Thule Group CEO and President Mattias Ankarberg reported that the 2024 fourth quarter was “intense but successful.”
In a letter to investors accompanying the company’s fourth quarter and full year 2024 results, Ankarberg noted that Thule launched car seats in more than 20 countries, acquired Quad Lock, and increased sales and profitability.
“Intense and successful are two words that also describe the year as a whole,” he said. “We launched more new products than ever before, added three new product categories, and commenced sales in five new countries via thule.com.” He added that 2024 was when the company returned to growth, with increased profitability and record cash flow.
Fourth Quarter Summary
Consolidated sales in the fourth quarter, seasonally the smallest quarter of the year for Thule, increased 7.2 percent year-over-year to SEK 1,678 million, compared to SEK 1,566 million in the prior-year quarter, said to be mainly due to the inclusion of the recently-acquired Quad Lock in December sales. Organic sales were flat, with a decline of half a percent.
Thule reported that 6.8 percent of the 7.2 percent increase came from acquisitions, -0.6 percent organically and 1.0 percent from exchange rate fluctuations.
“The market continues to be tough,” Ankarberg added. “The North American market remains more challenging than its European counterparts. In RV Products, where the market is going through a difficult period, several manufacturers (OE) have reduced their production levels and reduced their purchases from Thule. Even if sales to dealers increased, overall sales for RV Products declined 7 percent.”
In Bike, which is a big market for Thule, the recovery continued in the premium segment and sales of bike-related products increased, strengthened by the new products of 2024. Still, bike-related products represent a low share of sales in the fourth quarter.
Growth was reportedly strongest within the Juvenile & Pet segment, which increased 14 percent, driven by new versions of our best-selling products together with the new categories of dog transportation and car seats. We started up sales via thule.com in one additional country, Ireland, contributing to growth in the DTC channel.
The gross margin for the fourth quarter increased to 41.6 percent of sales, a 440 basis-point improvement from 37.2 of sales in the prior year fourth quarter.
Operating loss for the quarter amounted to SEK 35 million, compared to operating profit of SEK 53 million in Q4 2023. Adjusted operating income (excluding transaction costs of SEK 100 million in the fourth quarter of 2024 attributable to the acquisition of Quad Lock) amounted to SEK 65 million, corresponding to a margin of 3.8 percent of sales in Q4, compared to 3.4 percent of sales in Q4 2023.
Net loss for the quarter amounted to SEK 37 million, compared to net income of 24 million in the prior-year Q4 period. Basic earnings per share amounted to a loss of SEK 0.35 in Q4, compared to an EPS of SEK 0.23 for the 2023 fourth quarter.
The adjusted EBIT margin, excluding transaction costs related to the acquisition of Quad Lock, amounted to 3.8 percent in Q4, compared to 3.4 percent in Q4 2023.
Cash flow from operating activities totaled SEK 386 million for the quarter, compared to SEK 276 million in the prior-year Q4 period.
Full-Year Summary
Ankarberg said full-year 2024 sales increased 4.5 percent despite a challenging market. “Growth was driven by our many well-received new products and a recovery in certain parts of the bike market,” he shared.
Net sales for the full year increased 4.5 percent to SEK 9,541 million in 2024, compared to SEK 9,132 million in 2023. Thule said 1.2 percent of the 4.5 percent increase came from acquisitions, 3.5 percent from organic growth and -0.2 percent from exchange rate fluctuations.
Operating income for the full year amounted to SEK 1,522 million, compared to SEK 1,505 million in 2023. Adjusted operating income amounted to SEK 1,622 million, or 17.0 percent of sales, compared to SEK 1,505 million, or 16.5 percent of sales, in 2023.
Net income for the full year amounted to SEK 1,122 million, or SEK 10.59 per share, compared to SEK 1,099 million, or SEK 10.45 per share in 2023.
Full-year Adjusted EBIT margin increased to 17.0 percent of sales, compared to 16.5 percent in the prior-year Q4 period, despite a record number of product launches and major investments in product development.
Cash flow from operating activities was strong and totaled SEK 2.3 billion for the year.
“We continued to focus on reducing inventory levels and achieved this year’s target, and we have now freed up SEK 1.2 billion of capital tied up in inventory over the past two years,” Ankarberg added. “We have the financial capacity to both distribute earnings to our shareholders while at the same time investing significant funds for the future.”
The CEO concluded his letter by commenting that 2024 saw a return to growth despite a challenging market.
“During the year, we also clarified our strategy, strengthened existing market positions and laid the foundation for success in several product categories. We are now continuing to make long-term investments in areas that increase our competitiveness and create value for Thule. More people also want to live active lives, giving us a long-term tailwind.” Ankarberg said.
Image courtesy Thule Group
