The Thule Group has presented new long-term financial goals and sustainability ambitions, in connection with its presentation of Q1’s financial results.
Net sales for the first quarter of 2021 amounted to SEK 2,538m (1,744), corresponding to an increase of 45.5%. Adjusted for exchange rate fluctuations, sales increased 56%. Operating income amounted to SEK 594m (325), corresponding to a margin of 23.4% (18.7). Adjusted for exchange rate fluctuations, the operating margin increased 4.2 percentage points.
New long-term targets have been established by the board of directors with doubled sales by 2030, a maintained EBIT margin of >20%, a raised dividend level to >75% of net profit.
“When summarising 2020, it is satisfying to confirm that we achieved all long-term financial goals, even earlier than planned,” said Magnus Welander, CEO and president. “We have continuously delivered annual sales increases, improved profitability and a very strong cash flow.
“In addition to this, we have taken significant sustainability steps, thanks to our genuine and solid sustainability work. Last year we, therefore, reached the majority of the 2020 sustainability goals we had aimed for in recent years.”
The Thule Group said it will continue the dedicated long-term sustainability work that has been a part of the company’s long-term way of operating since its founding in Hillerstorp, Sweden, in 1942. The new sustainability targets are, in terms of environmental aspects, closely linked to the company’s decision in the autumn of 2020 to commit to the Science Based Targets initiative (SBTi), and therefore have a clear focus on fulfilling the Paris Agreement’s ambition not to increase the earth’s average temperature by more than 1.5°C.
The company is targeting a 46% reduction, in absolute numbers, of greenhouse gases from its production sites, compared with the base year 2019, as well as 100% renewable electricity at its own manufacturing sites and offices. It is also aiming for an absolute reduction of greenhouse gases by 28% related to purchased materials and upstream and downstream logistics, compared with the base year 2019.
In addition to the environmentally-focused sustainability targets related to SBTi, Thule Group has additional long-term sustainability targets linked to, among other things, water consumption, recycling, health and safety. These targets are presented in more depth on the corporate website.
“Long-term sustainable and profitable organic growth remains our biggest focus,” said Welander. “The results we have delivered since the IPO in 2014 are clear proof that our strategy and our operational work have been successful. We are convinced that the defined strategy is right for Thule Group also in the future.
“Expected positive development in the future in terms of both market trends and our own ability to gain market share, in both existing and new product categories, lies behind our decision to raise or long-term ambition level. Our sustainability efforts are part of our natural DNA and communicating clear long-term 2030 goals also in this area, in connection with the new financial goals, is therefore just as natural.”
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