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Thule Group Interim / Quarterly Report 2024
2983_10-q_2024-10-23_31f03d2c-7647-469a-8b28-5069038736cb.pdf
Interim / Quarterly Report
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Interim report
THIRD QUARTER
JULY-SEPTEMBER 2024
Thule Group>
The period in brief
- Net sales for the quarter amounted to SEK 2,344m (2,311), corresponding to an increase of 1.4 percent. Adjusted for exchange rate fluctuations and acquisitions, sales increased 4.4 percent.
- Operating income for the quarter amounted to SEK 413m (359), corresponding to a margin of 17.6 percent (15.5).
- Net income for the quarter was SEK 300m (262).
- Earnings per share before dilution amounted to SEK 2.84 (2.47) for the quarter.
- Cash flow from operating activities totaled SEK 955m (838) for the quarter.
| Jul-Sep 2024 |
Jul-Sep 2023 |
% | Jan-Sep 2024 |
Jan-Sep 2023 |
% | Full-year 2023 |
|
|---|---|---|---|---|---|---|---|
| Net sales, SEKm | 2 344 | 2 311 | +1.4 | 7 863 | 7 566 | +3.9 | 9 132 |
| Operating income (EBIT), SEKm | 413 | 359 | +15.2 | 1 557 | 1 451 | +7.3 | 1 505 |
| Net income, SEKm | 300 | 262 | +14.8 | 1 159 | 1 075 | +7.8 | 1 099 |
| Earnings per share, SEK | 2.84 | 2.47 | +15.0 | 10.96 | 10.24 | +7.0 | 10.45 |
| Cash flow from operating activities, SEKm | 955 | 838 | +14.1 | 1 924 | 1 575 | +22.2 | 1 850 |
NET SALES OPERATING INCOME
CEO's statement
GOOD QUARTER IN A CHALLENGING MARKET
We had a good third quarter of the year. Sales increased, profitability was good and the cash flow reached a record high level. Our many new products continue to drive growth and the work to build market positions in the new categories continues as planned.
Sales in the third quarter increased 4 percent (constant currency) compared to the same period last year. The market continues to be challenging, with cautious consumers and retailers. The North American market remains more challenging than its European counterpart. Our sales growth was driven by our many well-received product launches and by bike-related products. Sales remained unchanged in RV Products, where the market is experiencing a tougher period. Sales to manufacturers (OE) declined notably and were offset by good growth in sales to dealers. Growth was strongest within Juvenile & Pet, which increased 15 percent. During the quarter, sales through thule.com opened in two more countries, Finland and Portugal, which led to immediate growth in the DTC channel.
The gross margin for the third quarter increased to 42.9 percent (39.7). The EBIT margin amounted to 17.6 percent (15.5), the highest to date for a third quarter, with the exception of the pandemic years. The reduction in Inventory levels continued to outpace our goal for the year. Cash flow from operating activities reached was strong and totaled almost SEK 1bn for the third quarter. Together with an already strong balance sheet, this provides us with a continued capability to invest for the future.
We continue to work towards our ambitious sustainability targets. In the third quarter we introduced several products designed with a higher share of recycled material and completed the installation of air-source heat pumps at one of our largest factories, both of which will help us reach our target of net zero emissions.
NEW PRODUCTS DRIVE GROWTH
This year, we are launching more products than ever before. This has resulted in a record number of design awards as well as immediate sales growth. In the third quarter we continued to note good growth from upgraded bestsellers, for example, our marketleading all-terrain jogging stroller Thule Urban Gilde, our updated duffel bag Thule Chasm, and the newly launched next-generation multisport- and bike trailers Thule Chariot. Growth within bike-related products also improved due to the launch of two new bike carriers in the quarter.
At the same time, our work to long-term build market positions in our new categories continued.
We have quickly taken market share within dog transportation. Our first product, the Thule Allax dog crate, was launched in the first quarter of the year and was joined in the third quarter by Thule Bexey, our bike trailer for dog transportation. The product category is well suited for Thule: premium products for people who want to be active outdoors, willingness to pay for safety and user-friendliness, a growing market and a clear connection to our brand identity - "Bring your life." More products will be following shortly.
Our car seats for infants and small children were launched in Germany, Austria and Switzerland in May, and in Belgium and the Netherlands in September. We have already won design awards, received positive media exposure and good distribution with important retailers. Just recently we won the so-called ADAC test, Europe´s most important consumer test. Launches in other European countries are coming in the fourth quarter. Even though we are in an intensive launch phase, we are also developing additional products. Next year we will be launching our high back booster seat, with back and neck support.
MARKET LEADER – THE KEY TO OUR FUTURE
We are a global market leaders in our most important product categories. This is one of our greatest strengths. An even more important strength is our ability to further develop and grow our market-leading positions.
