FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2023
===== SIDA 1 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 1
THIRD QUARTER 2023 FIRST NINE MONTHS 2023
• Net sales were SEK 6,830 m (7,576); a decrease of -10%, of
which -12% was organic growth.
• Operating profit (EBITA1)) before items affecting comparability2)
was SEK 973 m (1,057), corresponding to a margin of 14.3%
(14.0%).
• Items affecting comparability were SEK -33 m (-326).
• Operating profit (EBITA1)) was SEK 940 m (731), corresponding
to a margin of 13.8% (9.6%).
• Operating profit (EBIT) was SEK 788 m (575), corresponding to a
margin of 11.5% (7.6%).
• Profit for the quarter was SEK 412 m (436).
• Earnings per share were SEK 1.29 (1.36). Adjusted earnings per
share3) were SEK 1.71 (2.53).
• Cash flow for the quarter was SEK -1,961 m (488). A bond of
EUR 300 m was repaid using cash at hand. Operating cash flow
was SEK 2,125 m (812).
• Net sales were SEK 22,448 m (23,591); a decrease of -5%, of
which -12% was organic growth.
• Operating profit (EBITA1)) before items affecting comparability2)
was SEK 2,997 m (3,501), corresponding to a margin of 13.4%
(14.8%).
• Items affecting comparability were SEK -94 m (-499).
• Operating profit (EBITA1)) was SEK 2,904 m (3,002),
corresponding to a margin of 12.9% (12.7%).
• Operating profit (EBIT) was SEK 2,440 m (2,553), corresponding
to a margin of 10.9% (10.8%).
• Profit for the period was SEK 1,281 m (1,757).
• Earnings per share were SEK 4.01 (5.50). Adjusted earnings per
share3) were SEK 5.26 (7.78).
• Cash flow for the period was SEK 223 m (-459). Operating cash
flow was SEK 4,718 m (1,151).
• Net debt to EBITDA leverage ratio4) at the end of the period was
2.9x (3.0x), compared to 3.2x at end of the second quarter 2023.
FINANCIAL OVERVIEW
Q3 Q3 YTD YTD LTM FY
SEK m 2023 2022 2023 2022 2023 2022
Net sales 6,830 7,576 22,448 23,591 28,620 29,764
Operating profit (EBITA¹⁾) before items affecting comparability²⁾ 973 1,057 2,997 3,501 3,428 3,931
% of net sales 14.3% 14.0% 13.4% 14.8% 12.0% 13.2%
Operating profit (EBITA¹⁾) 940 731 2,904 3,002 3,301 3,399
% of net sales 13.8% 9.6% 12.9% 12.7% 11.5% 11.4%
Operating profit (EBIT) 788 575 2,440 2,553 2,676 2,789
% of net sales 11.5% 7.6% 10.9% 10.8% 9.3% 9.4%
Profit for the period 412 436 1,281 1,757 1,308 1,784
Earnings per share, SEK 1.29 1.36 4.01 5.50 4.09 5.58
Adjusted earnings per share, SEK³⁾ 1.71 2.53 5.26 7.78 5.80 8.32
Cash flow for the period -1,961 488 223 -459 556 -127
Operating cash flow 2,125 812 4,718 1,151 5,834 2,268
Net debt to EBITDA leverage ratio⁴⁾ 2,9x 3,0x 2,9x 3,0x 2,9x 3.0x
RoOC, excluding goodwill and trademarks 20.3% 27.3% 20.3% 27.3% 20.3% 23.1%
⁴⁾For specification see note 9
See definitions of measures and KPIs at the end of the report. See detailed reconciliation tables on www.dometicgroup.com/investors for reconciliation of non-IFRS measures to IFRS
²⁾See Note 6 Items affecting comparability
³⁾Excludes the impact from Amortization of acquisition-related intangible assets and items affecting comparability , for specification see note 8
¹⁾Before Amortization of acquisition-related intangible assets
QUARTERLY REPORT
Q3 2023
Solna, October 26, 2023
IMPROVED EBITA MARGIN AND STRONG CASH FLOW
===== SIDA 2 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 2
CEO COMMENTS
We are pleased to announce the third quarter results with an improved EBITA1) margin
of 14.3 percent (14.0) and our second best quarterly operating cash flow ever of SEK
2.1 b (0.8), despite the challenging macroeconomic situation and market conditions.
The net debt to EBITDA leverage ratio improved sequentially to 2.9x and we are
heading towards our target of around 2.5x.
Net sales in the quarter totaled SEK 6,830 m (7,576), which represents an organic net
sales decline by 12 percent. The situation in the Service & Aftermarket sales channel
continues to improve gradually and organic net sales declined by 5 percent compared to
a decline by 10 percent in the second quarter. Organic net sales in the Distribution sales
channel declined by 13 percent as retailers are re-balancing their inventories with a
temporary negative impact on the Igloo business. Net sales in the OEM sales channel
declined by 16 percent organically due to lower net sales in the Marine segment and
lower RV OEM net sales in Americas.
The improved EBITA margin was driven by segments EMEA, Global and APAC, where
selective pricing and cost reduction measures are generating results. While RV
production in the US remains significantly below last year, segment Americas delivered
a positive EBITA for the quarter supported by efficiency improvements and organic net
sales growth in Service & Aftermarket. The Igloo business delivered a margin on a par
with last year despite lower net sales. It is encouraging to see how our integration
activities are generating results, and following several customer meetings introducing
the 2024 Mobile cooling portfolio, we feel highly optimistic about the future.
Segment Marine saw organic net sales decline by 15 percent due to lower industry boat
production. After three years of strong organic growth, we experienced a slowdown in
the quarter. The robust EBITA margin of 23.8 percent (25.7) shows how continuous
efficiency improvements and investments in product innovation are generating results.
Net sales in the Marine Service & Aftermarket sales channel were stable giving further
resilience to the EBITA margin.
Our short-term focus on adjusting capacity and improving cash flow is generating
results and operating cash flow improved significantly supported by continued inventory
reductions. Compared to a year ago, inventories have declined by more than SEK 2 b.
and we expect further reduction going forward.
The innovation index improved sequentially to 16 percent compared to 15 percent in the
second quarter. Our short-term focus on reducing inventories, by driving sales on
existing products, is having a temporary negative impact on the index. The pipeline of
new products is robust and we expect to see progress towards our innovation index
target of 25 percent as inventories of existing products are sold. We are increasing
product development investments, most specifically in strategic structural growth areas
such as Marine Steering Systems, Mobile Power Solutions and Mobile Cooling. In
addition we are strengthening our organization around Sustainability, and the
Sustainability KPIs are progressing towards our 2024 targets.
The long-term trends in the Mobile Living industry are strong, however it remains
difficult to predict how the current macroeconomic situation and market conditions will
impact the business in the short term. We anticipate the recovery in demand in the
Service & Aftermarket sales channel to continue. In the Distribution sales channel we
expect a somewhat softer demand for a few quarters as retailers are re-balancing their
inventories, and expect the positive margin development year-on-year in Distribution to
continue. In the OEM sales channel we foresee a continued gradual weakening in
demand over the coming quarters, with the exceptions of RV Americas, where we
expect to see a stabilization by the end of the year and CPV where we expect to see
continued good demand.
While we will continue to be impacted by normal sales seasonality, the results in the last
quarters show that we are transforming Dometic into a more diversified, effective and
resilient consumer-oriented company. We will continue to relentlessly drive our strategic
agenda to deliver on our targets, prioritize margins before volumes, and at the same
time remain agile to quickly respond to short-term market trends.
Juan Vargues, President and CEO 1Unless stated othwerwise, EBITA refers to EBITA before items affecting comparability.
