Rapala VMC (RAP1V) H1 2025 earnings summary

Executive summary

• Net sales increased by 4% year-over-year to €125.5M in H1 2025, driven by strong North American performance, successful product launches, and 5% organic growth at constant currency.

• Comparable operating profit rose 39% to €8.6M, while reported operating profit was €9.1M, reflecting improved efficiency and a structurally lower expense base.

• Profitability improved, but gains were partially offset by tariffs and regional market uncertainties, especially in Europe and Asia.

• Net profit declined to €2.2M, with EPS at €0.02, down from €0.07 last year.

• Strategy execution focused on brand-driven growth, operational efficiency, and cash generation amid volatile trade conditions.

Financial highlights

• Net sales: €125.5M in H1 2025 vs. €120.5M in H1 2024 (+4%).

• Comparable operating profit: €8.6M (+39%); reported operating profit: €9.1M, impacted by one-off items.

• Net profit: €2.2M vs. €4.7M; EPS: €0.02.

• Cash flow from operations: €6.2M, down from €18.2M, mainly due to negative working capital changes.

• Inventory at period end: €82.2M, with improved composition for winter season demand.

Outlook and guidance

• Full-year 2025 comparable operating profit is expected to increase from 2024, despite ongoing tariff and market uncertainties.

• North American demand remains robust, with favorable winter fishing preorders; European sales may decline due to slower consumer spending.

• Guidance is subject to risks from tariffs, regulatory changes, and global trade disruptions.

• Pre-sales for 2025/2026 winter fishing season progressing as expected in North America.