Improving and developing is at the core of the Thule spirit. We are not content being market leaders – we continue investing to increase our lead over competition. As a market leader we have deep knowledge about technology, safety, regulations and consumer behaviour. We also have financial and other resources to invest in the long term. With the Thule spirit and a world class global development and test center, we are
constantly raising the level of our ambitions and improving the quality of our innovations. In conclusion, we make more, and better, products than anyone else – driving growth for the product category and for ourselves. As a market leader, we essentially create our own future.
One clear example of this is the third quarter's new bike carriers, a category where we are a global market leader. We launched an updated version of our best-selling Thule Easyfold as well as a new niche product, the Thule Revert. The Thule Revert can transport up to six bikes at once vertically, and is the market's only vertical carrier that provides assistance in raising and lowering to manage the weight of six bikes. Thanks to our existing strengths, the development time was short, and being the result of an innovative product and established distribution, the first production volume is already sold out. We will now meet the next bike season with an improved bestseller and a winner in yet another niche. This is how we grow our market leading positions.
During the last few years, we have invested significant resources in developing products for new categories, particularly in car seats. We will continue to invest to become a market leader in car seats – even if it takes 25 years, like it did for roof boxes. However, we also have great opportunities to further develop many of our existing market-leading positions, which leads to a quick and direct impact on sales and profitability. These investments will increase going forward. For example, we will launch other important new products and innovations within bike carriers as early as spring 2025.
CONTINUED FOCUS ON GROWTH
Thule is doing well, even in a tough market. We continue to invest long-term in areas that create value for Thule: product development; more product categories; increased consumer visibility; and increased efficiency in our supply chain. More people also want to live active lives, a trend that gives us a long-term tailwind.
After a good high season, an exciting fourth quarter awaits. We are launching car seats in Europe, finalizing plans ahead of next year, and hoping that many of our customers have the chance to be active during the winter. I look forward to an eventful end to the year!
Mattias Ankarberg CEO and President
Financial overview
Trend for the third quarter
NET SALES
In the third quarter of 2024, net sales amounted to SEK 2,344m (2,311), representing an increase of 1.4 percent. Adjusted for exchange rate fluctuations and acquisitions, net sales for the Group increased 4.4 percent.
In Region Europe & RoW, net sales totaled SEK 1,743m (1,689) in the third quarter, up 3.2 percent, and 5.6 percent adjusted for exchange rates and acquisitions. Net sales in Region Americas amounted to SEK 601m (622), down 3.3 percent, but sales increased 1.1 after currency adjustment compared with the third quarter of 2023.
GROSS INCOME
Gross income for the quarter totaled SEK 1,006m (918), corresponding to a gross margin of 42.9 percent (39.7). Gross income was positively impacted by product mix, increased volumes and lower material costs.
OPERATING INCOME
Operating income amounted to SEK 413m (359), corresponding to a margin of 17.6 percent (15.5). Operating income was positively impacted by an improved gross margin, but costs for product launches were higher year-on-year.
With the acquisition of Reacha, we are expanding our lineup to include a full range of premium bike trailers – perfect for kids, dogs and cargo.
| Jul-Sep | Jan-Sep | |
|---|---|---|
| Change in net sales | 2024 | 2024 |
| Changes in exchange rates | -3.1% | -0.5% |
| Structural changes | 0.1% | 0.0% |
| Organic growth | 4.4% | 4.4% |
| Total | 1.4% | 3.9% |
NET FINANCIAL ITEMS
Net financial items for the quarter amounted to an expense of SEK 15m (expense: 30). Exchange rate differences on loans and cash and cash equivalents amounted to an expense of SEK 2m (expense: 3). The interest expense for borrowings was SEK 13m (expense: 26).
NET INCOME FOR THE PERIOD
In the third quarter, net income was SEK 300m, corresponding to earnings per share of SEK 2.84 before and after dilution. For the yearearlier period, net income totaled SEK 262m, corresponding to earnings per share of SEK 2.47 before and after dilution.
CASH FLOW
Cash flow from operating activities for the quarter was SEK 955m (838). Cash flow from operating activities before changes in working capital was SEK 333m (302) and cash flow from changes in working capital was SEK 622m compared with SEK 535m in the year-earlier period. During the quarter, the cash flow was impacted by a payment amounting to net SEK 7m for the acquisition of Reacha.
Trend for the first three quarters
NET SALES
Net sales for the first three quarters of 2024 amounted to SEK 7,863m (7,566), representing an increase of 3.9 percent. Adjusted for exchange rate fluctuations, net sales for the Group increased 4.4 percent.
In Region Europe & RoW, net sales totaled SEK 5,921m (5,635), up 5.1 percent, and 5.3 percent after currency adjustment. Net sales in Region Americas amounted to SEK 1,942m (1,931), up 0.5 percent and 1.7 percent after currency adjustment compared with the year-earlier period.
GROSS INCOME
Gross income amounted to SEK 3,377m (3,154) in the period, corresponding to a gross margin of 42.9 percent (41.7). Gross income was positively impacted by product mix, increased volumes and lower material costs.
OPERATING INCOME
Operating income amounted to SEK 1,557m (1,451), corresponding to a margin of 19.8 percent (19.2). Operating income was impacted by an improved gross margin and higher costs for product launches. Costs for external inventory management have declined year-on-year.
