Dometic President and CEO Juan Vargues said the company recorded record net sales and operating profit in 2021.
“2021 became a new and important milestone for Dometic,” Vargues said. “We continued to successfully drive our transformational agenda and achieved all-time high net sales and operating profit despite several new pandemic breakouts, unprecedented supply chain constraints and raw material and freight cost increases during the year.”
In the fourth quarter, sales in Dometic’s Americas segment rose 23%, led by growth in power and control products and other applications.
“The improvement was driven by net sales growth, cost reductions, pricing and a positive margin contribution from acquired companies,” Dometic stated.
Still, climate-related products remained Dometic’s top category in the Americas, accounting for 45.8% of 2021’s total sales in the segment. Food and beverage products were next at 26.4% with other applications at 18.6%.
In all, Americas segment sales grew 34% in 2021 from the previous year.
“The improvement was driven by net sales growth, pricing, cost reductions, sales mix and a positive contribution from acquired companies,” Dometic stated. “This was partly offset by rising raw material prices and freight costs.”
Dometic made nine acquisitions in 2021, with Vargues saying end-use demand for flexible products supporting vehicle-based outdoor activities is expanding. The company’s distribution and service and aftermarket share of sales rose to 50% in 2021 from 39% in 2017.
“Further acquisitions, as well as divestments of non-strategic areas, are planned to further improve the mix and reduce the exposure to cyclicality stepwise,” the CEO said.
Vargues said Dometic remains optimistic about future demand. Order backlogs are at record levels while retail inventory remains at low levels. He said Dometic is implementing mitigating actions to improve global supply-chain challenges but it remains difficult to predict when the situation will stabilize.
“We are very proud of the results that the entire organization has achieved in a year during which strong market demand has been balanced with an extremely challenging supply situation impacting many industries,” he said. “We are optimistic about the long-term trends in the mobile living industry and will continue to drive our strategic agenda to deliver on our financial targets.”
