STOCKHOLM (BRAIN) — Thule Group's first-quarter net sales increased 20% despite continued pandemic hurdles — including global supply chain challenges, rising costs in raw materials and shipping, and employee absenteeism — and most recently the war in Europe.
Net sales for the quarter were SEK 3,034 million ($312 million) compared with SEK 2,538 million at the same time last year. While accounting for less than 1% of sales, Thule immediately stopped sales to Russia and Belarus after the Russian invasion of Ukraine in late February. Thule has no suppliers in those three countries.
"Events in the world were overwhelming in the first quarter of 2022," said Thule President and CEO Magnus Welander, who added price increases and efficiency measures helped the company compensate. "Russia's invasion of Ukraine, continued challenges in global supply chains, and substantial cost increases have affected each and every one of us. Considering this situation, I am very pleased that we continue to increase sales with unchanged high profitability."
Year-over-year net income rose 18%, from SEK 447 million to SEK 527 million; and earnings per share by the same margin, from SEK 4.28 to SEK 5.04.
In the Americas, net sales increased 41% year-over-year, with all four product categories growing, "where Canada excelled in particular," Welander said.
Thule is investing resources to further expand its production capacity to meet demand, despite longer lead times in building materials and automation equipment. Welander estimated that retail inventory has returned to similar levels as before the pandemic in time for the peak season.
He said Thule plans to enter two additional product categories next year, and will announce them on May 11.
Thule's corporate headquarters is in Stockholm. Its stock is traded on OTCMKTS under the THULE symbol. Thule stock quote is at Marketwatch.com.