NET FINANCIAL ITEMS
Net financial items for the period amounted to an expense of SEK 59m (expense: 62). Exchange rate differences on loans and cash and cash equivalents amounted to SEK 2m (20). The interest expense for borrowings was SEK 61m (expense: 83).
TAXES
The effective tax rate for the January–September 2024 period was 22.6 percent. The effective tax rate for the corresponding period in 2023 amounted to 22.6 percent.
NET INCOME FOR THE PERIOD
For the first three quarters, net income was SEK 1,159m, corresponding to earnings per share of SEK 10.96 before and after dilution. For the year-earlier period, net income totaled SEK 1,075m, corresponding to earnings per share of SEK 10.24 before dilution and SEK 10.23 after dilution.
CASH FLOW
Cash flow from operating activities for the first three quarters was SEK 1,924m (1,575). Inventories declined SEK 712m compared with the start of the year. Net investments in tangible and intangible assets amounted to SEK 183m (166).
FINANCIAL POSITION
As of September 30, 2024, the Group's equity amounted to SEK 7,115m (7,274). Equity was impacted by the dividend of SEK 1,004m resolved on by the AGM, of which SEK 502m has been distributed. The equity ratio amounted to 61.5 percent (59.3).
On September 30, 2024, net debt amounted to SEK 869m (1,773). Total long-term borrowing amounted to SEK 1,652m (2,412), comprising loans from credit institutions of SEK 1,527m (2,252), gross, long-term lease liabilities of SEK 132m (161), capitalized financing costs of SEK 17m ( 2), and the long-term portion of financial derivatives of SEK 10m (0). Total current financial liabilities amounted to SEK 93m (113) and comprised the short-term portion of financial derivatives and lease liabilities. Net debt declined during the first three quarters by SEK 1,138m. Cash flow from operating activities positively contributed with SEK 1,924m, while investments of SEK 183m and a dividend of SEK 502m had a negative impact.
| SEKm | Sep 30 2024 | Sep 30 2023 | Dec 31 2023 |
|---|---|---|---|
| Long-term loans, gross | 1 659 | 2 413 | 2 033 |
| Financial derivative liability, long-term | 10 | 0 | 7 |
| Short-term loans, gross | 86 | 88 | 99 |
| Financial derivative liability, short-term | 7 | 25 | 34 |
| Overdraft facilities | 0 | 0 | 3 |
| Capitalized financing costs | -17 | -2 | -2 |
| Accrued interest | 0 | 1 | 1 |
| Gross debt | 1 746 | 2 526 | 2 175 |
| Financial derivative asset | -20 | -49 | -75 |
| Cash and cash equivalents | -857 | -704 | -94 |
| Net debt | 869 | 1 773 | 2 006 |
As of September 30, 2024, goodwill totaled SEK 4,971m (5,143). The decrease was attributable entirely to currency effects.
As of September 30, 2024, deferred tax receivables amounted to SEK 305m (303), of which SEK 123m (135) pertained to deferred tax attributable to capitalized loss carry forwards.
Other information
NEW FINANCING
During the year, Thule Group entered into a new financing agreement. The new financing agreement, which entered force on June 10, 2024, totals EUR 400m and comprises a revolving credit facility (RCF) of EUR 320m and a long-term loan of EUR 80m. The RCF comprises two tranches of equal amounts with maturities of three and five years, and options for extension of up to two years. The long-term loan has a maturity of four years.
The new RCF facility is provided in equal shares by Nordea Bank Abp, Swedish branch; Swedbank AB (publ); Danske Bank A/S, Swedish branch; and DNB Bank ASA, Swedish branch. Nordea Bank Abp, Swedish branch, acts as a proxy and coordinator for the transaction in its role as documentation proxy. The lender for the long-term loan is AB Svensk Exportkredit (SEK).
In conjunction with the new financing agreement, the existing loans under the old loan agreement were repaid, which was partly financed by borrowings under the new financing agreement, and partly from Thule Group's cash balances. The new financing agreement will secure flexible, long-term financing for the company and has a diversified term structure.
ACQUISITIONS
At the start of July, Thule Group acquired the German company Reacha (good goods tegernsee Gmbh). The company has an innovative product design that makes it possible for people to cycle to the sea or lake with a kayak, surfboard or SUP (stand up paddleboard ) carried on a bike trailer. Operations are based in Germany with the majority of sales in Europe. The company had sales of about SEK 9m in 2023 and the purchase consideration was about SEK 11m (including net debt) with the possibility of an earn-out payment of a maximum of SEK 4m based on the outcome for 2024. Bike trailers is an attractive and growing segment. Operations will be integrated in Thule's product portfolio and distribution channels.
SEASONAL VARIATIONS
Thule Group's sales and operating income are normally affected by seasonal variations. Sales in the first and fourth quarters primarily concern sales of winter-related products, while sales in the second and third quarters primarily concern summer-related products. Thule Group has adapted its production processes and supply chain in response to these variations.
