Mips (MIPS) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 rose 61% year-over-year to SEK 123m, with organic growth of 69% and year-to-date organic growth at 29%.

• All helmet categories—Sports, Motor/Moto, and Safety—showed strong growth, with Safety delivering its best quarter ever.

• The consumer market remains challenging and erratic, especially in North America, but market share and penetration continue to increase globally.

• Continued global increase in market share and penetration of Mips safety systems, with confidence in long-term strategy and financial targets.

• Cash flow from operating activities increased to SEK 36m in Q3 and SEK 56m for the nine-month period.

Financial highlights

• Q3 net sales: SEK 123m (up 61% year-over-year); nine months: SEK 339m (up 27%).

• Q3 gross profit: SEK 91m (up 62%); gross margin 73.4% (vs. 73.1% last year); nine months: 72.3% (vs. 71.1%).

• Q3 operating profit/EBIT: SEK 48m (up 219%); EBIT margin 38.5% (19.5%); nine months: SEK 113m (up 112%).

• Q3 EBITDA: SEK 52m; EBITDA margin: 42.4%.

• Cash and cash equivalents at period end: SEK 296m; equity ratio: 87%.

Outlook and guidance

• Long-term positive outlook for all categories, especially sports and motor, with continued high interest in Mips technology.

• Expectation of further acceleration in bike segment growth in Q4, supported by new model rollouts.

• Market situation not fully normalized or stable, but sales now reflect true market demand.

• Financial targets: net sales above SEK 2 billion and EBIT margin above 50% by 2027.

• Ongoing uncertainty in consumer markets, particularly in North America, but positive trends in Europe.