Net Sales, SEK m
Op. profit (EBIT A) before i.a.c . SEK m
Operating cash flow , SEK m
0
10,000
20,000
30,000
40,000
0
2,000
4,000
6,000
8,000
10,000
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2022 2023
LTMQ
Quarterly Last 12 months (LTM)
0
1,000
2,000
3,000
4,000
5,000
0
400
800
1,200
1,600
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2022 2023
LTMQ
Quarterly Last 12 months (LTM)
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
-500
0
500
1,000
1,500
2,000
2,500
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2022 2023
LTMQ
Quarterly Last 12 months (LTM)
===== SIDA 3 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 3
FINANCIAL SUMMARY –
THIRD QUARTER 2023
Net sales were SEK 6,830 m (7,576), a decrease of -10%
compared with the same quarter last year. This comprised -12%
organic growth, 3% currency translation and 0% M&A.
Gross profit was SEK 2,083 m (2,059) corresponding to 30.5%
(27.2%) of net sales. The improvement was supported by cost
reductions, price management and a sales mix with a higher
share of Service & Aftermarket net sales.
Sales and administrative expenses totaled SEK -916 m
(-914) negatively impacted by currency effects and investments in
strategic structural growth areas. Sales and administrative
expenses in percent of net sales was 13.5% (12.1%).
Research and development expenses were SEK -145 m (-142)
negatively impacted by currency effects and investments in
strategic structural growth areas. In addition, Research and
development expenses of SEK -9 m (-5) were capitalized in the
quarter. In total, this corresponds to 2.3% (1.9%) of net sales.
Other operating income and expenses were SEK -48 m (54).
The deviation compared with the same quarter last year was
mainly due to currency hedge effects.
Operating profit (EBITA) before amortization of acquisition-
related intangible assets and items affecting comparability
was SEK 973 m (1,057). The corresponding margin improved to
14.3% (14.0%) despite negative currency effects. The improved
margin was driven by segments EMEA, Global and APAC where
selective pricing and cost reduction measures are generating
results. This was partly offset by reduced margins in segments
Americas and Marine driven by lower net sales.
Amortization of acquisition-related intangible assets were
SEK -152 m (-156).
Items affecting comparability totaled SEK -33 m (-326) and
were mainly related to activities in the previously announced
global restructuring programs. The third quarter of 2022 included
a provision related to the closure of the manufacturing operations
in Siegen, Germany.
Operating profit (EBIT) was SEK 788 m (575). The
corresponding margin was 11.5% (7.6%). The improved margin
was driven by reduced items affecting comparability and an
improved EBITA2) margin.
Financial items totaled a net amount of SEK -184 m (20),
whereof SEK -246 m (-146) in interest on external bank and bond
loans impacted by higher interest rates. Other FX revaluations
and other items amounted to SEK 13 m (160) and financial
income amounted to SEK 48 m (6).
Taxes totaled SEK -192 m (-159), corresponding to 32% (27%) of
profit before tax. The increased tax rate was due to a country mix
with more taxable profits in higher tax jurisdictions and increased
non-tax deductible interest costs. The year to date tax rate of 29%
is the estimated full year tax rate. Current tax amounted to SEK -
133 m (-404) and deferred tax to SEK -59 m (245). Paid tax was
SEK -176 m (-190).
Profit for the period was SEK 412 m (436).
Earnings per share were SEK 1.29 (1.36). Adjusted earnings per
share were SEK 1.71 (2.53).
Operating cash flow was SEK 2,125 m (812). The
improvement compared with the same quarter last year
was driven by reduced working capital.
Cash flow was SEK -1,961 m (488), supported by an improved
operating cash flow. Net cash flow from investments was SEK -
224 m (-164) of which SEK -107 m (-29) payments of deferred
considerations related to acquisitions completed previous years
and SEK -118 m (-141) investments in fixed assets.
Net cash flow from financing was SEK -3,803 m (-111). A bond of
EUR 300 m due in September, 2023 was repaid using cash at
hand. The net of paid and received interest was SEK -288 m
(-220).
Global restructuring programs. In 2023 Dometic has two
programs running. The first program was initiated 2019, targeting
an annual saving of SEK 400 m at a total cost of SEK 750 m.
Activities in this program was completed mid 2023. An additional
program was announced in the second quarter of 2022, targeting
an annual saving of SEK 200 m at a total cost of SEK 200 m,
expected to be completed by the end of 2023. During the quarter,
Global restructuring program costs amounted to SEK -25 m (-
329).
Significant events after the quarter. As announced before,
Anders Fransson joined Dometic on October 1, 2023 as new
Head of Dometic Group Operations and Sustainability.
Peter Jannerö, who has been interim CMO since February 1,
2023, was appointed CMO for Dometic Group on October 1,
2023.
There have been no other significant events that have impacted
the financial reporting after the balance sheet date.
FINANCIAL SUMMARY –
FIRST NINE MONTHS 2023
Net sales were SEK 22,448 m (23,591), a decrease of -5%
compared with the same period last year. This comprised -12%
organic growth, 7% currency translation and 0% M&A.
Operating profit (EBITA) before amortization of acquisition-
related intangible assets and items affecting comparability
was SEK 2,997 m (3,501). The corresponding margin was 13.4%
(14.8%). Gross profit in percent of net sales improved compared
with the same period last year to 28.3% (27.3%). Sales,
Administrative as well as Research and development expenses
increased, negatively impacted by currency effects and
investments in strategic structural growth areas. Other operating
income and expenses were SEK -30 m (186) m, negatively
impacted by currency hedge effects. Currency effects in total,
mainly translation effects, had a positive impact on the operating
profit, however with a limited impact on the corresponding margin.
Amortization of acquisition-related intangible assets were
SEK -463 m (-449).
Items affecting comparability totaled SEK -94 m (-499) and
were mainly related to activities in the previously announced
global restructuring programs.
Operating profit (EBIT) was SEK 2,440 m (2,553). The
corresponding margin was 10.9% (10.8%). The margin was
negatively impacted by a lower EBITA2) margin, this was more
than offset by reduced items affecting comparability.
Financial items totaled a net amount of SEK -641 m (-184),
whereof SEK -670 m (-370) in interest on external bank and bond
loans impacted by higher interest rates. Other FX revaluations
and other items amounted to SEK -52 m (161) and financial
income amounted to SEK 82 m (25).
Taxes totaled SEK -519 m (-611), corresponding to 29% (26%) of
profit before tax. The increased tax rate was due to a country mix
with more taxable profits in higher tax jurisdictions and increased
non-tax deductible interest costs. The year to date tax rate of 29%
is the estimated full year tax rate. Current tax amounted to SEK -
518 m (-933) and deferred tax to SEK -2 m (322). Paid tax was
SEK -584 m (-576), corresponding to a paid tax rate of 32%
(24%). Paid tax was impacted by deferred tax payments related
to previous years.
Profit for the period was SEK 1,281 (1,757).
Earnings per share were SEK 4.01 (5.50). Adjusted earnings per
share were SEK 5.26 (7.78).
===== SIDA 4 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 4
Operating cash flow was SEK 4,718 m (1,151). The
improvement compared with the same period last year was
mainly driven by reduced inventories.
Cash flow was SEK 223 m (-459) supported by an improved
operating cash flow. Net cash flow from investments was SEK
-877 m (-1,016), of which SEK -525 m (-653) payments of
deferred considerations for acquisitions completed previous
years, and SEK -350 m (-371) investments in fixed assets.
