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Thule Group — Interim / Quarterly Report 2022
Jul 21, 2022
2983_ir_2022-07-21_2546f0de-5d60-4b6c-a8b8-c041f293ce2a.pdf
Interim / Quarterly Report
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Interim report, second quarter, April-June 2022
- Net sales for the quarter amounted to SEK 3,314m (3,229), corresponding to an increase of 2.6 percent. Adjusted for exchange rate fluctuations, sales declined 3.4 percent.
- Operating income amounted to SEK 817m (886), corresponding to a margin of 24.7 percent (27.4).
- Net income amounted to SEK 626m (672).
- Cash flow from operating activities totaled SEK 489m (867).
- Earnings per share before dilution amounted to SEK 5.99 (6.43).
- New long-term targets were presented at the capital markets day held on May 11. The sales target was raised to SEK 20 billion for 2030 (previously SEK 16 billion). The EBIT margin target of >20 percent and the dividend level of >75 percent of net profit as well as the Group's ambitious sustainability goals remain unchanged.
- Growth plans in two new product areas were also presented at the capital markets day. In 2023, Thule products will be launched in the market segments of car seats and dog transport products. These two product areas will be reported together with other products in the product category currently called Active with Kids and that will be renamed Juvenile & Pet Products going forward.
| Apr-Jun 2022 |
Apr-Jun 2021 |
% | Jan-Jun 2022 |
Jan-Jun 2021 |
% | Full-year 2021 |
|
|---|---|---|---|---|---|---|---|
| Net sales, SEKm | 3 314 | 3 229 | +2.6 | 6 348 | 5 768 | +10.1 | 10 386 |
| Operating income (EBIT), SEKm | 817 | 886 | -7.8 | 1 509 | 1 480 | +2.0 | 2 340 |
| Net income, SEKm | 626 | 672 | -6.8 | 1 153 | 1 119 | +3.0 | 1 790 |
| Earnings per share, SEK | 5.99 | 6.43 | -6.8 | 11.03 | 10.71 | +3.0 | 17.12 |
| Cash flow from operating activities, SEKm | 489 | 867 | -43.6 | -37 | 939 | -103.9 | 1 128 |
Operating income
CEO's statement
Continued good growth with high margins
The second quarter was the largest in the company's history, despite the dramatic challenges in the business environment throughout spring 2022. Thanks to our efforts to introduce price increases and efficiency measures, we could successfully offset the effects of more expensive raw materials, higher freight prices and unfavorable exchange rates. We therefore managed to keep our gross margin of 42.2 percent (42.2) for the quarter.
The impact of Russia's invasion of Ukraine, continued challenges in global supply chains and drastic price increases continue to affect operations.
During the quarter, sales increased 3 percent (but decreased 3 percent after currency adjustment) compared with the second quarter previous year.
We maintained a high EBIT-margin of 24.7 percent in the quarter, which is above what we historically have reported during the second quarters. Compared with the exceptionally strong second quarter 2021 we reported a currency-adjusted decline of 2.2 percentage points. Operating expenses increased primarily due to the significant investments in product development, related to both our current and new product categories, as well as costs for managing higher inventories.
Stability in Region Europe & RoW
During the second quarter, sales in the region decreased 4.5 percent after currency adjustment, compared with the exceptionally strong second quarter 2021.
Sales of bike-related products decreased compared with the historically strong second quarter last year. This held for bike carriers in the Sport&Cargo Carriers and RV Products categories, as well as bike trailers and child bike seats in the Juvenile & Pet Products category.
Other categories performed well, with a particularly positive trend in the Packs, Bags & Luggage category.
The UK had notably weaker sales during the quarter. This is also the market, out of our larger markets, with the lowest growth compared with before the pandemic. The Nordic markets also had a weaker quarter compared with the previous year. But compared with 2019, performance in the Nordics are overall very positive.
Strong local currency drove growth in Region Americas
Currency-adjusted sales in the region during the second quarter were in line with the previous year. However, strong local currencies increased reported sales in the quarter 15 percent.
In this region too, we noted lower sales in bikerelated products compared with the exceptionally strong quarter last year. Geographically, the Canadian market was the strongest, while we noted decreased sales in Brazil.
Improved delivery capacity
Increased demand and successful product launches have organically grown Thule to a level much higher than before the pandemic. As previously communicated, we have carried out several measures to meet the significantly higher levels of demand with high delivery performance.
This includes significant investments in several of our assembly plants. Both to increase the level of automation and to increase production capacity. We have also decided to increase inventory levels until we see stabilization in global supply chains. This way, we can ensure our continued ability to manage significantly longer lead times. The inventory build-up consists of components and high-volume products.
Short-term challenges in uncertain markets, but positive long-term trends and exciting new product areas
Given the generally prevailing uncertainty in the near future, when comparing with the strong second half year, it is pleasing to note that the strong underlying market trends continue. The trend among consumers to seek to live active lives close to home remains stable and positive. In addition, we will in 2023 embark a journey of growth in another two very attractive product areas, car seats and dog transport products.
