Thule Group's Operations
2023 – new products drive growth
Thule Group’s sales are managed and reported in two regions, Region Europe & Rest of World (RoW) and Region Americas, which altogether represent 138 markets. In both regions, the trend was characterized by a challenging bike market during the first six months, and far more positive signals in the second half of the year.
In 2023, sales in the first half of the year declined year-on-year. The main reason for the lower sales was the sharp slowdown in sales of bike-related products to retailers, who lowered their inventory following excessively large pre-season orders in 2022. The trend turned upward during the second half of the year, when bike retailers’ inventory of Thule products returned to healthier levels. The expected sales decrease in the product category, RV Products (products for recreation vehicles and caravans), stemming from the current weak period in the industry.
The underlying trend, with an increased interest in and demand for sports and outdoor products, remains strong and is providing us with long-term tailwinds.
We have strong market positions and are investing significant resources in quality and innovation. During the year, we invested 6.9 percent of sales in product development, which is the highest level, historically. We regularly invest in strengthening our own competitiveness in order to increase our market share in all our product categories, and our growth, through consumer-driven innovations and by improving product quality in our plants, which fulfill stringent requirements on safety.
Sales for the Group declined SEK 1,006m to SEK 9,132m, corresponding to a decrease of 9.9 percent, (-15.2 percent after currency adjustment). The EBIT margin amounted to 16.5 percent (16.8). Cash flow from operating activities was very strong and totaled SEK 1.85 billion. During the year, we focused stringently on reducing inventory levels, which resulted in a reduction equivalent to more than SEK 800 million compared to the preceding year. Further reductions are planned for 2024.
Breakdown of sales performance across our two regions: Region Europe & RoW had a decline in sales of 11.9 percent after currency adjustment, and Region Americas had a decline in sales of 22.9 percent after currency adjustment.
Thule Group has shared global processes for product development, purchasing, manufacturing, logistics and marketing.