2024 was a ‘difficult year’ with challenging market conditions for Dometic with net sales declining 10% in the fourth quarter.
Organic net sales declined 13% and operating profit (EBIT) was SEK -964m (242), corresponding to a margin of -20.1% (4.5%).
Sales in the service and aftermarket section were down 9% with consumers focusing on repairing equipment instead of upgrading or replacing it.
In addition, Dometic says customers remained cautious of building inventories in a seasonally slower quarter.
Net sales in the distribution segment declined by 6%, an improvement compared to a double-digit decline in the third quarter supported by an increase in Dometic’s new Mobile Cooling Solutions products.
Net sales in the OEM (original equipment manufacturer) sales channel were down 18% with declines in all segments.
However, compared to the third quarter, there was a smaller decline in OEM net sales across the Land Vehicles Americas and Marine segments.
The company announced a global restructuring programme in December 2024 which will begin to come into effect in the first quarter of 2025.
As we enter 2025 it is difficult to predict how the current uncertain macroeconomic situation and market conditions will impact demand.
Juan Vargues
The restructuring programme includes portfolio changes and structural cost reductions and is expected to have an annual positive impact on EBITA estimated to SEK 750m when it has been fully implemented at the end of 2026.
“2024 was a difficult year impacted by restrained consumer spending and customers continuing to be cautious with their inventory levels,” said Juan Vargues, Dometic president and CEO.
“In this environment we have continuously been adapting our capacity, and we are today 15% fewer FTEs (Full Time Equivalents) than a year ago.”
Juan continued: “Despite the challenging market conditions, and thanks to the efforts and dedication of our employees around the globe, we have continued to take several important steps on our strategic transformation journey in 2024.
“As we enter 2025 it is difficult to predict how the current uncertain macroeconomic situation and market conditions will impact demand, particularly in the short term.”
And he explained that retailer inventory levels are below last year in all sales channels, with demand expected to gradually recover in the Service and Aftermarket and Distribution sales channels during the first half of 2025.
The company expects to remain under pressure during the first half of the year in the OEM sales channel.
