Dometic President and CEO Juan Vargues reported record sales and profits in 2021 despite the company facing an “extremely challenging supply chain.”
Dometic’s net sales grew 33% from 2020 and operating profits reached record highs, the company reported. Dometic’s Americas segment reported a focus on securing customer deliveries and price management to safeguard profitability as raw material prices and transport costs increased.
Dometic made two 2021 acquisitions in the RV industry, buying Valterra Products and Zamp Solar. Dometic stated about two-thirds of Valterra’s sales come in the aftermarket, adding the acquisition increased the supplier’s presence in mobile solar power solutions through Go Power!
Zamp Solar derived about half its 2021 sales in the distribution and aftermarket categories, Dometic reported. Dometic stated Zamp Solar placed a strong focus on expanding its outdoor business during the year.
Within the Americas segment, net sales rose 34% from 2020, with organic net sales growing 20%. Climate products account for 46% of the segment’s sales, followed by food and beverage (26%), power and control (9%) and all other products (19%).
“Continued cost reduction is a top priority to support margin expansion,” Dometic stated.
The company added the NPD Group, a New York-based retail research company, recognized Dometic as the fastest-growing outdoor equipment brand in 2021.
Companywide, Vargues said Dometic’s strategy is yielding results and showing clear improvements across all focus areas. Aftermarket sales continued to grow as a portion of Dometic’s overall sales. Vargues said aftermarket’s share of Dometic sales in 2021 reached 55%, up from less than 40% in 2017.
New products continued to connect with consumers, he said. The company’s innovation index, measuring net sales from new products, grew to 26%, up from 22% in 2020 and above the company’s 25% target.
Worldwide, Dometic made nine acquisitions in 2021, growing its workforce by 40% to more than 9,000 employees.
“To implement our strategy and transform Dometic,” Vargues said, “we need to have highly engaged employees contributing with their own initiatives and driving the execution.”
During the year, Dometic rolled out a leadership program. Vargues said the program is intended to support company leaders and drive change management across the organization.
Strong product demand continued in 2021, Vargues said, driven by continued and accelerated appetites for staycations and outdoor activities.
“Supply chain and price management have been key activities in a market where component shortages, increased raw material prices and transport lead times and costs have created challenges,” he said.
