IN BRIEF
Three Thule Group shareholders, AMF, Handelsbanken Fonder and Alecta, which together hold around 28 % of the shares and votes, have requested an extraordinary general meeting to elect the board of directors. Chairman Hans Eckerström has resigned with immediate effect, and board member Per-Arne Blomquist has been proposed as his successor. Two days later, the Swedish bike rack maker reported quarterly net sales up 3 %, at 2,603 million kronor, and an operating margin of 20 % helped in part by customs duty refunds.
A change at the top of Thule, the Swedish brand cyclists know for its bike racks. The chairman is leaving as soon as part of the shareholder base has asked for it.
Thule: three shareholders call for an extraordinary general meeting
The press release published by Thule Group on 20 October states that the request comes from AMF, Handelsbanken Fonder and Alecta, which together represent around 28 % of the group’s shares and votes. It concerns the election of the board of directors: the release specifies that the proposal reduces the board from seven to six members and leaves out chairman Hans Eckerström, with the six other directors re-elected. In response, Hans Eckerström decided to step down as chairman of the board with immediate effect. The initiating shareholders consider the change “well-balanced and in the interest of the company and all shareholders”, the release states.
Board member Per-Arne Blomquist has been proposed as the new chairman. The board of directors will convene the extraordinary general meeting within two weeks at the latest, as required by the Swedish Companies Act. Hans Eckerström criticised the approach: “an abrupt change of Chairman, instead of an orderly succession, risks creating unnecessary uncertainty”, he says in the release. He also writes that the share price development has been “a disappointment”, which he very much shares “with the other shareholders”.
A slightly higher quarter, helped by customs duties
The third-quarter report, published on 22 October, shows net sales of 2,603 million Swedish kronor, compared with 2,528 million a year earlier, an increase of 3.0 %, including 1.2 % organic growth. Operating income reached 521 million kronor, compared with 453 million, and includes 52 million kronor of customs duty refunds. The operating margin rose from 17.9 % to 20.0 %, and the gross margin from 47.5 % to 49.3 %.
Bicycle Retailer reports that the Sports & Cargo Carriers category, which includes bike racks, grew by 2 %, driven by the European market, and accounted for 52 % of sales in the quarter. President and CEO Mattias Ankarberg remains cautious: “Market conditions remain challenging, and we do not expect any significant improvement in the short term”.
