Mips (MIPS) Q1 2025 earnings summary

Executive summary

• Achieved 42% organic growth in Q1 2025, with strong performance across all business categories and geographies, especially Europe and the U.S., despite cautious consumer spending in the latter.

• Inventory levels normalized and market share increased, with management maintaining confidence in long-term strategy and financial targets despite near-term sales uncertainty from new tariffs.

• Net sales rose 40% year-over-year to SEK 116m, with gross profit up 46% to SEK 83m and gross margin improving to 72.1% from 69.4%.

• EBIT increased 78% to SEK 24m, with EBIT margin up to 20.9% from 16.5% last year.

• Operating cash flow improved to SEK 36m from SEK -10m, and cash and cash equivalents stood at SEK 408m with no loans and an equity ratio of 87%.

Outlook and guidance

• Near-term sales development is expected to be volatile due to uncertainty from US tariffs, but long-term financial targets and positive outlook remain unchanged.

• Short-term demand swings anticipated, especially in the U.S., but not expected to materially affect full-year results; sales may be delayed rather than lost.

• Continued focus on innovation, customer acquisition, and brand strength to drive growth despite macroeconomic and geopolitical challenges.

Segment performance

• Sports: Net sales up 40% to SEK 100m, with strong performance in both bike and snow, and healthy inventory levels; European market improving, U.S. market more uncertain due to tariffs.

• Moto: Net sales up 32% to SEK 10m, with normalized market conditions and successful rollout of new fabric solution Integra TX.

• Safety: Net sales up 60% to SEK 6m, marking the largest quarter to date, driven by new helmet models and strong demand.

• North America sales grew 35%, Europe 51%, and Sweden 172%.