Thule Group raised its long-term growth targets after reporting sales jumped 38 percent on a currency-neutral basis in 2021. The higher growth target also reflects its plan to enter two new categories, car seats and dog transport products.
“When summarizing 2021, it is satisfying to confirm that our impressive sales growth of +38 percent versus 2020 means that we are tracking several years ahead of our previously communicated long-term goal of doubling 2020 sales by 2030”, said Magnus Welander, CEO and president, in a statement.
“We have therefore decided to update the sales growth target to double the 2021 revenue over the coming 9 years and reach SEK 20 billion by 2030. This means that the 2030 target has been raised with 4.4 Bio SEK as compared to the target presented 1 year ago, with the strong performance in 2021 and the entry into the new product categories of course being strong contributors to the higher growth ambition. The EBIT-Margin target of maintaining the current high levels of >20 percent and the recently increased Dividend target of >75 percent of Net Income will be kept on the same high level.”
Under the changes, Thule now expects sales to reach SEK 20 billion in sales by 2030, up from a previous plan to double sales by 2030 to SEK 15.6 billion in sales. Sales in 2021 were SEK 10,386 million against SEK 7,828 million in 2020, an increase of 32.7 percent on a reported basis and 37.7 percent on a currency-neutral basis.
The goal for an EBIT margin of greater than 20 percent is the same as before. The goal of dividend payouts remains unchanged. Thule also maintained its long-term sustainability targets presented in April 2021.
Regarding its entry into the car seat and dog transport product categories in 2023, Welander said, “Both of these categories are characterized by traits that fit the Thule Group organization and the Thule consumer brand well. Products that enable an active life, with a technical content that focuses on safety and ease of use and where consumers are prepared to pay for premium products designed by brands with strong quality and sustainability profile.”
Photo courtesy Thule
