of 17%, of which 16% was organic growth.
- Operating profit (EBIT) before items affecting comparability amounted to SEK 310 million (210), representing a margin of 9.5% (7.5%), including a net positive effect of SEK 17 million relating to the US class action legal cases of which SEK 28 million was reimbursement.
- Operating profit (EBIT) amounted to SEK 191 million (173), including items affecting comparability amounting to SEK -119 million, related to SeaStar Solutions transaction costs and the EMEA profitability improvement program.
- Cash flow for the quarter totaled SEK -612 million (435). Operating cash flow totaled SEK 536 million (352).
- Profit for the quarter was SEK 277 million (302).
- Earnings per share: SEK 0.94 (1.02).
- Proposed dividend of SEK 2.05 (1.85) per share for 2017.
STRONG FINISH TO 2017
“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.
We summarize a strong year and fourth quarter. During my initial period as CEO of Dometic I have met with professional and devoted teams with a true dedication for the business. Together, I am fully convinced that we will take the company to the next level.”
Juan Vargues President and CEO
PRESENTATION OF THE REPORT
Analysts and media are invited to participate in a telephone conference at 10.00 (CET) February 8, 2018, during which President and CEO, Juan Vargues and CFO, Per-Arne Blomquist, will present the report and answer questions. To participate in the webcast/telephone conference, please dial in five minutes prior to the start of the conference call:
|Sweden:||+46 8 566 426 69|
|UK:||+44 20 300 898 02|
|US:||+1 855 753 2235|
Webcast URL and presentation are available at www.dometic.com.
FOR FURTHER INFORMATION, PLEASE CONTACT
Johan Lundin, Head of Investor Relations & Communications
Phone: +46 8 501 025 46, Email: firstname.lastname@example.org
This information is information that Dometic Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on February 8, 2018
Dometic is a global market leader in branded solutions for mobile living in the areas of Climate, Hygiene & Sanitation and Food & Beverage. Dometic operates in the Americas, EMEA and Asia Pacific, providing products for use in recreational vehicles, trucks and premium cars, pleasure and workboats, and for a variety of other uses. Dometic offer products and solutions that enrich people’s experiences away from home, whether in a motorhome, caravan, boat or a truck. Our motivation is to create smart and reliable products with outstanding design. We operate 28 manufacturing/assembly sites in nine countries, sell our products in approximately 100 countries and manufacture approximately 85% of products sold in-house. We have a global distribution and dealer network in place to serve the aftermarket. Dometic employs approximately 8,200 people worldwide, had net sales of SEK 14.0 billion in 2017 and is headquartered in Solna, Sweden.