Rapala VMC (RAP1V) H2 2025 earnings summary

Executive summary

• Net sales increased by 3% year-over-year to €227.5 million in 2025, with organic growth of 6% at comparable exchange rates, driven by strong product launches and improved operations.

• Comparable operating profit rose 35% to €8.4 million, reflecting improved margins, cost control, and higher sales.

• The business continued its transformation from distribution/wholesaler to brand-driven culture, focusing on flagship products and reducing third-party sales.

• Celebrated 90 years of Rapala, with strong brand engagement and viral growth on social media.

• Net profit for the year was -€4.9 million, mainly due to non-cash foreign currency translation losses and one-off items.

Financial highlights

• Net sales: €227.5 million (+3% year-over-year); H2 net sales: €102.0 million (+2%).

• Comparable operating profit: €8.4 million (+35%); reported operating profit: €4.2 million (-51%).

• Net profit: -€4.9 million (2024: €0.4 million); EPS: -€0.23 (2024: -€0.07).

• Cash flow from operations: €5.5 million (2024: €23.4 million), mainly due to higher inventory from tariffs and seasonal working capital needs.

• Gearing increased to 53.5%; equity-to-assets ratio decreased to 49.3%.

Outlook and guidance

• 2026 comparable operating profit expected to increase from 2025, excluding mark-to-market and other non-comparable items.

• North American demand remains robust; European markets expected to remain subdued due to economic and political developments.

• Operational efficiency and cost scrutiny to continue, especially in Europe.

• Guidance subject to trade-related disruptions, tariffs, and regulatory changes.

• Oil price volatility and global uncertainties may impact consumer spending.