Sales decline continues for Dometic

Dometic saw sales decline by 8% in the second quarter of 2024 with an operating profit of SEK 903m, down from SEK 985m.

The sales decline was smaller than the 12% decline seen in the first quarter of 2024.

The mobile living manufacturer has experienced persistently sluggish market conditions, high interest rates and lower consumer spend.

“While the uncertain market situation is making customers more cautious than before in regard to inventory levels, organic net sales in the Service and Aftermarket sales channel recovered as expected, reaching -1% compared to the same quarter last year,” said president and CEO Juan Vargues.

“Net sales in the distribution sales channel declined 2% organically, a clear improvement compared to the first quarter.”

Dometic’s Mobile Cooling Solutions segment saw strong end-user demand for products with fallen retailer inventories.

Demand in the OEM (Original Equipment Manufacturer) sales channel remained weak and organic net sales declined 17%.

The margin improvement was supported by new product launches, sales mix, cost reductions and price management.

The Land Vehicles EMEA segment continued to report better margins than the same quarter last year and both the Marine and Land Vehicles APAC segments delivered robust margins despite lower net sales in the OEM sales channel.

The company is continuing its research and development investments in strategic growth areas, and continues to launch new, portable products for outdoor purposes.

Juan added: “Long-term trends in the Mobile Living industry are strong, however it is difficult to predict how the current macroeconomic situation and market conditions, including delayed interest rate decreases and changed customer purchasing patterns, will affect the business in the short term.”

Dometic expects to see a continued gradual recovery in demand in the Service & Aftermarket and Distribution sales channels with continued weak short-term demand in the OEM sales channel.