Net cash flow from financing was SEK -3,384 m (-388) including
dividend paid SEK -415 m (-783) and the net of paid and received
interest SEK -660 m (-416). Dometic has refinanced part of its
credit facilities agreement with its bank group in the period. A
floating rate term loan of USD 210 m, previously expiring in 2024,
was replaced with a USD 220 m floating rate term loan with a 3-
year maturity including two 1-year extension options. In the period
Dometic has also signed and drawn down a 3.5 year floating rate
term loan of USD 44 m with Svensk Exportkredit. In addition, a
SEK 750 m private placement bond of 3.25 years, at a rate of
6.25%, was signed and drawn down in the period. A bond of EUR
300 m due in September 2023 was repaid using cash at hand.
Financial position. Net debt to EBITDA leverage ratio was 2.9x
(3.0x) at the end of the period. The ratio improved compared to
3.2x at the end of the second quarter 2023 driven by an improved
operating cash flow.
Return on Operating Capital (RoOC) excluding goodwill and
trademarks was 20.3% (27.3%).
Global restructuring programs. During the period total costs
amounted to SEK -74 m (-479). Since the start, 24 sites and
approximately 2,000 employees have been affected by the
programs with a total cost of SEK -892 m.
Employees. Number of employees in terms of headcount was
7,634 (8,366) at the end of the period.
2) before items affecting comparability
===== SIDA 5 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 5
FINANCIAL PERFORMANCE BY SEGMENT
SEGMENT AMERICAS
THIRD QUARTER 2023 NET SALES AND OPERATING PROFIT
Segment Americas reported net sales of SEK 1,403 m (1,718), representing 21% (23%) of Group net sales. Total growth was
-18%, of which -18% was organic growth, 0% currency translation and 0% M&A. The net sales decline was mainly in application areas
Food & Beverage and Climate. The organic net sales decline was mainly due to lower RV OEM net sales. This was partly offset by
Service & Aftermarket net sales growth.
Operating profit (EBITA) before amortization of acquisition-related intangible assets and items affecting comparability was SEK
40 m (100), corresponding to a margin of 2.8% (5.8%). The decline was driven by the net sales reduction. This was partly offset by
price management, efficiency improvements and a sales mix with a higher share of Service & Aftermarket net sales. Items affecting
comparability totaled SEK -3 m (-10). Amortization of acquisition-related intangible assets totaled SEK -26 m (-31). Operating profit
(EBIT) was SEK 10 m (59), corresponding to a margin of 0.7% (3.4%).
SEGMENT EMEA
THIRD QUARTER 2023 NET SALES AND OPERATING PROFIT
Segment EMEA reported net sales of SEK 1,885 m (1,871), representing 28% (25%) of Group net sales. Total growth was 1%, of
which -7% was organic growth, 8% currency translation and 0% M&A. The net sales growth was driven by application area Climate.
The organic net sales decline was due to lower Service & Aftermarket and Distribution net sales. This was partly offset by stronger
CPV OEM and RV OEM net sales.
Operating profit (EBITA) before amortization of acquisition-related intangible assets and items affecting comparability was SEK 221 m
(162), corresponding to a margin of 11.7% (8.6%). The improvement was driven by price management and efficiency improvements.
EMEA continued to be negatively impacted by extraordinary logistics-related costs and inefficiencies in manufacturing, linked to the
factory transfer from Germany to an existing site in Hungary. Items affecting comparability totaled SEK -25 m (-310). Amortization of
acquisition-related intangible assets totaled SEK -18 m (-17). Operating profit (EBIT) was SEK 178 m (-166), corresponding to a
margin of 9.4% (-8.8%).
SEGMENT APAC
THIRD QUARTER 2023 NET SALES AND OPERATING PROFIT
Segment APAC reported net sales of SEK 536 m (567), representing 8% (7%) of Group net sales. Total growth was -5%, of which
-5% was organic growth, 0% currency translation and 0% M&A. The net sales decline was mainly in application areas Food &
Beverage and Climate. The organic net sales decline was mainly due to lower Distribution net sales, while net sales in the OEM sales
channel showed organic growth.
Operating profit (EBITA) before amortization of acquisition-related intangible assets and items affecting comparability was SEK 146 m
(151), corresponding to a margin of 27.1% (26.6%). The improvement was driven by price management and efficiency improvements.
Items affecting comparability totaled SEK 0 m (-4). Amortization of acquisition-related intangible assets totaled SEK -4 m (-5).
Operating profit (EBIT) was SEK 141 m (142), corresponding to a margin of 26.3% (25.1%).
Q3 Q3 YTD YTD
SEK m 2023 2022 Reported Organic⁽¹⁾ 2023 2022 Reported Organic⁽¹⁾
Americas 1,403 1,718 -18% -18% 4,052 5,589 -27% -35%
EMEA 1,885 1,871 1% -7% 6,482 6,368 2% -6%
APAC 536 567 -5% -5% 1,558 1,626 -4% -7%
Marine 1,593 1,828 -13% -15% 5,272 5,064 4% -2%
Global 1,414 1,592 -11% -12% 5,084 4,945 3% -4%
Net sales 6,830 7,576 -10% -12% 22,448 23,591 -5% -12%
Americas 40 100 -47 390
EMEA 221 162 718 900
APAC 146 151 405 423
Marine 379 469 1,341 1,325
Global 188 174 580 463
Operating profit (EBITA⁽²⁾) before i.a.c.⁽³⁾ 973 1,057 2,997 3,501
Americas 2.8% 5.8% -1.2% 7.0%
EMEA 11.7% 8.6% 11.1% 14.1%
APAC 27.1% 26.6% 26.0% 26.0%
Marine 23.8% 25.7% 25.4% 26.2%
Global 13.3% 11.0% 11.4% 9.4%
Operating profit (EBITA) before i.a.c. % 14.3% 14.0% 13.4% 14.8%
Change (%)
⁽¹⁾Net sales growth excluding acquisitions /divestments and currency translation effects.
⁽²⁾Before Amortization of acquisition-related intangible assets.
⁽³⁾See note 4 for Operating profit (EBIT) by segment and note 6 for details on i.a.c. (items affecting comparabilty).
Change (%)
===== SIDA 6 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 6
SEGMENT MARINE
THIRD QUARTER 2023 NET SALES AND OPERATING PROFIT
Segment Marine reported net sales of SEK 1,593 m (1,828), representing 23% (24%) of Group net sales. Total growth was -13%, of
which -15% was organic growth, 2% currency translation and 0% M&A. The net sales decline was mainly in application area Power &
Control. This was partly offset by growth in application area Climate. The organic net sales decline was due to lower OEM net sales
while net sales in the Service & Aftermarket sales channel showed stable organic net sales.
Operating profit (EBITA) before amortization of acquisition-related intangible assets and items affecting comparability was SEK 379 m
(469), corresponding to a margin of 23.8% (25.7%). The decline was driven by the net sales reduction. This was partly offset by price
management, efficiency improvements and a sales mix with a higher share of Service & Aftermarket net sales. Items affecting
comparability totaled SEK 0 m (0). Amortization of acquisition-related intangible assets totaled SEK -52 m (-51). Operating profit
(EBIT) was SEK 328 m (418), corresponding to a margin of 20.6% (22.9%).
SEGMENT GLOBAL
THIRD QUARTER 2023 NET SALES AND OPERATING PROFIT
Segment Global consists of the Igloo business and Other global verticals. Other global verticals includes the businesses of
Residential, Hospitality and Mobile deliveries.
Segment Global reported net sales of SEK 1,414 m (1,592), representing 21% (21%) of Group net sales. Total growth was -11%, of
which -12% was organic growth, 1% currency translation and 0% M&A. The organic net sales decline was related to the Igloo
business while Other global verticals showed stable organic net sales.
Operating profit (EBITA) before amortization of acquisition-related intangible assets and items affecting comparability was SEK 188 m
(174), corresponding to a margin of 13.3% (11.0%). The improved margin was driven by Other global verticals while the margin for
Igloo was on a par with the same period last year despite the lower net sales. Items affecting comparability totaled SEK -5 m (-1).
