STOCKHOLM (BRAIN) — Thule Group net sales for the first quarter of the year increased 46% year-over-year, which was helped by sales in the Americas that jumped 83% after currency adjustment.
Sport and cargo carriers drove the Region Americas growth with bike product demand leading the way.
Overall net sales for the quarter ending in March were SEK 2,538 million ($302 million) compared to SEK1,744 million in Q1 2020, which was the onset of the COVID-19 pandemic. When adjusted for exchange rate fluctuations, net sales increased 56%.
Net income for the quarter was SEK 447 million, up from SEK 241 million, an 86% increase year-over-year. Earnings per share was SEK 4.28, up 83% from SEK 2.33 in 2020.
"The positive macro trend of the past few years, with increasing numbers of consumers seeking an active life, also has meant a healthy market growth for Thule's products," said Thule CEO and President Magnus Welander. "This long-term trend has been reinforced by the restrictions on international travel due to the pandemic, with more people opting for 'staycations' or simply enjoying a short day trip with activities in their local area."
Welander said uncertainty remains with pandemic-related lockdowns in some countries and supplier shortages due to increased demand for outdoor products.
"However, we remain convinced that the positive trend for leisure and vacation activities closer to home will remain strong for our product categories," he said. "With our sought-after products and very flexible production in and around our main markets, we expect a continued very favorable trend during the year."
With the first-quarter earnings report released on Earth Day, Thule also announced its long-term sustainability goals. They are closely linked to the company's decision last year to commit to the Science Based Targets initiative, with the goal of not increasing the earth's average temperature by more than 2.7-degrees Fahrenheit.
By 2030, Thule aims for:
- A 46% reduction in greenhouse gases from its production sites compared to 2019.
- 100% renewable electricity at manufacturing sites and offices.
- A 28% greenhouse gas reduction related to purchased materials and upstream and downstream logistics, compared to 2019.
- Other long-term sustainability goals also include water consumption, recycling, and health and safety.
Thule's corporate headquarters is in Stockholm. Its stock is traded on OTCMKTS under the THULE symbol. Thule stock quote at Marketwatch.com.