We are looking forward to an exciting autumn when we will be showcasing a record number of new products in all of product categories to our retailers around the world, before the broader consumer launch and in-store sales start in the spring 2023.
Magnus Welander, CEO and President
Financial overview
Trend for the second quarter
Net sales
In the second quarter of 2022, net sales amounted to SEK 3,314m (3,229), representing an increase of 2.6 percent. Adjusted for exchange rate fluctuations, net sales for the Group decreased 3.4 percent.
In Region Europe & RoW, net sales totaled SEK 2,412m (2,446), down 1.4 percent, and 4.5 percent after currency adjustment. Net sales in Region Americas amounted to SEK 902m (783), up 15.2 percent. After currency adjustment, this is the same level compared with the second quarter of 2021.
| Apr-Jun | Jan-Jun | |
|---|---|---|
| Change in net sales | 2022 | 2022 |
| Changes in exchange rates | 6.0% | 6.1% |
| Structural changes | 0.0% | 0.0% |
| Organic growth | -3.4% | 4.0% |
| Total | 2.6% | 10.1% |
Gross income
Gross income for the quarter totaled SEK 1,400m (1,364), corresponding to a gross margin of 42.2 percent (42.2). After currency adjustment, the margin improved 0.5 percentage points. The price increases passed on to customers offset higher costs for raw materials and higher freight prices.
Operating income
Operating income amounted to SEK 817m (886), corresponding to an operating margin of 24.7 percent (27.4). The operating margin after currency adjustment was 2.2 percentage points down on the previous year. The cost increases consisted primarily of increased development costs and increased costs for managing higher inventory levels. Additionally, the second quarter last year was affected by a revenue recognized from release of the provision related to a Tepui Outdoors Inc. earn-out payment of SEK 15m.
| Apr-Jun | Jan-Jun | |
|---|---|---|
| Change in operating margin | ||
| Operating income 2022 | 817 | 1 509 |
| Operating margin 2022 | 24.7% | 23.8% |
| Operating income 2021 | 886 | 1 480 |
| Operating margin 2021 | 27.4% | 25.7% |
| Operating income 2021, currency adjusted | 921 | 1 522 |
| Operating margin 2021, currency adjusted | 26.9% | 24.9% |
| Change in operating margin, currency adjusted | -2.2% | -1.1% |
Net financial items
Net financial items for the quarter amounted to an expense of SEK 11m (expense: 6). Exchange rate differences on loans and cash and cash equivalents amounted to SEK 3m (2). The interest expense for borrowings was SEK 13m (expense: 8). Increased use of the credit facility and growing interest rates account for the change in interest expense.
Net income for the period
In the second quarter, net income was SEK 626m, corresponding to earnings per share of SEK 5.99 before dilution and SEK 5.95 after dilution. For the year-earlier period, net income totaled SEK 672m, corresponding to earnings per share of SEK 6.43 before dilution and SEK 6.37 after dilution.
Trend for the first six months
Net sales
In the first half of 2022, net sales amounted to SEK 6,348m (5,768), representing an increase of 10.1 percent. Adjusted for exchange rate fluctuations, net sales for the Group increased 4.0 percent.
In Region Europe & RoW, net sales totaled SEK 4,570m (4,363), up 4.7 percent, and 1.3 percent after currency adjustment. Net sales in Region Americas amounted to SEK 1,778m (1,405), up 26.6 percent and 11.4 percent after currency adjustment compared with the first half of 2021.
Gross income
Gross income amounted to SEK 2,615m (2,413) in the period, corresponding to a gross margin of 41.2 percent (41.8). After currency adjustment, the margin improved 0.1 percentage points. The price increases passed on to customers offset higher costs for materials and shipping.
Operating income
Operating income amounted to SEK 1,509m (1,480), corresponding to an operating margin of 23.8 percent (25.7). The operating margin after currency adjustment was 1.1 percentage points down on the previous year. The cost increases consisted primarily of increased development costs and increased costs for managing higher inventory levels.
Net financial items
In the first half of the year, net financial items amounted to an expense of SEK 21m (expense: 15). Exchange rate differences on loans and cash and cash equivalents amounted to SEK 4m (0). The interest expense for borrowings was SEK 25m (expense: 15). Increased use of the credit facility and growing interest rates account for the change in interest expense.
Taxes
The effective tax rate for the January–June 2022 period was 22.5 percent. The effective tax rate for the corresponding period in 2021 amounted to 23.6 percent. No significant events occurred during the year that could affect the Group's effective tax rate.
Net income for the period
For the first six months, net income was SEK 1,153m, corresponding to earnings per share of SEK 11.03 before dilution and SEK 10.94 after dilution. For the year-earlier period, net income totaled SEK 1,119m, corresponding to earnings per share of SEK 10.71 before dilution and SEK 10.62 after dilution.