Amortization of acquisition-related intangible assets totaled SEK -51 m (-52). Operating profit (EBIT) was SEK 132 m (121),
corresponding to a margin of 9.3% (7.6%).
===== SIDA 7 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 7
SUSTAINABILITY UPDATE
As a pioneer in the Mobile Living arena, Dometic is committed to driving sustainability in its industry. This means offering
innovative, durable, low-carbon products that inspire an active, comfortable, and responsible life in the outdoors. Dometic also
provides a safe, healthy, diverse, and inclusive workplace and ensures business practices meet the highest ethical standards.
Dometic’s sustainability platform consists of three focus areas – People, Planet, Governance – with strong ownership in Group
management and with clear KPIs, targets and activities implemented in daily operations. Progress on all defined targets is
reported externally as part of the Annual and Sustainability Report. In addition, on four of the KPIs, progress is reported on a
quarterly basis.
Actual result, Baseline and Targets in the table below are excluding acquisitions in 2021 and 2022. The process of including acquired
companies has started and actual result including acquisitions is included for some KPIs in the text below.
LTIFR (Lost Time Injury Frequency Rate). The LTIFR for the third quarter 2023 was 1.9 (1.7) and better than the target of 2.0. The
number of injuries have decreased compared to last year. The increase in LTIFR is due to less total worked hours in the Group, as a
result of significantly fewer FTE’s. Including acquisitions in 2021 and 2022, the LTIFR actual result was 1.6. Efforts focusing on injury
preventon continues throughout the organization to stay below the target of 2.0.
Share of female managers. The share of female managers has increased to 28% (24%) and signifies the Dometic’s commitment to
create a more equitable workplace. The result is supported by all segments dedicated efforts to promote gender diversity and
inclusion, and efforts continue throughout the organization to further increase the proportion of female managers. Including
acquisitions in 2021 and 2022, the share of female managers actual result was 28%.
Reduction in CO2 ton4)/net sales SEK m. Emissions in relation to net sales has decreased by -46% (-34%) compared with the
baseline year (2020). Further reductions during the third quarter was achieved through energy efficiency measures and transitioning
to renewable electricity sources. Absolute CO2 emissions decreased by -39% compared with the baseline year, while the share of
renewable indirect energy (scope 2) LTM (last twelve months) increased to 41% compared with 6% in the baseline year.
Share of new suppliers being ESG audited. As of last year Dometic extended its proactive focus on supplier audits, ensuring that at
least 90% of all new significant direct material suppliers are audited regarding ESG compliance. Year to date 2023, 98% (100%) of the
new significant suppliers have been audited for ESG compliance with a satisfactory result.
4) Scope 1 and 2 emissions represented by fuel combustion, electricity and district heating used on operation sites.
Focus area KPI Actual result
Previous
year⁽²⁾
Baseline
(Year)⁽³⁾
Target 2024
People LTIFR 1.9 1.7 2.4 (2021) <2.0
People Share of female managers 28% 24% 24% (2021) 27% (increase 1%
point per year)
Planet Reduction in CO₂ ton / net sales
SEK m⁽¹⁾ -46% -34% 2.0 (2020) -30%
Governance Share of new suppliers being ESG
audited 98% 100% n/a 90%
⁽²⁾ Previous year refers to actual results for the same reporting period previous year.
⁽¹⁾Adjusted for acquisitions and currency translation effects.
⁽³⁾Baseline refers to actual results (and year) used as starting point for Dometic's targets.
===== SIDA 8 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 8
PARENT COMPANY DOMETIC GROUP AB (PUBL)
Third quarter 2023
The Parent Company Dometic Group AB (publ) comprises the functions of the Group’s head office, such as Group management and
administration. The Parent Company invoices its costs to the Group companies.
For the quarter, the Parent Company had an operating profit of SEK -1 m (7), including administrative expenses of SEK
-61 m (-57) and other operating income of SEK 59 m (64), of which the full amount relates to income from Group companies.
Profit from financial items totaled SEK 146 m (335), including interest income from Group companies of SEK 237 m (132) and other
financial income and expenses of SEK -91 m (202). Other financial income and expenses were negative mainly due to decreased FX
gain on intercompany receivables.
Group contributions were SEK -145 m (-).
Profit for the quarter amounted to SEK -8 m (342).
First nine months 2023
For the period, the Parent Company had an operating profit of SEK -4 m (0), including administrative expenses of SEK
-168 m (-195) and other operating income of SEK 164 m (195), of which the full amount relates to income from Group companies.
Profit from financial items totaled SEK -560 m (641), including interest income from Group companies of
SEK 659 m (304) and other financial income and expenses of SEK -1,220 m (338). Other financial income and expenses were
negative mainly due to decreased FX gain on intercompany receivables.
Group contributions were SEK 564 m (-).
Profit for the period amounted to SEK -12 m (642).
For further information, please refer to the Parent Company’s condensed financial statements on page 13.
Solna, October 26, 2023
Juan Vargues
President and CEO
AUDITORS’ REVIEW REPORT (translation of Swedish original)
Dometic Group AB (publ) reg. no. 556829-4390
Introduction
We have reviewed the condensed interim financial information (interim report) of Dometic Group AB (publ) as of 30 September 2023
and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of
the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a
conclusion on this interim report based on our review.
Scope of Review
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim
Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in
Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material
respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual
Accounts Act, regarding the Parent Company.
Stockholm, October 26, 2023
PricewaterhouseCoopers AB
Patrik Adolfson Anna Rozhdestvenskaya
Authorized Public Accountant Authorized Public Accountant
Auditor in charge
===== SIDA 9 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 9
ANNUAL GENERAL MEETING 2024
Dometic Group’s Annual General Meeting will be held on April 11, 2024, in Stockholm.
