In This Article:
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Organic Revenue Growth: 4% overall, with 6% in Europe and the rest of the world, and 1% in the Americas.
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Gross Margin: 42.9% for Q3, up 2.8% from last year.
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EBIT Margin: 17.6% for Q3, the highest ever for the third quarter excluding pandemic years.
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EBIT: SEK 413 million for Q3.
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Cash Flow from Operations: Almost SEK 1 billion for Q3.
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Net Sales: SEK 9.4 billion on a 12-month basis.
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Net Income Year-to-Date: SEK 1.159 billion.
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Free Cash Flow from Operations: SEK 1.741 billion year-to-date after CapEx.
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Debt-to-EBITDA Ratio: Reduced to 0.5x at the end of Q3 2024.
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Sport & Cargo Carriers Growth: 5% currency adjusted for Q3.
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Packs, Bags & Luggage Decline: 4% in Q3.
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Juvenile & Pet Sales Growth: 15% in Q3.
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RV Products Sales: Flat compared to last year for Q3.
Release Date: October 23, 2024
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 (THUPY) achieved a 4% organic growth in Q3 2024, with stronger performance in Europe and the rest of the world compared to the Americas.
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The company reported a record-high EBIT margin of 17.6% for the third quarter, excluding the pandemic years.
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Thule Group AB (THUPY) maintained a strong cash flow from operations, reaching almost SEK1 billion in the quarter.
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The company won the prestigious ADAC car seat consumer test in Europe, enhancing its brand reputation.
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Thule Group AB (THUPY) successfully launched new products, including in the dog transportation category, and expanded its direct-to-consumer business to six new countries.
Negative Points
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The North American market remains challenging, with cautious consumer behavior and tough market conditions.
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Packs, Bags & Luggage category saw a decline of 4% in the quarter, continuing the trend of declining legacy products.
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The RV Products segment experienced flat sales, with a decline in sales to OE customers offset by growth in the dealer channel.
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The company faces higher SG&A expenses due to investments in new product categories and marketing efforts.
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Inventory levels have been reduced more than anticipated, which may impact production and sales in the short term.
Q & A Highlights
Q: Could you provide insights into the car seat launch in the EU and its reception so far? A: Mattias Ankarberg, CEO, explained that the car seat launch has been well-received, with strong placements in premium retailers and positive test results. The focus has been on establishing a premium position rather than volume. The launch in more than 20 new markets in Q4 is expected to add volumes, and production is being ramped up to ensure quality and efficiency.