Thule Group (THULE) Investor Update summary

2024 business performance and market environment

• Achieved a return to sales growth and improved EBIT margin after two years of decline, with organic growth over 4% and EBIT margin up nearly a percentage point.

• 2024 marked the most intense product launch year, introducing new categories like dog transportation and car seats.

• Opened five new D2C markets, contributing to direct-to-consumer sales growth and improved supply chain efficiency, reducing inventory by over SEK 1 billion.

• Won multiple international design awards, including Red Dot Design Team of the Year and Europe's top car seat test.

• European market showed strength, while North America and the RV OE segment faced tougher conditions.

Financial performance

• Net sales for the last twelve months (Q3 2024 LTM) reached SEK 9.4 billion.

• EBIT for the same period was SEK 1.6 billion, with an EBIT margin of 17.1%.

Q4 business mix and seasonality

• Q4 is seasonally the smallest quarter, with a higher share of RV OE sales, which are down close to 20% due to industry production stops.

• Bike-related sales are minimal in Q4 due to seasonality, while RV OE dominates the mix, amplifying the impact of its decline.

• Major car seat launch in over 20 European countries in Q4, incurring upfront costs but expected to drive long-term growth.

• Quad Lock acquisition closed in December, expected to help even out seasonality in future quarters.