Juan Vargues, Dometic president and CEO, touted the company’s 2021 growth strategy as boosting aftermarket sales share at the global supplier.
Vargues said the supplier’s strategy of transforming Dometic into a more consumer-oriented company with lower sales cyclicality continued. Dometic has made eight acquisitions in 2021, including purchases of Cadac International and Igloo in September.
“The sales channel mix is strengthening, and the share of distribution and service and aftermarket was 48% over the last 12 months, compared to 39% for the same period in 2017,” Vargues said. “Our eight acquisitions this year to date, all focusing on distribution and service and aftermarket customers, will help to further accelerate the pace of this transformation.”
The global moves come as Dometic works to increase its OEM share in the RV market.
“We are continuously optimistic about the demand outlook for forthcoming quarters,” Vargues said. “Our order backlog is record high for the period and retail inventory levels are low across all vertical end markets.”
Supply remains uncertain and Vargues said it would be difficult to predict when material supplies stabilized. Margins were adversely impacted in Dometic’s third quarter by supply chain disturbances, rising raw material prices and freight costs, he said.
“We are continually adjusting our pricing to compensate for higher costs and safeguard profitability,” Vargues said. “Compared to a year ago we have increased investments in sales and marketing to drive growth in new strategic areas.”
Dometic’s product launches in the third quarter included a number of marine industry items. The supplier continues work to reduce the number of SKUs. Vargues said the number of SKUs has been reduced by 59% since 2018.
“We are optimistic about the long-term trends in the Mobile Living industry,” he said, “and will continue to drive our strategic agenda to deliver on our financial targets.”
