Thule is moving ahead with its plans to double the size of the company by the end of 2007, and is actually well on its way to accomplishing this goal by the end of the current financial year, one year ahead of schedule. This would make Thule an $825 million company when it was reporting sales of roughly $400 million when it was acquired by Candover in November of 2004.
For the first half, Thules sales increased 29.3% to SEK 1.97 billion ($259.4 mm) compared to SEK 1.52 billion ($214.0 mm) last year. The higher sales numbers were due to the combination of organic growth and acquired companies. Over the past twelve months, Thule has acquired nine different brands in Europe and North America. Organic sales growth was 13.4% during the first half. The companys earnings are out-pacing sales with a 42% jump in first half EBITA to SEK 274 million ($36.1 mm) compared to SEK 193 million ($27.1 mm) last year.
The North American division reported sales of $41 million for the first half, compared to $36 million last year. During an exclusive interview with The B.O.S.S. Report, Thules North American president, Fred Clark, said that higher gas prices are certainly affecting consumer spending patterns, but not negatively. “When SUVs were becoming popular, we clearly saw a shift to more rear-mounted and behind-the-car product, because they just could not access the top of the car. Now people are buying smaller cars and were seeing great growth in roof-top carriers,” he said.
Thule is also seeing a shift away from lower-end car-top boxes to more aerodynamic higher-end models. Sales of both bike and boat carrying products are up in the double digits for Thule, while ski is relatively flat, partially cannibalized by the increase in car-top box sales.
“Watersports has been a huge success for us. I think for us, that and a combination of the new products are driving the growth,” said Clark. “Over the last four years we have been growing faster than the industry.”
New product introductions have been particularly important to growth, accounting for about 35% of sales so far this year. Moving forward, Thule will be working on integrating acquisitions, including Brink International, Valley Industries, and SportRack Accessories as soon as the EU competition authority approves the deal.