09/04/2020

9 April 2020
9 April 2020, Comments Comments Off on Thule Group annual report 2019 thanks strong growth in RV Products for sales increase
Thule Group annual report 2019 thanks strong growth in RV Products for sales increase

According to the Thule Group annual report for 2019, strong growth in its business categories of Active with Kids and RV Products in the Europe & ROW regions was the largest factor behind its 8.5 percent increased sales (corresponding to a currency-adjusted growth of 3.9 percent).

Thule Group is an international Group with sales of SEK 7,038m in 140 countries. It is a market leader in several product categories, such as roof racks, rooftop cargo carriers and bike racks for vehicles, as well as in certain child-related products, such as bicycle trailers. It is also a leader in the European market for our niche categories for RVs and caravans.

Thule Group’s core brand Thule grew more than six percent during the year and accounted for 83 percent of sales at year end. It continued to broaden the brand in terms of product offering during the year and also strengthened brand communications.

The largest Thule product category, Sport&Cargo Carriers, posted stable growth of one percent in local currency during the year. The new sub-category of rooftop tents, which was added through the acquisition of Tepui Outdoors in the end of 2018, grew quickly in the North American market and these products will be sold under the Thule brand starting in the first quarter of 2020.

In December 2019, Thule also carried out a minor, supplementary acquisition through the purchase of North America’s leading manufacturer of roof mounted fishing rod vaults. The acquisitions expand Thule’s growing product portfolio with a focus on an active lifestyle in the outdoors and adventure camping segment.

RV Products delivered another year of very strong growth of 13 percent. This was helped by the European RV market, which performed better than expected, with market growth of around eight percent. A strong product portfolio focused on the quickly growing category of smaller RVs for younger users and new products, such as the innovative bike rack Thule VeloSlide, combined with a high level of service to major customers, contributed to growth that far exceeded the market’s.

In RV Products, Thule is focusing on the European market, which accounts for 95 percent of sales in this category. It is a market leader in terms of awnings and bike racks for motorhomes and caravans in the European market, which again posted very strong growth of eight percent during the year.

The German market was also very positive, with growth of more than 10 percent, while the market declined in Sweden and the UK, and was only slightly positive in southern Europe.

The trend with the greatest impact on the industry is the sale of smaller motorhomes. Thule says that a new generation of young consumers appreciates the sense of freedom that a holiday in an RV can offer, and in parallel, the growing demographic of people aged 50+ wish to continue living an active and sporty life. As this sector is also impacted by access to financing for such a large capital purchase as a motorhome or caravan, and our products are essentially mounted in connection with their purchase, RV Products is the most sensitive product category to the economic cycle. The underlying annual growth in the European market is estimated at five percent, on average, for the next five years.