Cash flow
Cash flow from operating activities for the quarter was SEK 489m (867). Cash flow from operating activities was an outflow SEK 37m (inflow: 939) for the first half of the year. To meet growing demand and to minimize supply disruptions due to component shortages, long lead times, etc., inventory has been built up, which has increased working capital during the first half of the year. Investments in fixed assets amounted net to SEK 261m (238). A further SEK 980m of the company's credit facility was utilized during the period.
Financial position
As of June 30, 2022, the Group's equity amounted to SEK 6,165m (4,963). During the quarter, equity was affected by the dividend of SEK 1,359m resolved on by the AGM, of which SEK 680m has been distributed. The equity ratio amounted to 50.3 percent (52.6).
Net debt was SEK 2,562m (909) on June 30, 2022. Total long-term borrowing amounted to SEK 2,585m (1,204), and comprised loans from credit institutions of SEK 2,419m (1,064), gross, long-term lease liabilities of SEK 167m (133), capitalized financing costs of SEK 2m (5) and the long-term portion of financial derivatives of SEK 1m (12). Total current financial liabilities amounted to SEK 127m (60) and comprised the short-term portion of loans from credit institutions, financial derivatives and lease liabilities.
| SEKm | Jun 30 2022 | Jun 30 2021 | Dec 31 2021 |
|---|---|---|---|
| Long-term loans, gross | 2 586 | 1 197 | 1 556 |
| Financial derivative liability, long-term | 1 | 12 | 7 |
| Short-term loans, gross | 99 | 53 | 66 |
| Financial derivative liability, short-term | 29 | 7 | 14 |
| Overdraft facilities | 0 | 0 | 0 |
| Capitalized financing costs | -2 | -5 | -4 |
| Accrued interest | 0 | 0 | 1 |
| Gross debt | 2 713 | 1 264 | 1 640 |
| Financial derivative asset | -29 | -30 | -24 |
| Cash and cash equivalents | -122 | -326 | -149 |
| Net debt | 2 562 | 909 | 1 467 |
As of June 30, 2022, goodwill totaled SEK 4,808m (4,392). The increase was attributable entirely to currency effects.
As of June 30, 2022, inventories amounted to SEK 3,148m (1,267). Inventory has been accumulated during the period to avoid disruptions in logistics and by that efficiently meet higher demand. Compared with the same point in time in 2021, inventory was impacted by currency effects amounting to SEK 109m.
As of June 30, 2022, deferred tax receivables amounted to SEK 348m (350), of which SEK 123m (157) pertained to deferred tax attributable to capitalized loss carry forwards.
Other information
Financial targets and new product areas
New long-term targets were presented at the capital markets day held on May 11. The sales target was raised to SEK 20 billion for 2030 (previously SEK 16 billion). The EBIT margin target of >20 percent and the dividend level of >75 percent of net profit as well as the Group's ambitious sustainability goals remain unchanged.
Growth plans in two new product areas were also presented at the capital markets day. In 2023, Thule products will be launched in the market segments of car seats and dog transport products. These two product areas will be reported together with other products in the product category currently called Active with Kids and that will be renamed Juvenile & Pet Products going forward.
Seasonal variations
Thule Group's sales and operating income are during a normal year partially affected by seasonal variations. During the first quarter, sales in the Sport&Cargo Carriers category (roof boxes, ski racks, etc.) are affected by winter conditions. The second and third quarters are primarily impacted by how early the spring and summer arrive. In the fourth quarter, seasonal variations are primarily attributable to sales of winter-related products (roof boxes, ski racks, snow sport backpacks, etc.) and sales of products in the bag category prior to major holidays. Thule Group has adapted its production processes and supply chain in response to these variations.
Employees
The average number of employees was 3,497 (3,240).
Thule Group's share
The shares of Thule Group AB are listed on the Nasdaq Stockholm Large Cap list. As of June 30, 2022, the total number of shares in issue was 104,562,436.
Dividend
The Annual General Meeting on April 26 resolved to distribute a dividend of SEK 13.00 per share and that the dividend be distributed in two installments for a better adaptation to the Group's cash flow profile. The total resolved dividend amounted to SEK 1,359m. The record date for the first dividend payment totaling SEK 6.50 per share was April 28, 2022. October 6, 2022, was set as the record date for the second payment of SEK 6.50 per share.
Shareholders
As of June 30, 2022, Thule Group AB had 27,980 known shareholders. As of this date, the largest shareholders were AMF Försäkringar & Fonder (13.0 percent of the share ownership), SEB Fonder (4.2 percent of the share ownership), Didner & Gerge Fonder (3.9 percent of the share ownership) and Swedbank Robur Fonder (3.9 percent of the share ownership).
Please refer to www.thulegroup.com for further information.