EMPLOYEES
The average number of employees, including externally contracted workers in manufacturing, amounted to 2,750 (2,624) in the third quarter. At the end of the third quarter, the number of FTEs was 2,626, whereby 2,541 are employees and 85 are externally contracted workers in manufacturing. This is a decrease of 306 FTEs compared with the end of the second quarter of 2024 (2,675 employees and 257 externally contracted workers in manufacturing), and an increase of 95 FTEs compared with the third quarter of 2023 (2,503 employees and 28 externally contracted workers in manufacturing).
THULE GROUP'S SHARE
The shares of Thule Group AB are listed on the Nasdaq Stockholm Large Cap list. As of September 30, 2024, the total number of shares in issue was 105,733,097.
DIVIDEND
The Annual General Meeting on April 26 resolved to distribute a dividend of SEK 9.50 per share and that the dividend be distributed in two installments in order to better adapt to the Group's cash flow profile. The record date for the first dividend payment totaling SEK 4.75 per share was April 30, 2024. The record date for the second payment of SEK 4.75 per share will be October 7, 2024.
SHARE-BASED INCENTIVE PROGRAM 2023/2026, 2024/2027 AND 2025/2028
Serie 2024/2027 of the warrants program resolved on by the Annual General Meeting (AGM) for executive management and key employees of Thule Group was implemented in the second quarter of 2024. The program covers the issue of a maximum of 2,778,000 warrants, distributed in equal parts in three series, to Thule Group's wholly owned subsidiary Thule AB, for further transfer to the participants.
During the year, a total of 326,009 warrants in series 2024/2027 were acquired by 28 participants. The warrants were transferred at a price of SEK 29.77 per warrant, which corresponds to the fair market price calculated by an external party at the time of transfer. The warrants can be exercised to subscribe for shares between June 15 and December 15, 2027 and the exercise price per share has been set at SEK 379.94, which corresponds to 120 percent of the volume-weighted average price according to Nasdaq Stockholm's official price list during the five trading days immediately preceding the transfer. The so-called roof price has been set at SEK 519.57, which corresponds to 164.1 percent of the same average share price. This means that if the market price of the company's share exceeds the roof price when the option is exercised, the exercise price shall be increased accordingly.
SHAREHOLDERS
As of September 30, 2024, Thule Group AB had 27,260 known shareholders. On this date, the largest shareholders were AMF Försäkringar & Fonder (11.7 percent of the capital and votes), Swedbank Robur Fonder (8.5 percent of the capital and votes), Handelsbanken Fonder (5.5 percent of the capital and votes) and Alecta (4.8 percent of the capital and votes).
See www.thulegroup.com for further information on Thule Group's shareholders.
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–September 30, 2024. The Parent Company invoices its costs to Group companies. The Parent Company reported a net loss of SEK 31m (loss: 40). Cash and cash equivalents and current investments amounted to SEK 0m (0). Long-term liabilities to credit institutions totaled SEK 1,510m (2,250).
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 per region
REGION EUROPE & ROW
During the third quarter, sales in the region increased 5.6 percent adjusted for exchange rates and acquisitions. Sales growth in the quarter was mainly driven by bike-related products and new product launches in Juvenile & Pet. Sales increased somewhat in RV Products with the industry experiencing a weaker period. We continued to open own sales via thule.com in Europe, and launched in Portugal and Finland during the quarter. The DTC channel continued to grow. Markets that performed included all of the Benelux countries, the DACH region and France.
REGION AMERICAS
Sales in Region Americas increased 1.1 percent after currency adjustment during the quarter. The North American market remained challenging. Sales of bike-related products and Juvenile & Pet contributed to growth for the quarter. Sales declined within Packs, Bags & Luggage and RV Products. Growth was positive in Canada. Sales declined in the US.
The Thule Bexey bike trailer is made specifically for your furry friend and designed for safe and comfortable adventures.
| Jul-Sep | Change | Jan-Sep | Change | |||||
|---|---|---|---|---|---|---|---|---|
| SEKm | 2024 | 2023 | Rep. | Adjust.1 | 2024 | 2023 | Rep. | Adjust.1 |
| Net sales | 2 344 | 2 311 | 1.4% | 4.4% | 7 863 | 7 566 | 3.9% | 4.4% |
| - Region Europe & RoW | 1 743 | 1 689 | 3.2% | 5.6% | 5 921 | 5 635 | 5.1% | 5.3% |
| - Region Americas | 601 | 622 | -3.3% | 1.1% | 1 942 | 1 931 | 0.5% | 1.7% |
1 Adjusted for changes in exchange rates and acquisitions
Sales trend per product category
SPORTS&CARGO CARRIERS
Sales increased 5 percent after currency adjustment in the third quarter. Sales in the largest subcategory, bike carriers, increased based on additional launches during the quarter, though sales in the winter category declined. Sport&Cargo Carriers accounted for 63 percent of total sales.
