In This Article:
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Revenue: SEK2.662 billion, a 10% increase from last year.
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Organic Growth: 2.9%, with Europe at +0.4% and North America declining by 12.6%.
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Gross Margin: Increased to 44.8% from 41.2% last year.
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EBITDA: SEK401 million, compared to SEK412 million last year.
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EBIT Margin: 15.1%, impacted by earlier phasing of product launch costs.
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Net Income: SEK266 million for the quarter.
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Cash Flow from Operations: Negative SEK334 million, influenced by seasonal working capital increase.
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Net Debt: Increased by SEK185 million, with a net debt to EBITDA ratio of 1.94%.
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Quad Lock Acquisition: Contributed significantly to gross margin improvement, with over 20% sales momentum.
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Inventory Reduction Target: Aiming to reduce inventory by SEK200 million in 2025.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Thule Group AB (THLPF) reported a 10% increase in total sales compared to the previous year.
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Gross margin reached an all-time high of 44.8%, driven by the acquisition of Quad Lock and improved product mix.
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The company continues to see growth from new Thule products and recently launched product categories.
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Thule Group AB (THLPF) received 7 new design awards in 2025, highlighting its strong product design capabilities.
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The integration of Quad Lock is progressing well, with over 20% sales momentum and maintained high margins.
Negative Points
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North American sales declined by 13%, reflecting a weak market exacerbated by recent tariff announcements.
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Cash flow from operations was negative at SEK334 million, impacted by seasonal working capital increases.
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The EBIT margin decreased to 15.1% from 17% last year, affected by the earlier phasing of product launch costs.
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Retailers are cautious, impacting inventory levels and sales, particularly in North America.
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The company decided to halt the North American car seat project due to a less favorable market outlook.
Q & A Highlights
Q: Could you explain the balance between OpEx and gross margins, considering the company's shift towards higher gross margins and higher OpEx? A: Mattias Ankarberg, CEO: We are pleased with the gross margin development, which has been growing nicely. The increase in SG&A is due to a challenging market and our investment in new product categories. We continue to focus on driving growth, which results in higher gross margins and SG&A, but with a positive net effect. In North America, we are adapting to the market with changes in focus, pricing, and cost management.