Parent Company
Thule Group AB's principal activity pertains to head office functions such as Group-wide management and administration. The comments below refer to the period January 1–June 30, 2022. The Parent Company invoices its costs to Group companies. The Parent Company reported a net loss of SEK 16m (loss: 17). Cash and cash equivalents and current investments amounted to SEK 0m (0). Long-term liabilities to credit institutions totaled SEK 2,417m (1,059).
The Parent Company's financial position is dependent on the financial position and development of its subsidiaries. The Parent Company is therefore indirectly impacted by the risks described in Note 4, Risks and uncertainties.
Sales trend by region
| Apr-Jun Change |
Jan-Jun | Change | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2022 | 2021 | Rep. | Adj.1 | 2022 | 2021 | Rep. | Adj.1 |
| Net sales | 3 314 | 3 229 | 2.6% | -3.4% | 6 348 | 5 768 | 10.1% | 4.0% |
| - Region Europe & ROW | 2 412 | 2 446 | -1.4% | -4.5% | 4 570 | 4 363 | 4.7% | 1.3% |
| - Region Americas | 902 | 783 | 15.2% | -0.3% | 1 778 | 1 405 | 26.6% | 11.4% |
1Adjusted for changes in exchange rates
Region Europe & RoW
During the second quarter, sales in the region decreased 4.5 percent after currency adjustment, compared with an exceptionally strong second quarter in the previous year.
In Sport&Cargo Carriers, roof boxes and towbar boxes for transportation were the strongest category, with a strong interest in staycation. Bike carriers for cars decreased in sales compared with the exceptionally strong second quarter in 2021.
In the Juvenile & Pet Products (as the category is now called), strollers grew, while bike trailers and child bike seats recorded reduced sales compared with the exceptionally strong second quarter in 2021. A return to a more normal commuting pattern on public transportation is a contributing factor to the reduced demand from parents commuting with their children by bike. Most of the products, for which sales declined, were low price-point products, such as child bike seats and the more basic models of bike trailers.
Increased commuting to workplaces, schools and universities made computer backpacks the fastest-growing category in Packs, Bags & Luggage, though larger duffel and carry-on bags for travel also grew significantly during the quarter.
Within RV Products, growth was strongest at the retailer level since the major RV manufacturers continue to experience problems with access to chassis for their RV manufacturing.
The markets that grew most during the quarter were Germany and France, while the UK had a significantly weaker quarter. In the southern hemisphere, we posted very good growth in the Asian markets.
Region Americas
Currency-adjusted sales in the region were in line with the exceptionally strong second quarter last year.
Packs, Bags & Luggage, which is a significantly larger category in this region, performed very well this quarter, much like in Region Europe & RoW.
Same as in Sport&Cargo within Region Europe & RoW, roof boxes performed best within the category, while bike carriers recorded reduced sales during the quarter.
Juvenile & Pet Products had a weaker quarter compared with the exceptionally strong second quarter of 2021. Bike trailers and child bike seats are primarily only used on weekends and outdoor excursions in North America, more so than in Europe, and these items did not record the same strong demand as in the previous spring. Jogging strollers also had decreased sales compared with the strong comparison period.
The RV Products category is a niche in this region and its rapid growth continued.
Canada was, once again, the market that performed the best in the region.
Assurance
The Board of Directors and the President provide their assurance that this interim report provides a fair and accurate view of the Group's and the Parent Company's operations, financial position and earnings, and describes the material risks and uncertainties faced by the Parent Company and other companies in the Group.
July 21, 2022
Hans Eckerström Mattias Ankarberg Sarah McPhee Chairman of the Board Board member Board member
Heléne Mellquist Therese Reuterswärd Johan Westman Board member Board member Board member
Board member CEO
Helene Willberg Magnus Welander
Review report
This report has not been reviewed by the company's auditor.
Selected key events
Two new product areas were introduced at the capital markets day on May 11 – At the capital markets day we presented our ambitions for our two new product areas: car seats and dog transport products for cars and bikes. The first products in these market segments will be launched for customers in 2023 and the portfolio will be expanded during the coming years.
New accessories for four stroller models – The compact stroller Thule Shine was launched in stores at the end of the second quarter. In connection with the launch of our fourth stroller model, an offering of new, practical accessories for all four models was all also launched in new trendy colors.