NOMINATION COMMITTEE – ANNUAL GENERAL MEETING 2024
In accordance with the resolution adopted by the 2023 Annual General Meeting (AGM), the Nomination Committee ahead of the 2024
AGM shall be composed of the Chairman of the Board of Directors together with one representative from each of the three largest
shareholders, based on the ownership structure at August 31, 2023. Further details about the Nomination Committee are available on
the website. www.dometicgroup.com
===== SIDA 10 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 10
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Net sales 6,830 7,576 22,448 23,591 29,764
Cost of goods sold -4,747 -5,517 -16,103 -17,160 -21,883
Gross Profit 2,083 2,059 6,345 6,432 7,880
Sales expenses -540 -554 -1,694 -1,643 -2,185
Administrative expenses -377 -360 -1,174 -1,068 -1,376
Research and development expenses -145 -142 -449 -406 -531
Other operating income and expenses -48 54 -30 186 143
Items affecting comparability -33 -326 -94 -499 -532
Amortization of acquisition-related intangible assets -152 -156 -463 -449 -611
Operating profit 788 575 2,440 2,553 2,789
Financial income 48 6 82 25 45
Financial expenses -232 14 -722 -209 -396
Net financial expenses -184 20 -641 -184 -351
Profit before tax 604 595 1,800 2,368 2,438
Taxes -192 -159 -519 -611 -654
Profit for the period 412 436 1,281 1,757 1,784
Profit for the period attributable to owners of the Parent Company 412 436 1,281 1,757 1,784
Earnings per share before and after dilution, SEK - Owners of the Parent Company 1.29 1.36 4.01 5.50 5.58
Average number of shares, million 319.5 319.5 319.5 319.5 319.5
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Profit for the period 412 436 1,281 1,757 1,784
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit pension plans,
net of tax 35 64 52 248 178
35 64 52 248 178
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges, net of tax 35 -41 20 -25 -73
Gains/losses from hedges of net investments in foreign operations, net of tax 156 540 -438 1,220 573
Exchange rate differences on translation of foreign operations -605 1,084 1,292 3,184 2,289
-415 1,583 874 4,379 2,788
Other comprehensive income for the period -380 1,647 926 4,627 2,966
Total comprehensive income for the period 33 2,083 2,206 6,384 4,751
Total comprehensive income for the period attributable to
Owners of the Parent Company 33 2,083 2,206 6,384 4,751
===== SIDA 11 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 11
CONSOLIDATED
BALANCE SHEET (IN SUMMARY)
SEK m Sep 30, 2023 Sep 30, 2022 Jun 30, 2023 Dec 31, 2022
ASSETS
Non-current assets
Goodwill and trademarks 28 795 30 456 29 200 28 107
Other intangible assets 7 462 8 147 7 670 7 580
Tangible assets 2 541 2 590 2 597 2 540
Right-of-use assets 1 213 1 051 1 300 972
Deferred tax assets 513 729 612 513
Other non-current assets 183 172 182 168
Total non-current assets 40 707 43 145 41 560 39 879
Current assets
Inventories 7 751 10 090 8 418 9 314
Trade receivables 3 083 3 752 4 259 2 807
Current tax assets 117 42 124 109
Derivatives, current 57 239 160 147
Other current receivables 532 504 555 506
Prepaid expenses and accrued income 250 225 257 289
Cash and cash equivalents 4 633 4 093 6 614 4 399
Total current assets 16 423 18 945 20 387 17 572
TOTAL ASSETS 57 130 62 090 61 947 57 451
EQUITY AND LIABILITIES
EQUITY 28 205 28 048 28 173 26 415
LIABILITIES
Non-current liabilities
Liabilities to credit institutions, non-current 17 066 15 560 17 284 15 304
Deferred tax liabilities 3 178 3 364 3 211 3 113
Other non-current liabilities 0 255 55 90
Leasing liabilities, non-current 966 817 1 036 740
Provisions for pensions 494 545 537 528
Other provisions, non-current 232 295 234 255
Total non-current liabilities 21 937 20 836 22 356 20 030
Current liabilities
Liabilities to credit institutions, current 0 3 279 3 542 3 339
Trade payables 2 738 3 165 3 104 2 978
Current tax liabilities 238 869 296 296
Advance payments from customers 70 48 49 47
Leasing liabilities, current 379 361 398 351
Derivatives, current 116 191 112 111
Other provision, current 497 673 581 594
Other current liabilities* 1 417 3 047 1 655 1 919
Accrued expenses and prepaid income 1 533 1 574 1 680 1 371
Total current liabilities 6 988 13 206 11 418 11 007
TOTAL LIABILITIES 28 924 34 042 33 774 31 037
TOTAL EQUITY AND LIABILITIES 57 130 62 090 61 947 57 451
* As from Sep 30, 2022 Other current liabilities includes short-term deferred considerations not yet paid.
===== SIDA 12 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 12
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY (IN SUMMARY)
CONSOLIDATED STATEMENT
OF CASH FLOW
YTD YTD FY
SEK m 2023 2022 2022
Opening balance for the period 26,415 22,447 22,447
Profit for the period 1,281 1,757 1,784
Other comprehensive income for the period 926 4,627 2,966
Total comprehensive income for the period 2,206 6,384 4,751
Transactions with owners
Dividend paid to shareholders of the Parent Company -415 -783 -783
Total transactions with owners -415 -783 -783
Closing balance for the period 28,205 28,048 26,415
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Cash flow from operating activities
Operating profit 788 575 2,440 2,553 2,789
Adjustment for non-cash items
Depreciation and amortization 383 384 1,132 1,076 1,477
Other non-cash items -46 360 174 605 421
Changes in working capital
Changes in inventories 551 -62 1,864 -1,557 -1,247
Changes in trade receivables 1,079 904 -186 -557 231
Changes in trade payables -319 -1,136 -302 -538 -609
Changes in other working capital* -193 -72 -53 -60 -200
Income tax paid -176 -190 -584 -576 -991
Net cash flow from operations 2,067 764 4,484 946 1,869
Cash flow from investments
Acquisition of operations, net of cash acquired* -107 -29 -525 -653 -847
Investments in fixed assets -118 -141 -350 -371 -593
Proceeds from sale of fixed assets 2 1 2 3 4
Other investing activities -1 5 -4 4 10
Net cash flow from investments -224 -164 -877 -1,016 -1,426
Cash flow from financing
Borrowings from credit institutions - - 3,478 1,000 1,000
Repayment of loans to credit institutions -3,582 - -5,754 - -
Payment of lease liabilities related to lease agreements -95 -85 -270 -245 -343
Paid interest -335 -222 -737 -419 -492
Received interest 47 2 77 3 3
Other financing activities 163 194 237 55 45
Dividend paid to shareholders of the Parent Company 0 - -415 -783 -783
Net cash flow from financing -3,803 -111 -3,384 -388 -570
Cash flow for the period -1,961 488 223 -459 -127
Cash and cash equivalents at beginning of period 6,614 3,585 4,399 4,408 4,408
Exchange differences on cash and cash equivalents -21 19 10 143 117
Cash and cash equivalents at end of period 4,633 4,093 4,633 4,093 4,399
*As from Q4 2022 the cash flow effect from paid deferred considerations is classified within Cash flow from investments on row
Acquisition of operations, net of cash acquired.
===== SIDA 13 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 13
PARENT COMPANY
INCOME STATEMENT
PARENT COMPANY
BALANCE SHEET (IN SUMMARY)
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Administrative expenses -61 -57 -168 -195 -228
Other operating income 59 64 164 195 225
Operating profit -1 7 -4 0 -3
Interest income from Group companies 237 132 659 304 509
Interest expenses to Group companies - - - - -
Other financial income and expenses -91 202 -1,220 338 -503
Net financial expenses 146 335 -560 641 6
Group contributions -145 - 564 - -
Profit before tax 0 342 0 642 3
Taxes -8 - -12 - -14
Profit for the period -8 342 -12 642 -11
SEK m Sep 30, 2023 Sep 30, 2022 Jun 30, 2023 Dec 31, 2022
ASSETS
Non-current assets
Shares in subsidiaries 16,228 16,228 16,228 16,228
Other non-current assets 6,575 13,371 4,916 12,521
Total non-current assets 22,803 29,599 21,144 28,749
Current assets
Current assets 6,268 2,338 11,809 2,462
Total current assets 6,268 2,338 11,809 2,462
TOTAL ASSETS 29,071 31,937 32,953 31,212
EQUITY 11,633 12,712 11,640 12,060
PROVISIONS
Provisions 99 111 92 104
Total provisions 99 111 92 104
LIABILITIES
Non-current liabilities
Non-current liabilities 17,066 18,837 17,284 15,304
Total non-current liabilities 17,066 18,837 17,284 15,304
Current liabilities
Current liabilities 274 277 3,937 3,745
Total current liabilities 274 277 3,937 3,745
TOTAL LIABILITIES 17,438 19,225 21,313 19,152
TOTAL EQUITY AND LIABILITIES 29,071 31,937 32,953 31,212
===== SIDA 14 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 14
CONDENSED NOTES
NOTE 1 | ACCOUNTING PRINCIPLES
Dometic Group AB (publ) and its subsidiaries (together “the
Dometic Group”, “Dometic” or “the Group”) applies International
Financial Reporting Standards (IFRS), as endorsed by the
European Union. This consolidated Interim Financial Report has
been prepared in accordance with IAS 34 ‘Interim Financial
Reporting’.
