Dometic Group reported declines in the company’s 2023 fourth-quarter and full-year financial results.
The company’s American segment decreased sales by 20% compared with the 2022 fourth quarter. Full-year sales dropped 26% from 2022, largely due to lower RV OEM net sales. Operating profit declined 2.1% in 2023 compared with 2022 levels.
The American segment’s 2023 food and beverage net sales fell 20% compared with 2022 levels. Climate net sales fell 28% compared with 2022 while power and control net sales decreased 25.5% compared with 2022. Other applications’ net sales dropped 6.5% compared with 2022.
The lower net sales in the American RV and marine segments contributed to a 14% decline in OEM sales compared with 2022.
Dometic CEO and President Juan Vargues said the American segment margins are under pressure and below company expectations.
The company appointed Todd Seyfert as president for the American segment Jan. 9.
“Todd has a vast management experience from the outdoor industry,” Vargues said, “and I am convinced we will accelerate our transformation journey and drive efficiencies and margin improvements in the segment.”
According to Vargues, the mobile living industry’s long-term trends are strong, but short-term business is difficult to predict due to the macroeconomic situations and market conditions.
As the company looks to the future, Vargues said, “Our planning assumptions from the third quarter 2023 remain largely unchanged. We anticipate the recovery in demand in the service and aftermarket sales channel to continue.”
The company expects distribution sales to see a gradual recovery in the coming quarters as retail inventories decline. Vargues predicted OEM sales would remain sluggish in future quarters.
“In this environment we will continue to relentlessly drive our strategic agenda,” Vargues said, “to deliver on our targets, prioritize margins before volumes and, at the same time, remain agile to quickly respond to short-term market trends.”
Dometic enacted strategic changes worldwide, with cost reductions to guard margins and cash flow.
Vargues said, “We are very proud of the results that we have achieved in a very challenging 2023.”