Financial statements
(Unless otherwise stated, all amounts are in SEK m)
Consolidated Income Statement
| Apr - Jun | Jan - Jun | Full-year | |||||
|---|---|---|---|---|---|---|---|
| Note | 2022 | 2021 | 2022 | 2021 | LTM | 2021 | |
| Net sales | 2 | 3 314 | 3 229 | 6 348 | 5 768 | 10 966 | 10 386 |
| Cost of goods sold | -1 914 | -1 866 | -3 733 | -3 355 | -6 605 | -6 226 | |
| Gross income | 1 400 | 1 364 | 2 615 | 2 413 | 4 361 | 4 160 | |
| Other operating revenue | - | 15 | - | 15 | - | 15 | |
| Selling expenses | -487 | -409 | -916 | -775 | -1 622 | -1 481 | |
| Administrative expenses | -96 | -84 | -190 | -174 | -370 | -354 | |
| Operating income | 2 | 817 | 886 | 1 509 | 1 480 | 2 369 | 2 340 |
| Net interest expense/income | -11 | -6 | -21 | -15 | -43 | -37 | |
| Income before taxes | 806 | 881 | 1 488 | 1 465 | 2 326 | 2 303 | |
| Taxes | -180 | -208 | -335 | -346 | -502 | -513 | |
| Net income | 626 | 672 | 1 153 | 1 119 | 1 824 | 1 790 | |
| Net income pertaining to: | |||||||
| Shareholders of Parent Company | 626 | 672 | 1 153 | 1 119 | 1 824 | 1 790 | |
| Net income | 626 | 672 | 1 153 | 1 119 | 1 824 | 1 790 | |
| Earnings per share, SEK before dilution | 5.99 | 6.43 | 11.03 | 10.71 | 17.12 | ||
| Earnings per share, SEK after dilution | 5.95 | 6.37 | 10.94 | 10.62 | 16.95 | ||
| Average number of shares (millions) | 104.6 | 104.6 | 104.6 | 104.6 | 104.6 |
Consolidated Statement of Comprehensive Income
| Apr - Jun | Jan - Jun | Full-year | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | LTM | 2021 | |
| Net income | 626 | 672 | 1 153 | 1 119 | 1 824 | 1 790 |
| Items that have been carried over or can be carried over to net income | ||||||
| Foreign currency translation | 441 | -101 | 552 | 205 | 785 | 437 |
| Cash flow hedges | -4 | 8 | 1 | -11 | -1 | -14 |
| Net investment hedge | -32 | 32 | -41 | 12 | -72 | -20 |
| Tax on components in other comprehensive income | -3 | -8 | -4 | -5 | -1 | -2 |
| Items that cannot be carried over to net income | ||||||
| Revaluation of defined-benefit pension plans | 46 | 11 | 60 | 13 | 36 | -11 |
| Tax pertaining to items that cannot be carried over to net income | -10 | -2 | -12 | -3 | -8 | 2 |
| Other comprehensive income | 439 | -60 | 556 | 211 | 739 | 394 |
| Total comprehensive income | 1 066 | 613 | 1 709 | 1 330 | 2 562 | 2 183 |
| Total comprehensive income pertaining to: | ||||||
| Shareholders of Parent Company | 1 066 | 613 | 1 709 | 1 330 | 2 562 | 2 183 |
| Total comprehensive income | 1 066 | 613 | 1 709 | 1 330 | 2 562 | 2 183 |
Consolidated Balance Sheet
| Jun 30 | Jun 30 | Dec 31 | |
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| Assets | |||
| Intangible assets | 4 845 | 4 432 | 4 556 |
| Tangible assets | 1 797 | 1 233 | 1 479 |
| Long-term receivables | 8 | 4 | 8 |
| Deferred tax receivables | 348 | 350 | 326 |
| Total fixed assets | 6 999 | 6 019 | 6 369 |
| Inventories | 3 148 | 1 267 | 2 510 |
| Tax receivables | 12 | 10 | 6 |
| Accounts receivable | 1 734 | 1 583 | 872 |
| Prepaid expenses and accrued income | 100 | 69 | 81 |
| Other receivables | 151 | 165 | 205 |
| Cash and cash equivalents | 122 | 326 | 149 |
| Total current assets | 5 265 | 3 420 | 3 823 |
| Total assets | 12 264 | 9 439 | 10 192 |
| Equity and liabilities | |||
| Equity | 6 165 | 4 963 | 5 815 |
| Long-term interest-bearing liabilities | 2 585 | 1 204 | 1 559 |
| Provision for pensions | 202 | 223 | 244 |
| Deferred income tax liabilities | 374 | 296 | 370 |
| Total long-term liabilities | 3 162 | 1 723 | 2 174 |
| Short-term interest-bearing liabilities | 127 | 60 | 80 |
| Accounts payable | 967 | 1 001 | 1 057 |
| Tax liabilities | 252 | 343 | 165 |
| Other liabilities | 752 | 483 | 92 |
| Accrued expenses and deferred income | 747 | 772 | 716 |
| Provisions | 92 | 94 | 94 |
| Total short-term liabilities | 2 937 | 2 753 | 2 203 |
| Total liabilities | 6 099 | 4 476 | 4 377 |
| Total equity and liabilities | 12 264 | 9 439 | 10 192 |
Consolidated Statement of Changes in Equity
| Jan - Jun | Full-year | ||
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| Opening balance, January 1 | 5 815 | 5 253 | 5 253 |