RV PRODUCTS
Sales remained unchanged in RV Products with the industry experiencing a weaker period. Sales to retailers increased, while sales to manufacturers decreased. RV Products accounted for 16 percent of total sales with a focus on the European market.
JUVENILE & PET
Currency-adjusted sales increased 15 percent compared with the yearearlier quarter. The increase in sales of strollers was strongly driven by the launch of the upgraded version of our Thule Urban Glide 3 and Thule Urban Glide 4-wheel and the newly launched, next-generation series multisport and bike trailers, Thule Chariot. Thule Allax, the dog transportation crate that was launched in the first quarter, contributed to sales growth and in the third quarter Thule Bexey, a bike trailer for the dog transportation, was launched. Juvenile & Pet accounted for 12 percent of total sales.
PACKS, BAGS & LUGGAGE
Currency-adjusted sales in Packs, Bags & Luggage declined 4 percent year-on-year. Sales have declined for legacy products, which we continue to actively phase out. The Thule brand range also posted weaker sales. Packs, Bags & Luggage accounted for 9 percent of total sales in the quarter.
Introducing the Thule ReVert - our first vertical hitch-mounted bike rack that carries up to six bikes. Whether it's a family trip or a biking adventure with friends, Thule ReVert lets you bring along the crew´s rides effortlessly.
| Jul-Sept | Growth vs | Jan-Sept | Growth vs | |
|---|---|---|---|---|
| Share of sales per product category | 2024 | Q3/23 1 | 2024 | YTD/23 1 |
| Sport&Cargo Carriers | 63% | 5% | 61% | 6% |
| RV Products | 16% | 0% | 18% | -2% |
| Packs, Bags & Luggage | 9% | -4% | 8% | -1% |
| Juvenile & Pet | 12% | 15% | 13% | 9% |
1 Adjusted for changes in exchange rates and acquisitions
Financial statements
(Unless otherwise stated, all amounts are in SEK m)
Consolidated Income Statement
| Jul - Sep | Jan - Sep | Full-year | |||||
|---|---|---|---|---|---|---|---|
| Note | 2024 | 2023 | 2024 | 2023 | LTM | 2023 | |
| Net sales | 2 | 2 344 | 2 311 | 7 863 | 7 566 | 9 429 | 9 132 |
| Cost of goods sold | -1 339 | -1 393 | -4 487 | -4 412 | -5 470 | -5 395 | |
| Gross income | 1 006 | 918 | 3 377 | 3 154 | 3 959 | 3 737 | |
| Selling expenses | -482 | -455 | -1 478 | -1 381 | -1 917 | -1 820 | |
| Administrative expenses | -110 | -104 | -341 | -322 | -431 | -412 | |
| Operating income | 2 | 413 | 359 | 1 557 | 1 451 | 1 610 | 1 505 |
| Net interest expense/income | -15 | -30 | -59 | -62 | -81 | -84 | |
| Income before taxes | 399 | 329 | 1 498 | 1 389 | 1 529 | 1 420 | |
| Taxes | -98 | -67 | -339 | -314 | -347 | -321 | |
| Net income | 300 | 262 | 1 159 | 1 075 | 1 183 | 1 099 | |
| Net income pertaining to: | |||||||
| Shareholders of Parent Company | 300 | 262 | 1 159 | 1 075 | 1 183 | 1 099 | |
| Net income | 300 | 262 | 1 159 | 1 075 | 1 183 | 1 099 | |
| Earnings per share, SEK before dilution | 2.84 | 2.47 | 10.96 | 10.24 | 10.45 | ||
| Earnings per share, SEK after dilution | 2.84 | 2.47 | 10.96 | 10.23 | 10.44 | ||
| Average number of shares (millions) | 105.7 | 105.7 | 105.7 | 105.0 | 105.2 |
Consolidated Statement of Comprehensive Income
| Jul - Sep | Jan - Sep | Full-year | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | LTM | 2023 | |
| Net income | 300 | 262 | 1 159 | 1 075 | 1 183 | 1 099 |
| Items that have been carried over or can be carried over to net income | ||||||
| Foreign currency translation | -247 | -197 | 142 | 359 | -326 | -109 |
| Cash flow hedges | -14 | 47 | -44 | 23 | -32 | 35 |
| Net investment hedge | 55 | 28 | 22 | -37 | 70 | 11 |
| Tax on components in other comprehensive income | -6 | -4 | -2 | -9 | -12 | -20 |
| Items that cannot be carried over to net income | ||||||
| Revaluation of defined-benefit pension plans | -18 | 1 | -20 | 10 | -71 | -41 |
| Tax pertaining to items that cannot be carried over to net income | 4 | -0 | 4 | -2 | 15 | 8 |
| Other comprehensive income, net after tax | -228 | -124 | 102 | 344 | -357 | -115 |
| Total comprehensive income | 73 | 137 | 1 261 | 1 419 | 826 | 984 |
| Total comprehensive income pertaining to: | ||||||
| Shareholders of Parent Company | 73 | 137 | 1 261 | 1 419 | 826 | 984 |
| Total comprehensive income | 73 | 137 | 1 261 | 1 419 | 826 | 984 |
Consolidated Balance Sheet
| Sep 30 | Sep 30 | Dec 31 | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Assets | |||
| Intangible assets | 5 013 | 5 175 | 4 887 |
| Tangible assets | 2 196 | 2 116 | 2 122 |
| Long-term receivables | 7 | 8 | 7 |
| Deferred tax receivables | 305 | 303 | 281 |
| Total fixed assets | 7 522 | 7 602 | 7 297 |
| Inventories | 1 633 | 2 315 | 2 300 |
