Dometic reports strong third quarter

Global RV accessories and components producer Dometic has reported strong market demand and improved profitability in its financial report of the third quarter of 2020.

The company, which is headquartered in Sweden, saw a slight 3 per cent drop in net sales for the quarter, but that was countered by 3 per cent organic growth and a huge amount of orders which led to a record backlog. Dometic also reported an operation profit before depreciation and amortization of 867million Swedish Kroner (US$ 96million) – a margin of 19.4 per cent.

“We experienced a rapid recovery in the third quarter after a difficult and unprecedented second quarter,” said Dometic president and CEO, Juan Vargues.

Dometic president and CEO, Juan Vargues.

“After a fast and successful reduction of our cost base in the second quarter, customer demand increased sharply in June and July resulting in certain constraints in our supply chain and a subsequent effect on net sales. Additionally, pro-active measures to contain COVID-19 cases in some of our American factories impacted net sales negatively. We will continue to increase capacity to meet the strong demand we foresee in the coming quarters.”

Dometic sited one reason for these strong figures as a further increase in end-user appetite for staycations within their own countries and for outdoor activities – noth of which are driving demand for Dometic products. The company reported has reported a 70 per cent growth in visitor numbers to its website year-to-date so far.

Juan added: “We are very proud of the strong results that the entire organization has achieved, particularly considering the challenges created by the unprecedented lockdowns we experienced worldwide in the second quarter and the business acceleration we saw in the third quarter. While the COVID-19 pandemic continues to create uncertainty, we foresee the coming quarters to be strong considering the existing market demand, the considerably lower retail inventory levels compared to historical levels and the substantial growth in orders booked that we have experienced in recent months. As a leading outdoor company, Dometic is well positioned for continued growth and margin expansion. We are confident about the long-term positive trends in the Mobile Living Industry and remain fully committed to delivering on our strategic direction and financial targets.”