| Net income | 1 153 | 1 119 | 1 790 |
| Other comprehensive income | 556 | 211 | 394 |
| Total comprehensive income | 1 709 | 1 330 | 2 183 |
| Transactions with the Group's owners: | |||
| Dividend | -1 359 | -1 621 | -1 621 |
| Warrants | - | - | -1 |
| Closing balance | 6 165 | 4 963 | 5 815 |
Consolidated Statement of Cash Flow
| Apr - Jun | Jan - Jun | ||||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | ||
| Income before taxes | 806 | 881 | 1 488 | 1 465 | |
| Adjustments for items not included in cash flow | 39 | 31 | 100 | 85 | |
| Paid income taxes | -186 | -108 | -269 | -173 | |
| Cash flow from operating activities prior to changes in working capital | 660 | 804 | 1 320 | 1 377 | |
| Cash flow from changes in working capital | |||||
| Increase(-)/Decrease (+) in inventories | 6 | -39 | -463 | -173 | |
| Increase(-)/Decrease (+) in receivables | 105 | -163 | -733 | -813 | |
| Increase(+)/Decrease (-) in liabilities | -282 | 264 | -160 | 548 | |
| Cash flow from operating activities | 489 | 867 | -37 | 939 | |
| Investing activities | |||||
| Acquisition/divestment of tangible/intangible assets | -113 | -182 | -261 | -238 | |
| Cash flow from investing activities | -113 | -182 | -261 | -238 | |
| Financing activities | |||||
| Dividend | -680 | -1 202 | -680 | -1 202 | |
| Debt repaid/new loans | 60 | 134 | 941 | 118 | |
| Cash flow from financing activities | -620 | -1 069 | 262 | -1 084 | |
| Net cash flow | -244 | -384 | -36 | -383 | |
| Cash and cash equivalents at beginning of period | 361 | 708 | 149 | 706 | |
| Effect of exchange rates on cash and cash equivalents | 5 | 2 | 9 | 3 | |
| Cash and cash equivalents at end of period | 122 | 326 | 122 | 326 |
Condensed Parent Company Income Statement
| Apr - Jun | Jan - Jun | ||||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| Other operating revenue | 5 | 4 | 11 | 9 | 18 |
| Administrative expenses | -13 | -12 | -27 | -29 | -57 |
| Operating income | -7 | -7 | -16 | -20 | -39 |
| Result from Shares in Subsidiaries | 0 | 0 | 0 | 0 | 900 |
| Interest income- and expense | -3 | -1 | -5 | -1 | -3 |
| Income after financial items | -10 | -8 | -21 | -21 | 858 |
| Appropriations | 0 | 0 | 0 | 0 | 36 |
| Net income before taxes | -10 | -8 | -21 | -21 | 894 |
| Taxes | 2 | 1 | 5 | 4 | 1 |
| Net income | -8 | -7 | -16 | -17 | 895 |
Condensed Parent Company Balance Sheet
| Jun 30 | Jun 30 | Dec 31 | |
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| Assets | |||
| Financial fixed assets | 3 693 | 4 383 | 4 439 |
| Total fixed assets | 3 693 | 4 383 | 4 439 |
| Receivables from group companies | 1 351 | 0 | 536 |
| Other current receivables | 16 | 10 | 7 |
| Cash and cash equivalents | 0 | 0 | 0 |
| Total current assets | 1 366 | 10 | 543 |
| Total assets | 5 059 | 4 393 | 4 982 |
| Equity and liabilities | |||
| Equity | 1 090 | 1 554 | 2 466 |
| Other provisions | 26 | 22 | 24 |
| Liabilities to credit institutions | 2 417 | 1 059 | 1 418 |
| Liabilities to Group companies | 0 | 368 | 368 |
| Total long-term liabilities | 2 443 | 1 449 | 1 810 |
| Liabilities to Group companies | 828 | 946 | 679 |
| Other current liabilities | 698 | 444 | 27 |
| Total short-term liabilities | 1 526 | 1 390 | 706 |
| Total equity and liabilities | 5 059 | 4 393 | 4 982 |
Disclosures, accounting policies and risk factors
Disclosures in accordance with Paragraph 16A of IAS 34 Interim Financial Reporting can be found in the financial statements and the associated notes as well as in other sections of the interim report.
Note 1 Accounting policies
This condensed consolidated interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and the applicable provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Swedish Annual Accounts Act on interim financial reporting. The same accounting policies and calculation methods have been applied for the Group and Parent Company as in the most recent Annual Report. Revised standards that became effective in 2022 have had no material impact on the Group's earnings and financial position.
