REPORT ON THE FIRST QUARTER 2018
- Net sales for the quarter totaled SEK 4,442 m (3,443); an increase of 29%, of which 10% organic, -2% currency translation and 21% M&A.
- Operating profit (EBIT) amounted to SEK 638 m (418), an increase of 53% including SeaStar. This represents a margin of 14.4% (12.1%). Excluding SeaStar, EBIT increased by 26%.
- There were no items affecting comparability in the quarter.
- Cash flow for the quarter improved to SEK -116 m (-384).
- Operating cash flow improved to SEK -27 m (-44).
- Profit for the quarter increased with 27%, to SEK 375 m (296).
- Earnings per share increased by 27%, to SEK 1.27 (1.00).
HEALTHY START TO 2018
“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.
Juan Vargues President and CEO
PRESENTATION OF THE REPORT
Analysts and media are invited to participate in a telephone conference at 10.00 (CEST) April 26, 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:
||+46 8 566 42669|
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|US:||+1 855 831 5945|
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 CEST on April 26, 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, 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 8,800 people worldwide, had net sales of SEK 14.0 billion in 2017 and is headquartered in Solna, Sweden.