The accounting and valuation principles in this interim report
correspond to principles applied by the Group in the 2022 Annual
and Sustainability Report and should be read in conjunction with
that Annual and Sustainability Report, available at
www.dometicgroup.com.
The Swedish Annual Accounts Act and RFR 2 Accounting for
Legal Entities, issued by the Swedish Financial Reporting Board,
have been applied for the Parent Company. The interim report
comprises pages 1–21 and pages 1–13 are thus an integral part
of this financial report (IAS 34.16A).
Totals quoted in tables and statements may not always be the
exact sum of the individual items because of rounding
differences. The aim is for each line item to correspond to its
source, and rounding differences may therefore arise.
New or amended accounting policies for 2023 adopted by the
Group
A detailed description of the accounting and valuation principles
for new or amended accounting policies for 2023 applied by the
Group in this interim report can be found in Note 2.1.1 Changes in
accounting policies, New or amended accounting policies for
2023, of the 2022 Annual and Sustainability Report available at
www.dometicgroup.com.
NOTE 2 | RISKS AND UNCERTAINTIES
Risks are part of any business and as a global Group with
production and distribution all over the world Dometic faces risks
that can impact its ability to achieve established strategic and
other objectives, including financial targets. Effective risk
management of strategic, execution, compliance & regulatory and
reporting risks creates opportunities and effective risk mitigation.
Dometic’s risks and risk management are described on pages 63-
67 and on pages 94-97 in the 2022 Annual and Sustainability
Report, available at www.dometicgroup.com.
As communicated before, ACON, the seller of Igloo, has filed a
lawsuit against Dometic in the fourth quarter 2022, making certain
claims related to the Stock Purchase Agreement (“SPA”).
Dometic is confident that the lawsuit lacks any merit, is
vehemently contesting this lawsuit and has filed counterclaims
against ACON related to its conduct under, and non-compliance
with, the SPA. The parties are currently involved in the discovery
process and trial is expected to take place in the first quarter,
2025.
NOTE 3 | FINANCIAL INSTRUMENTS
The Group uses currency forward contracts to hedge part of its
exposure to forecasted purchases and sales in foreign currency
as well as to hedge receivables and payables in foreign currency.
The fair values of Dometic’s derivative assets and liabilities were
SEK 57 m (239) and SEK 116 m (191). The value of derivatives is
based on published prices in an active market. No transfers
between levels of the fair value hierarchy have occurred during
the period.
For financial assets and liabilities other than derivatives, fair value
is assumed to be equal to the carrying amount.
TABLE TO NOTE 3 – FINANCIAL INSTRUMENTS
Sep 30, 2023
Balance sheet
carrying amount
Financial
instruments at
amortized cost
Financial
instruments at
fair value
Derivatives used
for hedging
Per category
Derivatives 57 - 5 52
Financial assets 8,430 8,430 - -
Total financial assets 8,487 8,430 5 52
Derivatives 116 - 69 46
Financial liabilities 21,220 20,202 1,018 -
Total financial liabilities 21,336 20,202 1,087 46
===== SIDA 15 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 15
NOTE 4 | SEGMENT INFORMATION
CONSOLIDATED OPERATING SEGMENTS
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Net sales, external
Americas 1,403 1,718 4,052 5,589 6,780
EMEA 1,885 1,871 6,482 6,368 7,970
APAC 536 567 1,558 1,626 2,231
Marine 1,593 1,828 5,272 5,064 6,695
Global 1,414 1,592 5,084 4,945 6,086
Total net sales, external 6,830 7,576 22,448 23,591 29,764
Operating profit (EBITA) before items affecting comparability
Americas 40 100 -47 390 330
EMEA 221 162 718 900 838
APAC 146 151 405 423 555
Marine 379 469 1,341 1,325 1,743
Global 188 174 580 463 464
Total operating profit (EBITA) before items affecting comparability 973 1,057 2,997 3,501 3,931
Operating profit (EBITA) before items affecting comparability %
Americas 2.8% 5.8% -1.2% 7.0% 4.9%
EMEA 11.7% 8.6% 11.1% 14.1% 10.5%
APAC 27.1% 26.6% 26.0% 26.0% 24.9%
Marine 23.8% 25.7% 25.4% 26.2% 26.0%
Global 13.3% 11.0% 11.4% 9.4% 7.6%
Total operating profit (EBITA) before items affecting comparability % 14.3% 14.0% 13.4% 14.8% 13.2%
Amortization of acquisition-related intangible assets
Americas -26 -31 -86 -87 -118
EMEA -18 -17 -56 -55 -74
APAC -4 -5 -15 -16 -21
Marine -52 -51 -157 -148 -202
Global -51 -52 -150 -144 -196
Total amortization of acqusition-related intangible assets -152 -156 -463 -449 -611
Items affecting comparability
Americas -3 -10 -8 -145 -151
EMEA -25 -310 -68 -346 -370
APAC -0 -4 -3 -4 -4
Marine 0 -0 0 -1 -1
Global -5 -1 -15 -4 -7
Total items affecting comparability -33 -326 -94 -499 -532
Operating profit (EBIT)
Americas 10 59 -141 158 61
EMEA 178 -166 594 499 394
APAC 141 142 387 403 531
Marine 328 418 1,184 1,177 1,541
Global 132 121 415 315 262
Total operating profit (EBIT) 788 575 2,440 2,553 2,789
Operating profit (EBIT) %
Americas 0.7% 3.4% -3.5% 2.8% 0.9%
EMEA 9.4% -8.8% 9.2% 7.8% 4.9%
APAC 26.3% 25.1% 24.8% 24.8% 23.8%
Marine 20.6% 22.9% 22.5% 23.2% 23.0%
Global 9.3% 7.6% 8.2% 6.4% 4.3%
Total operating profit (EBIT) % 11.5% 7.6% 10.9% 10.8% 9.4%
Financial income 48 6 82 25 45
Financial expenses -232 14 -722 -209 -396
Taxes -192 -159 -519 -611 -654
Profit for the period 412 436 1,281 1,757 1,784
===== SIDA 16 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 16
NET SALES BY APPLICATION AREAS
Inter-segment sales were as follows.
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Segment Americas
Food & Beverage 224 388 722 1,253 1,494
Climate 644 748 1,749 2,457 2,970
Power & Control 211 267 617 844 1,032
Other applications 324 316 964 1,035 1,284
Segment Americas net sales, external 1,403 1,718 4,052 5,589 6,780
Segment EMEA
Food & Beverage 653 686 2,432 2,350 2,871
Climate 934 870 3,033 2,995 3,763
Power & Control 180 195 672 702 925
Other applications 117 121 346 322 412
Segment EMEA net sales, external 1,885 1,871 6,482 6,368 7,970
Segment APAC
Food & Beverage 210 220 581 651 919
Climate 185 204 550 557 734
Power & Control 105 105 318 306 431
Other applications 35 38 110 111 147
Segment APAC net sales, external 536 567 1,558 1,626 2,231
Segment Marine
Food & Beverage 37 54 138 170 217
Climate 368 326 1,185 916 1,262
Power & Control 872 1,073 3,060 2,982 3,939
Other applications 317 375 888 995 1,278
Segment Marine net sales, external 1,593 1,828 5,272 5,064 6,695
Segment Global
Food & Beverage 1,387 1,572 5,007 4,884 6,009
Climate 1 1 4 3 4
Power & Control 0 2 1 3 3
Other applications 25 18 72 55 71
Segment Global net sales, external 1,414 1,592 5,084 4,945 6,086
Net sales, external
Food & Beverage 2,512 2,920 8,880 9,308 11,509
Climate 2,132 2,148 6,521 6,928 8,732
Power & Control 1,369 1,641 4,667 4,837 6,331
Other applications 818 867 2,379 2,518 3,191
Total net sales, external 6,830 7,576 22,448 23,591 29,764
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Segment Americas 52 48 166 126 170
Segment EMEA 63 86 186 282 340
Segment APAC 647 700 1,952 2,722 3,316
Segment Marine 6 13 26 40 49
Segment Global - - - - -
Eliminations 767 847 2,329 3,169 3,875
===== SIDA 17 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 17
NOTE 5 | NET SALES BY SALES CHANNEL
NOTE 6 | ITEMS AFFECTING COMPARABILITY
The table below specifies items affecting comparability by function and other operating income and expenses.
