Industry and market-related risks
Thule Group continually assesses and evaluates the risks that the company may be exposed to. In our compilation of industry and market-related risks, we include the management of business environment risks, both strategically through business and product development as well as operationally through daily sourcing, sales and marketing activities.
General business cycle and its impact on demand
Risk level
Likelihood
Impact
Description
- Changes in the business cycle, as well as interest rate changes and inflation, that lead to reduced spending power may have a negative effect on Thule Group’s earnings.
- Significant regional and global events such as the coronavirus pandemic and changes in the security situation could materially impact the economies of affected areas, which could negatively impact the operations and earnings of Thule Group.
- A changing global security situation can lead to declining optimism among consumers around the world, which can lead to reduced interest in purchasing Thule products and thereby have a negative impact on Thule Group’s earnings.
- RV Products is the Group’s only cyclical product category, since purchases of products in this category normally coincide with the purchase of the vehicle (RV or caravan), which comprises a substantial financial investment for the consumer. In 2023, the product category was negatively impacted by increased costs for financing purchases due to higher interest rates around the world.
Counteracting factors and management
- Thule Group has sales in 138 markets, thereby reducing the impact risk of an event in any one market.
- The sports and outdoor industry’s historically relatively limited exposure to rapid fluctuations during the business cycle allows time for adaptation.
- Thule’s various product areas means reduced exposure to impact from the economic cycle.
- Thule Group’s purchasing, manufacturing and retailing organization has proven flexibility, resulting in a very high degree of adaptability.
Competition legislation
Risk level
Likelihood
Impact
Description
- Thule Group’s guidelines on competition legislation can be contravened.
- Thule Group’s strong position in certain product categories and in some markets may entail restrictions on acquisitions and other business decisions.
Counteracting factors and management
- Thule Group works continuously with training employees in the relevant legislation and regulations.
- Thule Group conducts continuous internal audits.
- Thule Group engages expert legal support in cases of uncertainty.
Competition
Risk level
Likelihood
Impact
Description
- Thule Group’s operations are exposed to competition. If this competition should increase, it could have an adverse impact on Thule Group’s earnings.
Counteracting factors and management
- Activities such as product development, quality work and prize-winning designs as well as proven security of supply and comprehensive sustainability efforts, are focused on maintaining the Group’s market position and strengthening its competitiveness.
Demand for underlying products
Risk level
Likelihood
Impact
Description
- In some cases, demand for Thule Group’s range is dependent on demand for other underlying products. If such demand should change, it could entail an adverse impact on Thule Group’s earnings.
Counteracting factors and management
- Thule Group consistently monitors consumer trends and developments in adjacent industries to which the Group has a link, and is accustomed to quickly adapting to new trends, demand and needs.
- Thule Group’s proven flexibility in its purchasing and logistics organization entails a very high degree of adaptability.
Reputation
Risk level
Likelihood
Impact
Description
- Thule Group’s sales and results are dependent on the Group’s reputation remaining positive.
Counteracting factors and management
- Thule Group conducts continuous preventative work by providing training and information about the Group’s Code of Conduct. Procedures are in place encompassing how the products are developed and tested to how we ensure compliance with competition law and sustainability issues.
- The Group’s quality work is certified in line with ISO 9001:2015 and in 2024 will be certified in line with ISO 45001.
- Thule Group has an established product recall policy in place with clear procedures and established steps for escalation and decision.
Local business risks in countries with operations
Risk level
Likelihood
Impact
Description
- Thule Group’s business is subject to local laws and regulations in countries where the Group is active.
- Violation of local laws and regulations could impede the Group’s investments and result in increased costs.
Counteracting factors and management
- Thule Group’s Code of Conduct is comprehensive and regulates local behavior. At the same time, Thule Group also implements various preventive measures to further reduce the risk of regulatory non-compliance.