Thule Group (THULE) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered 4% organic and FX-adjusted sales growth to SEK 2,344m, with stronger performance in Europe (6%) than Americas (1%), driven by new and bike-related products despite tough markets, especially in North America.

• Gross margin improved to 42.9% (up from 39.7%), and EBIT margin reached 17.6% (up from 15.5%), the highest for a third quarter outside the pandemic period.

• Major product launches and expansion into new categories, including dog transportation and car seats, supported growth.

• Won the prestigious ADAC car seat consumer test in Europe, boosting brand recognition.

• Strong cash flow from operations at SEK 955m, with inventory reduction targets on track.

Financial highlights

• Q3 revenue reached SEK 2,344m, with 4% organic and FX-adjusted growth year-over-year; YTD net sales at SEK 7,863m.

• EBIT for Q3 was SEK 413m (margin 17.6%), up from SEK 359m (15.5%); YTD EBIT margin at 19.8%.

• Net income YTD at SEK 1,159m; Q3 net income at SEK 300m, up from SEK 262m.

• Cash flow from operations in Q3 was SEK 955m; YTD cash flow from operations at SEK 1,924m.

• Net debt to EBITDA reduced to 0.5x at end of Q3.

Outlook and guidance

• Market expected to remain tough, especially in North America and RV OE segment.

• Continued focus on product development, new launches, and D2C expansion, with European car seat rollout to expand to over 20 countries in Q4 2024.

• Price increases planned for January 2025 on existing products, in line with historical practice (1.5%-2%).

• SG&A and development costs for 2024 expected to be in line with 2023.

• Management expects long-term growth tailwinds from active lifestyle trends.