Q3 Q3 YTD YTD
SEK m 2023 2022 Reported Organic⁽¹⁾ 2023 2022 Reported Organic⁽¹⁾
Net sales, external
OEM 2,828 3,281 -14% -16% 9,278 10,037 -8% -14%
Distribution 1,952 2,198 -11% -13% 7,010 7,096 -1% -8%
Service & Aftermarket 2,051 2,097 -2% -5% 6,160 6,459 -5% -12%
Total net sales, external 6,830 7,576 -10% -12% 22,448 23,591 -5% -12%
⁽¹⁾Net sales growth excluding acquisitions /divestments and currency translation effects.
Change (%) Change (%)
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Global restructuring program -25 -329 -74 -479 -499
Other -9 4 -20 -20 -33
Total -33 -326 -94 -499 -532
Global restructuring program Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Cost of goods sold -17 -327 -62 -471 -476
Sales expenses -6 -3 -8 -3 -3
Administrative expenses -2 -1 -2 -1 -8
Research and development expenses - - - - -11
Other operating income and expenses 1 2 -2 -3 -2
Total -25 -329 -74 -479 -499
Other Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Cost of goods sold -1 - -1 - -
Sales expenses 1 4 2 -18 -21
Administrative expenses - - - - -1
Research and development expenses - - - - -
Other operating income and expenses -9 -1 -21 -2 -11
Total -9 4 -20 -20 -33
Total Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Cost of goods sold -18 -327 -63 -471 -476
Sales expenses -5 1 -6 -22 -24
Administrative expenses -2 -1 -2 -1 -8
Research and development expenses - - - - -11
Other operating income and expenses -8 1 -23 -5 -13
Total -33 -326 -94 -499 -532
===== SIDA 18 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 18
NOTE 7 | AMORTIZATION OF ACQUISITION-RELATED INTANGIBLE ASSETS BY FUNCTION
The table below specifies amortization of acquisition-related intangible assets by function and other operating income and expenses.
NOTE 8 | ADJUSTED EARNINGS PER SHARE
Specification of Adjusted earnings per share. Adjusted earnings per share excludes the impact from amortization of acquisition-related
intangible assets and items affecting comparability.
NOTE 9 | NET DEBT TO EBITDA LEVERAGE RATIO
Specification of Net debt to EBITDA leverage ratio.
SEK m
Amortization
Trademarks
Amortization of
Customer
Relationship
Assets
Amortization of
Technology
Amortization
of
Intellectual
Property Total
Q3 2023 - - -19 1 -18
Q3 2022 - - -20 -0 -20
YTD 2023 - - -55 -2 -57
YTD 2022 - - -55 -1 -56
FY 2022 - - -74 -1 -75
Q3 2023 -15 -119 - - -134
Q3 2022 -23 -113 - - -136
YTD 2023 -58 -348 - - -406
YTD 2022 -67 -326 - - -393
FY 2022 -91 -444 - - -535
Q3 2023 -15 -119 -19 1 -152
Q3 2022 -23 -113 -20 -0 -156
YTD 2023 -58 -348 -55 -2 -463
YTD 2022 -67 -326 -55 -1 -449
FY 2022 -91 -444 -74 -1 -611
Sales expenses
Cost of goods sold
Total Amortization of acquisition-related intangible assets
Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Profit before tax, reported 604 595 1,800 2,368 2,438
A) Adjustment for amortization of acquisition-related intangible assets 152 156 463 449 611
B) Adjustment for items affecting comparability 33 326 94 499 532
Profit before tax, adjusted 789 1,077 2,357 3,316 3,581
Taxes, reported -192 -159 -519 -611 -654
Taxes, adjustment for A) and B) -50 -109 -157 -220 -270
Profit for the period, adjusted 548 809 1,681 2,485 2,658
Average number of shares 319.5 319.5 319.5 319.5 319.5
Earnings per share, adjusted 1.71 2.53 5.26 7.78 8.32
SEK m Sep 30, 2023 Sep 30, 2022 Jun 30, 2023 Dec 31, 2022
Liabilities to credit institutions, non-current 17,066 15,560 17,284 15,304
Liabilities to credit institutions, current 0 3,279 3,542 3,339
Add back capitalized transaction costs 47 47 53 41
Liabilities to credit institutions excluding capitalized transaction costs 17,113 18,886 20,879 18,683
Total cash and cash equivalents -4,633 -4,093 -6,614 -4,399
Net Debt 12,480 14,794 14,265 14,284
EBITDA before items affecting comparability (i.a.c) LTM 4,335 4,936 4,415 4,797
EBITDA Acquisitions proforma LTM - 56 - 10
EBITDA before i.a.c. incl acquisitions proforma LTM 4,335 4,992 4,415 4,807
Net debt to EBITDA leverage ratio 2.9x 3.0x 3.2x 3.0x
===== SIDA 19 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 19
NOTE 10 | RIGHT-OF-USE ASSETS
Right-of-use assets information is specified below:
NOTE 11 | TRANSACTIONS WITH RELATED
PARTIES
No transactions between Dometic and related parties that have
significantly affected the company’s position and earnings took
place during the first nine months 2023.
NOTE 12 | ACQUISITIONS AND DIVESTMENTS
2023
Dometic has not made any acquisitions or divestments during the
first nine months 2023.
Effect on group cash flow
As from Q4 2022 the cash flow effect from paid deferred
considerations is classified within Cash flow from investments on
row Acquisition of operations, net of cash acquired. Cash flow
effects from paid deferred consideration on previous acquisitions
amounts SEK -525 m for the first nine months 2023.
2022
Acquisitions during the year
The purchase price allocation of Cadac International, NDS
Energy and Treeline Capital are considered to be final.
Effect on group cash flow
Effect on group cash flow amounts to SEK -653 m for the first
nine months 2022.
See the Annual and Sustainability Report 2022 note 29 for details
on acquisitions completed in 2022.
NOTE 13 | SIGNIFICANT EVENTS AFTER THE
PERIOD
Anders Fransson joined Dometic on October 1, 2023 as new
Head of Dometic Group Operations and Sustainability.
Peter Jannerö, who has been interim CMO since February 1,
2023, was appointed CMO for Dometic Group on October 1,
2023.
There have been no other significant events that have impacted
the financial reporting after the balance sheet date.
Depreciation & amortization Q3 Q3 YTD YTD FY
SEK m 2023 2022 2023 2022 2022
Depreciation and amortization -383 -384 -1,132 -1,076 -1,477
Add back depreciation related to right-of-use
assets 97 82 280 240 338
Total -286 -301 -852 -836 -1,138
Right-of-use assets
SEK m
Buildings 1,153 975 903
Machinery, equipment and other technical installations 60 76 69
Total 1,213 1,051 972
Sep
30,
2023
Sep
30,
2022
Dec
31,
2022
Acquisition
Date of
announcement
Included and
controlled from Segment
Previous year
net sales⁽¹⁾
Number of
employees⁽¹⁾
Cadac International Sept 16, 2021 Jan 4, 2022 EMEA 17 MEUR 40
NDS Energy Nov 11, 2021 Feb 1, 2022 EMEA 11 MUSD 25
Treeline Capital LLC March 2, 2022 March 2, 2022 Marine 16 MUSD 70
⁽¹⁾Annual net sales and number of employees as disclosed in the press release when announced.