| Tax receivables | 372 | 235 | 199 |
| Accounts receivable | 906 | 1 074 | 706 |
| Prepaid expenses and accrued income | 181 | 172 | 199 |
| Other receivables | 103 | 153 | 172 |
| Cash and cash equivalents | 857 | 704 | 94 |
| Total current assets | 4 052 | 4 653 | 3 669 |
| Total assets | 11 574 | 12 256 | 10 966 |
| Equity and liabilities | |||
| Equity | 7 115 | 7 274 | 6 849 |
| Long-term interest-bearing liabilities | 1 652 | 2 412 | 2 038 |
| Provision for pensions | 237 | 162 | 205 |
| Deferred income tax liabilities | 406 | 387 | 399 |
| Total long-term liabilities | 2 296 | 2 961 | 2 642 |
| Short-term interest-bearing liabilities | 93 | 113 | 136 |
| Accounts payable | 600 | 515 | 649 |
| Tax liabilities | 262 | 195 | 78 |
| Other liabilities | 606 | 542 | 51 |
| Accrued expenses and deferred income | 545 | 607 | 513 |
| Provisions | 57 | 49 | 49 |
| Total short-term liabilities | 2 163 | 2 021 | 1 475 |
| Total liabilities | 4 459 | 4 982 | 4 117 |
| Total equity and liabilities | 11 574 | 12 256 | 10 966 |
Consolidated Statement of Changes in Equity
| Jan - Sep | Full-year | ||
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Opening balance, January 1 | 6 849 | 6 553 | 6 553 |
| Net income | 1 159 | 1 075 | 1 099 |
| Other comprehensive income | 102 | 344 | -115 |
| Total comprehensive income | 1 261 | 1 419 | 984 |
| Transactions with the Group's owners: | |||
| Dividend | -1 004 | -967 | -967 |
| New share issue | 0 | 273 | 273 |
| Warrants | 9 | -4 | 6 |
| Closing balance | 7 115 | 7 274 | 6 849 |
Consolidated statement of cash flow
| Jul - Sep | Jan - Sep | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Income before taxes | 399 | 329 | 1 498 | 1 389 |
| Adjustments for items not included in cash flow | 34 | 74 | 185 | 216 |
| Paid income taxes | -100 | -100 | -332 | -440 |
| Cash flow from operating activities prior to changes in working capital | 333 | 302 | 1 351 | 1 165 |
| Cash flow from changes in working capital | ||||
| Increase(-)/Decrease (+) in inventories | 221 | 360 | 712 | 947 |
| Increase(-)/Decrease (+) in receivables | 588 | 458 | -173 | -376 |
| Increase(+)/Decrease (-) in liabilities | -187 | -283 | 34 | -162 |
| Cash flow from operating activities | 955 | 838 | 1 924 | 1 575 |
| Investing activities | ||||
| Acquisition of subsidiaries | -7 | - | -7 | - |
| Acquisition/divestment of tangible/intangible assets | -34 | -59 | -183 | -166 |
| Cash flow from investing activities | -40 | -59 | -189 | -166 |
| Financing activities | ||||
| New share issue | - | 20 | - | 273 |
| Warrants | -1 | - | 9 | -4 |
| Dividend | - | - | -502 | -481 |
| Debt repaid/new loans | -426 | -325 | -476 | -672 |
| Cash flow from financing activities | -427 | -305 | -969 | -883 |
| Net cash flow | 489 | 473 | 766 | 525 |
| Cash and cash equivalents at beginning of period | 371 | 233 | 94 | 176 |
| Effect of exchange rates on cash and cash equivalents | -3 | -3 | -2 | 3 |
| Cash and cash equivalents at end of period | 857 | 704 | 857 | 704 |
Condensed Parent Company Income Statement
| Jul - Sep | Jan - Sept | Full-year | |||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2023 | |
| Other operating revenue | 6 | 5 | 17 | 16 | 21 |
| Administrative expenses | -12 | -27 | -44 | -60 | -84 |
| Operating income | -7 | -22 | -27 | -44 | -62 |
| Result from Shares in Subsidiaries | 0 | 0 | 0 | 0 | 600 |
| Interest income- and expense | -3 | -1 | -12 | -8 | -14 |
| Income after financial items | -10 | -23 | -39 | -51 | 524 |
| Appropriations | 0 | 0 | 0 | 0 | 120 |
| Net income before taxes | -10 | -23 | -39 | -51 | 644 |
| Taxes | 1 | 5 | 8 | 12 | -9 |
| Net income | -9 | -18 | -31 | -40 | 634 |
Balance Sheet – Parent Company
| Sep 30 | Sep 30 | Dec 31 | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Assets | |||
| Financial fixed assets | 4 164 | 4 889 | 4 530 |
| Total fixed assets | 4 164 | 4 889 | 4 530 |
| Receivables from group companies | 1 | 1 | 721 |
| Other current receivables | 24 | 35 | 10 |
| Cash and cash equivalents | 0 | 0 | 0 |
| Total current assets | 25 | 36 | 731 |
| Total assets | 4 189 | 4 924 | 5 261 |
| Equity and liabilities Equity |
707 | 1 049 | 1 734 |
| Other provisions | 37 | 32 | 32 |
| Liabilities to credit institutions | 1 510 | 2 250 | 1 903 |
| Liabilities to Group companies | 0 | 0 | 0 |
| Total long-term liabilities | 1 547 | 2 282 | 1 935 |
| Liabilities to Group companies | 1 404 | 1 077 | 1 546 |
| Other current liabilities | 531 | 516 | 46 |
| Total short-term liabilities | 1 935 | 1 593 | 1 592 |
| Total equity and liabilities | 4 189 | 4 924 | 5 261 |
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.
