REPORT ON THE SECOND QUARTER 2017
Solid Q2 with 9% organic growth
- Net sales for the second quarter totaled SEK 3,949 million (3,461); an increase of 14%, of which 9% was organic growth.
- Operating profit (EBIT) before items affecting comparability amounted to SEK 650 million (584), representing a margin of 16.5% (16.9%), including SEK 29 million relating to US class action legal costs.
- Operating profit (EBIT) amounted to SEK 650 million (573).
- Cash flow for the period totaled SEK -29 million (309). Operating cash flow totaled SEK 570 million (511).
- Profit for the second quarter was SEK 474 million (453).
- Earnings per share: SEK 1.60 (1.53).
SOLID Q2 WITH 9% ORGANIC GROWTH
“We can conclude a strong second quarter, driven by strong execution on internal initiatives as well as favorable market conditions. We continue to show good organic growth of 9% out of the total 14%. Underlying profitability developed well, with an EBIT margin of 17.2% (16.9%) if excluding costs related to the class action legal activities in the US.
Cash generation was strong in the quarter and leverage is now at 1.7, which creates a good platform for continued M&A activities. I am pleased to see that the integration of Oceanair and IPV goes according to plan. Finding more acquisition growth opportunities in attractive business segments is a top priority.
The last year’s efforts to improve logistics and distribution have yielded good results in both Americas and EMEA. Another focus area right now is to manage a combination of productivity improvements and optimizing manufacturing capacities in a high demand situation. All regions have action plans, one example being the recently announced consolidation in China.
All in all, we summarize a strong first half of 2017. The outlook for our businesses remains unchanged and we have a full pipeline of activities to take us to our financial targets”.
Roger Johansson, President and CEO
PRESENTATION OF THE REPORT
Analysts and media are invited to participate in a telephone conference at 10.00 (CEST) July 18, 2017, during which President and CEO, Roger Johansson 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 (0)8 566 426 69
UK: + 44 (0)20 300 898 08
US: + 1 855 831 59 48
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
This information is information that Dometic Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CEST on July 18, 2017
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 22 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 6,500 people worldwide, had net sales of SEK 12.4 billion in 2016 and is headquartered in Solna, Sweden.