Quadlock acquisition buoys Thule’s Q1 results amidst North American uncertainty

Thule’s recent Quadlock acquisition has boosted sales and profitability in Q1, despite added market uncertainty from the North American market.

Thule saw net sales grow 10% in Q1, at SEK 2,662m (2,420), with 12.7% delivered from the Quadlock acquisition. The group saw a 2.9% decrease in organic growth and a 0.3% increase from exchange rate fluctuations.

In the detail, Thule noted higher product development costs in the first half of the year, designed to maximise sales in the spring season, impacting margin in the short term. However, margin was high, at 44.8% (41.2%) with the increase driven by continued positive trend and by Quad Lock’s higher gross margin. EBIT was on a similar level to last year at SEK 401m (412m).

On the topic of new product, Thule said the new North American bike carrier Thule Verse has been warmly received. There is development incoming for new categories too, including its recently launched dog range (not bike related).

Back to Quad Lock, Thule said: “Historically, many of our entries into new categories have taken place through acquisitions that we have integrated and developed into Thule. Late last year, we acquired Quad Lock, the global market leader for performance phone mounts for cyclists, motorcyclists and other adventurers. As a global market leader in a growing niche, with the best products in the market, a strong history of innovation and product development and being known for quality, safety and an active life outdoors – Quad Lock fits very well with Thule and our strategy. The beginning of our collaboration has been positive with sales increasing over 20 percent in the first quarter, successive integration in identified areas and with employees from both organizations already having switched locations between Australia and Sweden. The growth opportunities here are plentiful.”

Focused and long-term investments

Thule emphasised it is acutely focused on its place in the market, lending it stability despite the broader economic challenges: “We are global market leaders in our most important product categories and sell premium products to enthusiasts who are willing to pay,” said CEO and President Mattias Ankarberg. “We have our own manufacturing in Europe and North America, and a financial position that allows us to invest for the long term. We also have extensive experience of managing fluctuations in our business environment, and with the help of our skilled employees, we will continue adapting our operations to market conditions.” Product development will continue to be key for the firm, including filling attractive niches. Increasing visibility with consumers is also seen as a priority for the firm, as well as increasing efficiency and capacity utilisation in its supply chain.

“We expect the market to remain difficult, particularly in North America. We are facing the future with strong market positions, a track record of adaptability and long-term investments. I look forward to continuing the journey toward a larger, more profitable Thule – and the many new products that will be launched already in the second quarter.”