October 23, 2024
Board of Directors
Auditor's report
To the Board of Directors of Thule Group AB (publ) Corp. Reg. No.: 556770-6311
Introduction
We have reviewed the condensed interim financial information (interim report) of Thule Group AB (publ) as of 30 September 2024 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.
Malmö, October 23, 2024 Öhrlings PricewaterhouseCoopers AB
Sofia Götmar-Blomstedt Neda Feher Authorized Public Accountant Authorized Public Accountant Auditor in Charge
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.
NOT 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 2024 have had no material impact on the Group's earnings and financial position.
NOT 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.
| Jul - Sep | Jan - Sep | Full-year | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | LTM | 2023 | |
| Net sales to external customers | 2 344 | 2 311 | 7 863 | 7 566 | 9 429 | 9 132 |
| - Region Europe & RoW | 1 743 | 1 689 | 5 921 | 5 635 | 6 969 | 6 682 |
| - Region Americas | 601 | 622 | 1 942 | 1 931 | 2 461 | 2 450 |
| EBITDA | 490 | 427 | 1 771 | 1 645 | 1 890 | 1 763 |
| Depreciation/amortization on fixed assets | -76 | -69 | -214 | -193 | -279 | -259 |
| EBIT/Operating income | 413 | 359 | 1 557 | 1 451 | 1 610 | 1 505 |
| Net interest expense/income | -15 | -30 | -59 | -62 | -81 | -84 |
| Taxes | -98 | -67 | -339 | -314 | -347 | -321 |
| Net income | 300 | 262 | 1 159 | 1 075 | 1 183 | 1 099 |
All revenue is recognized at one point in time.
THULE GROUP INTERIM REPORT JULY–SEPTEMBER 2024
NOT 3. FAIR VALUE OF FINANCIAL INSTRUMENTS
| Fair value | ||
|---|---|---|
| Sep 30 | Sep 30 | |
| 2024 | 2023 | |
| Assets - Financial derivatives | ||
| Currency forward contracts | 16 | 13 |
| Currency swaps | 0 | 2 |
| Currency options | 0 | 0 |
| Interest rate swaps | 4 | 34 |
| Total derivative assets | 20 | 49 |
| Liabilities - Financial derivatives | ||
| Currency forward contracts | -2 | -7 |
| Currency swaps | -5 | -19 |
| Currency options | 0 | 0 |
| Interest rate swaps | -10 | 0 |
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.
NOT 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.
The current macroeconomic situation and geopolitical concern has led to uncertainty that makes it difficult to predict how demand and the total cost base will be impacted.
Key figures
| Jul - Sep | Jan - Sep | Full-year | |||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2023 | |
| Net sales, SEKm | 2 344 | 2 311 | 7 863 | 7 566 | 9 132 |
| Net sales growth, % | 1.4% | 8.0% | 3.9% | -10.9% | -9.9% |
| Net sales growth, adjusted %1 | 4.5% | 0.8% | 4.4% | -16.9% | -15.2% |
| Gross margin, % | 42.9% | 39.7% | 42.9% | 41.7% | 40.9% |
| Operating income (EBIT), SEKm | 413 | 359 | 1 557 | 1 451 | 1 505 |
| Operating margin, % | 17.6% | 15.5% | 19.8% | 19.2% | 16.5% |
| Earnings per share, SEK | 2.84 | 2.47 | 10.96 | 10.24 | 10.45 |
| Equity ratio, % | 61.5% | 59.3% | 61.5% | 59.3% | 62.5% |
| Leverage ratio | 0.5 | 1.0 | 0.5 | 1.0 | 1.1 |
1 Adjusted 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
Gross income as a percentage of net sales.
