Rapala VMC Corporation's Half Year Report H1/2025: Sales and Profitability Improved
RAPALA VMC CORPORATION, Half year financial report, July 23, 2025 at 3:00 p.m. EEST
January-June (H1) in brief
Net sales were 125.5 MEUR, up 4% from previous year (120.5). With comparable exchange rates sales were 5% up from previous year.
Operating profit was 9.1 MEUR (11.2).
Comparable operating profit* was 8.6 MEUR (6.2).
Earnings per share (non-diluted) was 0.02 EUR (0.07).
Cash flow from operations was 6.2 MEUR (18.2).
Inventories were 82.2 MEUR (84.7).
Short-term outlook: The Group expects 2025 full year comparable operating profit* to increase from 2024.
* Excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability. Other items affecting comparability include material restructuring costs, impairments, gains and losses on business combinations and disposals, insurance compensations and other non-operational items.
President and CEO Cyrille Viellard: "With continued focus on cash generation, our dedicated teams behind our strong brands, driven by product innovation, solid customer service and consistent marketing, achieved an overall sales and profit growth in a volatile international trade environment.
Cashflow remains the number one priority. Excluding working capital impact, cash flow from operations improved from the previous year and was 11.0 MEUR (5.7).
US reciprocal tariffs have disrupted supply chains with stop and go, inventory build ups, as well as occupy a dedicated internal task force to develop solutions to minimize impacts. They remain a matter of the greatest attention and although mitigated do impact gross margins as only partially compensated by customers.
Implementation of strategy to strengthen dedicated brand organizations is going forward. All key brands have dedicated management teams with performance KPIs and accountability for long term strategy definition. Brand focus allows better team accountability, more accurate market segmentation, stronger consumer orientation and in turn long term value creation.
For the second half, we remain cautiously optimistic with favorable winter fishing preorders in North America but uncertainties in tariff impacts on consumer spending as well as gross margins but confirm our ability to improve our comparable profits versus 2024 in the given market conditions."
Key figures
H1
H1
Change
FY
MEUR
2025
2024
%
2024
Net sales
125.5
120.5
4%
220.9
Operating profit
9.1
11.2
-19%
8.6
% of net sales
7.3 %
9.3%
3.9%
Comparable operating profit *
8.6
6.2
39%
6.2
% of net sales
6.9%
5.1%
2.8%
Cash flow from operations
6.2
18.2
-66%
23.4
Gearing %
39.2 %
36.9%
39.8%
EPS, EUR
0.02
0.07
-71%
-0.07
* Excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability. Other items affecting comparability include material restructuring costs, impairments, gains and losses on business combinations and disposals, insurance compensations and other non-operational items.
Rapala Group presents alternative performance measures to reflect the underlying business performance and to enhance comparability between financial periods. Alternative performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS. Definitions and reconciliation of key figures are presented in the financial section of the release.
Market EnvironmentDuring the first half of the year, operating environment varied significantly across regions. The North American market remained resilient, supported by stable consumer demand and steady retail activity. In contrast, the European and Asian markets were impacted by increased uncertainty and limited economic visibility, primarily driven by the ongoing global trade disputes. The effects of this market turbulence became more pronounced during the second quarter.
Business Review January–June 2025The Group's net sales for the year were 4% above the comparison period with reported translation exchange rates. With comparable translation exchange rates, net sales were organically up by 5% from the comparison period.
North AmericaSales in North America increased by 12% from the comparison period. With comparable translation exchange rates sales were up by 14%.
Favorable fishing conditions in Autumn 2024, combined with an exceptionally strong winter fishing season in 2024/2025, enabled retailers to reduce their inventories by year-end. This supported robust replenishment sales of winter products in the early part of the year and facilitated a healthy level of spring load-in orders. Sales growth was further driven by the successful launch of the new 13 Fishing branded product range, the continued strong performance of CrushCity soft plastic lures, and the solid momentum of all key brands.
NordicSales in the Nordic market decreased by 4% from the comparison period with reported and comparable translation exchange rates.
The year began with poor snow conditions. This led to exceptionally low replenishment sales of winter sports equipment which had a significant impact on the sales of the region. On a positive note, past organizational changes in the fishing business are yielding positive results, enabling strong operational performance. Product availability remained good and increased sales were achieved in majority of the key brands. However, the summer season started somewhat later than usual, which impacted replenishment sales towards the end of the reporting period.
Rest of EuropeSales in the Rest of Europe market decreased by 6% from the comparison period with reported and comparable translation exchange rates.
Retailer carryover stock from the previous season impacted the sales in the region. The year began on a positive note, but momentum slowed significantly midway through the reporting period. Consumer activity remained subdued, and retailers continued to exercise extreme caution with replenishment orders. Focus remained on core brands and as a highlight, Okuma brand continued on a growth path.
Rest of the WorldWith reported translation exchange rates, sales in the Rest of the World market were at prior year level. With comparable translation exchange rates, sales increased by 5% compared to the previous year.
Sales in the Asian markets declined, as ongoing global trade disputes continued to weigh on consumer sentiment and cause foreign exchange volatility. The competition landscape also evolved, with Asian fishing equipment manufacturers increasing their investments in domestic markets, thereby emerging as stronger local competitors. In contrast, Latin American markets performed well, supported by economic recovery and currency stability in key countries. These strengthened consumer confidence and supported the sales of imported products.
External net sales by area
H1
H1
Change
Comparable
FY ...
