REPORT ON THE SECOND QUARTER 2018
- Net sales for the quarter totaled SEK 5,260 m (3,949); an increase of 33%, of which 9% organic, 3% currency translation and 21% M&A.
- Operating profit (EBIT) amounted to SEK 919 m (650), representing a margin of 17.5% (16.5%). Excluding SeaStar, the EBIT margin was 16.5%.
- There were no items affecting comparability in the quarter.
- Cash flow for the quarter was SEK 3 m (-29).
- Operating cash flow was SEK 943 m (570).
- Profit for the quarter was SEK 629 m (474).
- Earnings per share was SEK 2.13 (1.60).
FOCUS ON PROFITABILITY AND CASH FLOW IMPROVEMENTS
“I am pleased to conclude a second quarter where we performed well in capturing underlying market growth and improved EBIT margin in all regions. Total sales grew 33 percent of which 9 percent was organic, mainly driven by continued strong sales for RV and good development for CPV and Aftermarket. The EBIT margin improved by 1.0 percentage points, despite headwinds from raw material prices.
Operating cash flow increased by 65 percent compared with the same quarter last year. Leverage was at 3.4x at the end of the quarter negatively affected by currencies. In constant currency, leverage was at 3.2x. We expect to see a quick deleverage in the second half of the year.
Dometic has seen a strong first half of 2018, with organic growth of 9 percent and the EBIT margin has improved by 1.6 percentage points to 16 percent. Total sales were close to SEK 10 billion and EBIT of more than SEK 1,5 billion, making us a more robust company. Pricing initiatives have been successfully implemented, the EMEA region has done well in executing the profitability program activities and SeaStar has delivered according to expectations.
Juan Vargues President and CEO
PRESENTATION OF THE REPORT
Analysts and media are invited to participate in a telephone conference at 10.00 (CEST) July 18, 2018, during which President and CEO, Juan Vargues and CFO, Per-Arne Blomquist, will present the report and answer questions.
Sweden: +46 8 566 426 69
UK: +44 20 3008 9802
US: +1 855 831 5944
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: email@example.com
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, 2018
Dometic is a global market leader in branded solutions for mobile living in the areas of Climate, Hygiene & Sanitation, Food & Beverage, Power & Control and Safety & Security. 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 eleven countries and sell our products in approximately 100 countries. We have a global distribution and dealer network in place to serve the aftermarket. Dometic employs approximately 8,800 people worldwide, had net sales of SEK 14.0 billion in 2017 and is headquartered in Solna, Sweden.