GROSS INCOME
Net sales less cost of goods sold.
EBIT MARGIN – OPERATING MARGIN
EBIT as a percentage of net sales. Operating income as a percentage of net sales.
EBIT – OPERATING INCOME
Income before net financial items and taxes.
EBITDA – OPERATING INCOME BEFORE DEPRECIATION/AMORTIZATION/IMPAIRMENT Income before net financial items, taxes, depreciation/amortization and impairment of tangible and intangible assets.
ORGANIC GROWTH, CURRENCY-ADJUSTED
The change in net sales for the period adjusted for structural changes and currency effects. Organic growth excludes the effects of structural changes in the Group's structure and exchange rates, which enables the comparison of net sales over time, excluding the effects of acquisitions for example.
NET SALES GROWTH, CURRENCY-ADJUSTED
The change in net sales for the period adjusted for currency effects.
NET DEBT
Gross debt less cash and cash equivalents. Gross debt is the total of long- and short-term borrowing, derivative instruments, capitalized transaction costs and accrued interest. Net debt is a metric used for monitoring the debt trend and the scope of financing 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.
LTM
Rolling 12-month.
EARNINGS PER SHARE
Net income for the period divided by the average number of shares during the period.
LEVERAGE RATIO
Net debt divided by underlying EBITDA (LTM). This APM is a debt ratio that indicates how many years it would take to repay the company's debt, provided that its net debt and EBITDA are constant, without factoring cash flows pertaining to interest, tax and investments.
EQUITY RATIO
Equity as a percentage of total assets.
Calculation table alternative performance measures
| Jul - Sep | Jan - Sep | ||||
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | ||
| Organic growth, currency-adjusted | |||||
| Change in net sales, % | 1.4 | 8.0 | 3.9 | -10.9 | |
| Exchange rate fluctuations, % | 3.1 | -7.2 | 0.5 | -6.0 | |
| Net sales, currency-adjusted growth, % | 4.5 | 0.8 | 4.4 | -16.9 | |
| Structural changes, % | -0.1 | - | 0.0 | - | |
| Organic growth, % | 4.4 | 0.8 | 4.4 | -16.9 | |
| EBITDA | |||||
| Operating income (EBIT), SEKm | 413 | 359 | 1 557 | 1 451 | |
| Reversal of depreciation/amortization and impairment, SEKm | 76 | 69 | 214 | 193 | |
| EBITDA, SEKm | 490 | 427 | 1 771 | 1 645 | |
| Net debt | |||||
| Long-term interest-bearing liabilities, gross, SEKm | 1 659 | 2 413 | 1 659 | 2 413 | |
| Derivative liabilities, long-term, SEKm | 10 | 0 | 10 | 0 | |
| Short-term interest-bearing liabilities, SEKm | 86 | 88 | 86 | 88 | |
| Derivative liabilities, short-term, SEKm | 7 | 25 | 7 | 25 | |
| Capitalized financing costs, SEKm | -17 | -2 | -17 | -2 | |
| Accrued interest, SEKm | 0 | 1 | 0 | 1 | |
| Gross debt, SEKm | 1 746 | 2 526 | 1 746 | 2 526 | |
| Derivative assets, SEKm | -20 | -49 | -20 | -49 | |
| Cash and cash equivalents, SEKm | -857 | -704 | -857 | -704 | |
| Net debt, SEKm | 869 | 1 773 | 869 | 1 773 | |
| Leverage ratio | |||||
| Net debt, SEKm | 869 | 1 773 | 869 | 1 773 | |
| EBITDA LTM, SEKm | 1 890 | 1 704 | 1 890 | 1 704 | |
| Leverage ratio | 0.5 | 1.0 | 0.5 | 1.0 | |
| Equity ratio | |||||
| Equity, SEKm | 7 115 | 7 274 | 7 115 | 7 274 | |
| Total assets, SEKm | 11 574 | 12 256 | 11 574 | 12 256 | |
| Equity ratio, % | 61.5 | 59.3 | 61.5 | 59.3 |
Other Information
Financial calendar
Interim report October–December, February 7, 2025 Interim report January–March, April 29, 2025 Thule Group AGM (Malmö) April 29, 2025 Interim report April–June, July 15, 2025 Interim report July–September, October 22, 2025
Contacts
Toby Lawton, CFO Tel: +46 (0)70-242 29 47 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 (car seats, strollers, bike trailers, child bike seats and dog transportation), RV Products (awnings, bike carriers and tents for RVs and caravans) and Packs, Bags & Luggage (hiking backpacks, luggage and camera bags).
Thule Group has about 2,600 employees at nine production facilities and 35 sales offices worldwide. The Group's products are sold in 138 markets and in 2023, sales amounted to SEK 9.1 billion. www.thulegroup.com.
Thule Motion 3, the latest edition of the world's top-selling roof box, is built to meet the needs of today's evolving automotive market.
Thule Group AB (publ) Fosievägen 13, SE-214 31 Malmö Corp. Reg. No: 556770-6311 www.thulegroup.com