Note 2 Operating segments and allocation of revenue
Thule Group comprises one segment. Though the Group has shared global processes for product development, purchasing, manufacture, logistics and marketing, its sales are managed in two regions, Region Europe & RoW and Region Americas. Internal monthly follow-up focuses on the Group as a whole, in addition to the geographic sales data, which is presented at other levels than Group level.
| Apr - Jun | Jan - Jun | Full-year | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | LTM | 2021 | |
| Net sales from external customers | 3 314 | 3 229 | 6 348 | 5 768 | 10 966 | 10 386 |
| - Region Europe & ROW | 2 412 | 2 446 | 4 570 | 4 363 | 7 646 | 7 440 |
| - Region Americas | 902 | 783 | 1 778 | 1 405 | 3 320 | 2 946 |
| EBITDA | 865 | 924 | 1 603 | 1 552 | 2 544 | 2 493 |
| Depreciation/amortization on fixed assets | -48 | -37 | -94 | -72 | -175 | -153 |
| EBIT/Operating income | 817 | 886 | 1 509 | 1 480 | 2 369 | 2 340 |
| Net interest expense/income | -11 | -6 | -21 | -15 | -43 | -37 |
| Taxes | -180 | -208 | -335 | -346 | -502 | -513 |
| Net income | 626 | 672 | 1 153 | 1 119 | 1 824 | 1 790 |
All revenue is recognized at one point in time.
Note 3 Fair value of financial instruments
| Fair Value | ||
|---|---|---|
| Jun 30 | Jun 30 | |
| 2022 | 2021 | |
| Assets - Financial derivatives | ||
| Currency forward contracts | 16 | 14 |
| Currency swaps | 2 | 8 |
| Currency options | 0 | 0 |
| Interest rate swaps | 11 | 9 |
| Total derivative assets | 29 | 30 |
| Liabilities - Financial derivatives | ||
| Currency forward contracts | -23 | -4 |
| Currency swaps | -6 | -2 |
| Currency options | 0 | 0 |
| Interest rate swaps | 0 | -13 |
| Total derivative liabilities | -30 | -20 |
The carrying amount is an approximation of the fair value for all financial assets and liabilities. The Group's long-term liabilities are subject to variable interest rates, which means that changes in the basic interest rate will not have a significant impact on the fair value of the liabilities. According to the company's assessment, neither have there been any changes in the credit margins that would significantly impact the fair value of the liabilities. The financial instruments measured at fair value in the balance sheet consist of derivatives held to hedge the Group's exposure to interest rates, currency rates and raw material prices. All derivatives belong to Level 2.
Note 4 Risks and uncertainties
Thule Group is an international company and its operations may be affected by a number of risk factors in the form of industry and market-related risks, operational risks, sustainability risks and financial risks. For a more detailed description of the relevant risk factors, refer to Thule Group's Annual Report.
Specifically in relation to the coronavirus pandemic, there are risk factors associated with the decisions made by various countries and states to close down markets from a production or a sales perspective. Despite Thule Group's flexible production chain and sales in 140 different countries, with no individual dominating suppliers or customers, it is difficult to assess this risk factor.
The current macroeconomic situation, rising inflation as well as geopolitical turmoil create uncertainty that makes it difficult to predict how demand will be affected.
Key figures
| Apr - Jun | Jan - Jun | Full-year | |||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 2021 | |
| Net sales, SEKm | 3 314 | 3 229 | 6 348 | 5 768 | 10 386 |
| Net sales growth, % | 2.6% | 58.1% | 10.1% | 52.3% | 32.7% |
| Net sales growth, adjusted %1 | -3.4% | 68.5% | 4.0% | 62.8% | 37.7% |
| Gross margin, % | 42.2% | 42.2% | 41.2% | 41.8% | 40.1% |
| Operating income (EBIT), SEKm | 817 | 886 | 1 509 | 1 480 | 2 340 |
| Operating margin, % | 24.7% | 27.4% | 23.8% | 25.7% | 22.5% |
| Earnings per share, SEK | 5.99 | 6.43 | 11.03 | 10.71 | 17.12 |
| Equity ratio, % | 50.3% | 52.6% | 50.3% | 52.6% | 57.1% |
| Leverage ratio | 1.0 | 0.4 | 1.0 | 0.4 | 0.6 |
1Adjusted for changes in exchange rates
Alternative performance measures and other financial definitions
Alternative performance measures are used to describe the underlying development of operations and to enhance comparability between periods. These are not defined under IFRS but correspond to the methods applied by Group management and the Board of Directors to measure the company's financial performance. These performance measures should not be viewed as a substitute for financial information presented in accordance with IFRS but rather as a complement. Refer to definitions of alternative performance measures, including calculation tables and other financial definitions below.
Gross margin Organic growth, currency adjusted LTM
Gross income Earnings per share
years during the given time period (expressed as a percentage). EBIT - margin/Operating margin Net sales grow th adjusted for currency how many years it w ould take to repay the
EBIT as a percentage of net sales. effects. company's debt, provided that its net debt
depreciation/amortization and impairment interest. Income before net financial items, taxes, depreciation/amortization and impairment of tangible and Net debt is a metric used for monitoring intangible assets. the debt trend and the scope of refinancing
Gross income as a percentage of net sales. Net sales grow th adjusted for structural Rolling 12-month. changes and currency effects. Net sales less cost of goods sold. Organic grow th excludes the effects of Net income for the period divided by the
structural changes in the Group's structure average number of shares during the period. CAGR (Compounded Annual Growth Rate) and exchange rates, w hich enables the Measures of the grow th rate achieved over a certain period comparison of net sales over time w ithout the Leverage ratio time period if that grow th rate w as the same each influence of, for example, acquisitions. Net debt divided by EBITDA (LTM).