===== SIDA 20 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 20
RECONCILIATION OF NON-IFRS MEASURES TO
IFRS (ALTERNATIVE PERFORMANCE MEASURES)
Dometic presents some financial measures in this interim report, which are not defined by IFRS. Dometic believes that these measures provide
valuable additional information to investors and management for evaluating the Group’s financial performance, financial position and trends in the
operations. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other compan ies.
These non-IFRS measures should not be considered as substitutes for financial reporting measures prepared in accordance with I FRS. See
Dometic’s website www.dometicgroup.com for the detailed reconciliation.
Adjusted earnings per
share
Net profit for the period, excluding the impact from amortization of acquisition -related intangible assets and items
affecting comparability, divided by average number of shares. See note 8.
Core working capital Consists of inventories and trade receivables less trade payables.
EBITDA and EBITDA margin Operating profit (EBIT) before Depreciation and Amortization. Depreciation also includes depreciation of right-of-
use assets in accordance with IFRS 16 Leases. Divided by net sales gives corresponding margin
EBITA and EBITA margin Operating profit (EBIT) before Amortization of acquisition -related intangible assets. Divided by net sales gives
corresponding margin.
EBITA bef i.a.c. and EBITA
bef i.a.c. margin
Operating profit (EBIT) before Amortization of acquisition -related intangible assets and items affecting
comparability. Divided by net sales gives corresponding margin
Net debt Total borrowings including provisions for pensions, accrued interest and capitalized transaction costs, less cash
and cash equivalents.
Net debt to EBITDA
leverage ratio
Net debt excluding provisions for pensions, accrued interest and capitalized transaction costs in relation to last
twelve months EBITDA before items affecting comparability and including acquisitions proforma. Any cash
deposits with tax authorities are treated as cash in the leverage calculation. See note 9.
Operating cash flow Cash flow from operations after investments in fixed assets excluding income tax paid. Paid interest/received
interest is part of net cash flow from financing.
Organic growth Net sales growth excluding acquisitions/divestments and currency translation eff ects. Quarters are calculated at
comparable currency, applying the latest period average rate.
RoOC – Return on
Operating Capital
Operating profit (EBIT) for the four previous quarters, divided by the average operating capital for the previous
four quarters, excluding goodwill and trademarks.
DEFINITIONS AND KEY RATIOS
Capital expenditure Expenses related to the purchase of tangible and intangible assets.
CO2 ton / net sales SEK m CO2 emissions from own operations (scope 1 and 2) divided by currency adjusted net sales. Rolling 12 months
with one month delay in reporting. Scope 1 = energy from fuel combustion used at operation sites (factories,
warehouses, distribution centers), Scope 2 = electricity and district heating used at operation sites. Excludes
acquisitions made in 2021 and 2022.
CPV Commercial and Passenger Vehicles.
EPS – Earnings per share Net profit for the period divided by average number of shares.
FY 2022 Full Year. January to December 2022 for Income statement.
i.a.c. – items affecting
comparability
Items affecting comparability are events or transactions with significant financial effects, which are relevant for
understanding the financial performance when comparing profit for the current period with previous periods. Items
included are for example restructuring programs, expenses related to major revaluations, gains and losses from
acquisitions or disposals of subsidiaries, or transaction costs related to major mergers and acquisitions.
Interest-bearing debt Liabilities to credit institutions plus liabilities to related parties plus provisions for pensions.
LTIFR Lost Time Injury Frequency Rate. Work related accidents with lost time >=1 day per million working hours. Rolling
twelve months with 1 months delay in reporting. Excludes acquisitions made in 2021 and 2022.
LTM Last twelve months.
Net profit Profit (loss) for the period.
OCI Other Comprehensive Income.
OEM Original Equipment Manufacturers.
Operating capital excluding
goodwill and trademarks
Interest-bearing debt plus equity less cash and cash equivalents, excluding goodwill and trademarks.
Operating profit (EBIT) and
corresponding margin
Operating profit (EBIT) before financial items and taxes. Divided by net sales gives corresponding margin.
Q3 2023 and Q3 2022 July to September 2023 and 2022 for Income Statement.
RV Recreational Vehicles.
Share of female managers Percentage of female managers in the company at the end of each period. Excludes acquisitions made in 2021
and 2022. During 2022 there was a delay of one quarter in the reporting of actual results, this has been adjusted.
Share of new suppliers
being ESG audited
Percentage of new significant direct material suppliers that have been ESG audited (on-site, remote or 3rd party
audits), with one month delay in reporting. Measuring period to be included as a new supplier is January 1, 2022
until end of 2024. Excludes acquisitions made in 2021 and 2022.
Working capital Core working capital plus other current assets less other current liabilities and provisions relating to operations.
YTD 2023 and 2022 January-September 2023 and 2022 for Income Statement
===== SIDA 21 =====
DOMETIC Q3 REPORT ─ SOLNA, OCTOBER 26, 2023 │ 21
PRESENTATION OF THE INTERIM REPORT
Analysts and media are invited to participate in a telephone conference at 10.00 (CEST),
October 26 , 2023, during which President and CEO, Juan Vargues and CFO, Stefan Fristedt,
will present the report and answer questions. To participate in the webcast/telephone
conference, please dial in five minutes prior to the start of the conference call. The webcast URL
and presentation are available at www.dometicgroup.com.
Webcast link:
https://dometic.videosync.fi/2023-10-26-q3-2023/register
To participate in conference call to ask questions
Those who wish to participate in the conference call to ask questions in connection with the
webcast are welcome to register on the link below. After the registration you will be
provided phone numbers and a conference ID to access the conference.
Registration link:
https://events.inderes.se/teleconference/?id=100376
FOR FURTHER INFORMATION, PLEASE CONTACT
Rikard Tunedal
Head of Investor Relations
Phone: +46 730 56 97 35
E-mail: rikard.tunedal@dometic.com
Dometic Group AB (publ)
Hemvärnsgatan 15
SE-171 54 Solna, Sweden
Phone: +46 8 501 025 00
www.dometic.com
Corporate registration number 556829-4390
This information is information that Dometic Group AB (publ) is obliged to make public pursuant
to the EU Market Abuse Regulation. The information was submitted for publication, through the
agency of the contact person set out above, at 08:00 CEST on October 26, 2023.
This document is a translation of the Swedish version of the interim report. In the event of any
discrepancy, the Swedish wording shall prevail.
ABOUT DOMETIC
Dometic is a global market leader in the mobile living industry. Millions of people around the world use
Dometic products in Outdoor, Residential, and Professional applications. Our motivation is to create smart,
sustainable, and reliable products with outstanding design for an outdoor and mobile lifestyle in the areas of
Food & Beverage, Climate, Power & Control, and Other Applications. Dometic employs approximately 8,500
people worldwide, had net sales of SEK 29.8 billion in 2022 and is headquartered in Solna, Sweden.
DISCLAIMER
Some statements herein are forward-looking and the actual outcome could be materially different. In addition
to the factors explicitly commented upon, the actual outcome could be materially affected by other factors,
(a) changes in economic, market and competitive conditions, (b) success of busine ss and operating
initiatives, (c) changes in the regulatory environment and other government actions, (d) fluctuations in
exchange rates and (e) business risk management.
FINANCIAL CALENDAR
January 31, 2024
April 11, 2024
April 19, 2024
July 18, 2024
October 23, 2024
Q4 and full year report 2023
Annual General Meeting 2024
Interim report for the first quarter 2024
Interim report for the second quarter 2024
Interim report for the third quarter 2024