Net sales growth, currency adjusted This APM is a debt ratio that indicates
EBIT – Operating income Gross debt less cash and cash equivalents. investments. Income before net financial items and taxes. Gross debt is the total of long- and shortterm borrow ing, derivative instruments, Equity ratio EBITDA – Operating income before capitalized transaction costs and accrued Equity as a percentage of total assets.
requirements. Since cash and cash equivalents can be used to repay debt at short notice, net debt is used instead of gross debt as a metric for total loan financing.
Operating income as a percentage of net sales. and EBITDA are constant, w ithout factoring Net debt cash flow s pertaining to interest, tax and
Calculation table alternative performance measures
| Apr - Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | ||
| Organic growth, currency-adjusted | |||||
| Change in net sales, % | 2.6 | 58.1 | 10.1 | 52.3 | |
| Exchange rate fluctuations, % | -6.0 | 10.4 | -6.1 | 10.4 | |
| Net sales, currency-adjusted growth, % | -3.4 | 68.5 | 4.0 | 62.8 | |
| Structural changes, % | - | - | - | - | |
| Organic growth, % | -3.4 | 68.5 | 4.0 | 62.8 | |
| EBITDA | |||||
| Operating income (EBIT), SEKm | 817 | 886 | 1 509 | 1 480 | |
| Reversal of depreciation/amortization and impairment, SEKm | 48 | 37 | 94 | 72 | |
| EBITDA, SEKm | 865 | 924 | 1 603 | 1 552 | |
| Net debt | |||||
| Long-term interest-bearing liabilities, gross, SEKm | 2 586 | 1 197 | 2 586 | 1 197 | |
| Derivative liabilities, long-term, SEKm | 1 | 12 | 1 | 12 | |
| Short-term interest-bearing liabilities, SEKm | 99 | 53 | 99 | 53 | |
| Derivative liabilities, short-term, SEKm | 29 | 7 | 29 | 7 | |
| Capitalized financing costs, SEKm | -2 | -5 | -2 | -5 | |
| Accrued interest, SEKm | 0 | 0 | 0 | 0 | |
| Gross debt, SEKm | 2 713 | 1 264 | 2 713 | 1 264 | |
| Derivative assets, SEKm | -29 | -30 | -29 | -30 | |
| Cash and cash equivalents, SEKm | -122 | -326 | -122 | -326 | |
| Net debt, SEKm | 2 562 | 909 | 2 562 | 909 | |
| Leverage ratio | |||||
| Net debt, SEKm | 2 562 | 909 | 2 562 | 909 | |
| Underlying EBITDA, SEKm | 2 544 | 2 461 | 2 544 | 2 461 | |
| Leverage ratio | 1.0 | 0.4 | 1.0 | 0.4 | |
| Equity ratio | |||||
| Equity, SEKm | 6 165 | 4 963 | 6 165 | 4 963 | |
| Total assets, SEKm | 12 264 | 9 439 | 12 264 | 9 439 | |
| Equity ratio, % | 50.3 | 52.6 | 50.3 | 52.6 |
Financial calendar
Interim report July–September 2022 October 27, 2022 Interim report October–December 2022 February 10, 2023
Contacts
Fredrik Erlandsson, Senior Vice President Communications and IR Tel: +46 (0)70-309 00 21, e-mail: [email protected] Jonas Lindqvist, CFO Tel: +46 (0)736-65 45 75, e-mail: [email protected]
About Thule Group
Thule Group is a global sports and outdoor company. We offer high-quality products with smart features and a sustainable design that make it easy for people across the globe to live an active life. Under the motto Active Life, Simplified — and with a focus on consumer-driven innovation and long-term sustainability — we develop, manufacture and market products within the product categories Sport&Cargo Carriers (roof racks, roof boxes and carriers for transporting cycling, water and winter sports equipment, and rooftop tents mounted on a car), Juvenile & Pet Products (strollers, bike trailers and child bike seats), RV Products (awnings, bike carriers and tents for RVs and caravans) and Packs, Bags & Luggage (e.g., hiking backpacks, luggage and camera bags).
Thule Group has about 3,300 employees at nine production facilities and 35 sales offices worldwide. The Group's products are sold in 140 markets and in 2021, sales amounted to SEK 10.4 billion. www.thulegroup.com
Thule Group AB (publ) Fosievägen 13 SE-214 31 Malmö, Sweden Corp. Reg. No: 556770-6311 www.thulegroup.com