Rapala VMC (RAP1V) H2 2024 earnings summary

Executive summary

• Net sales for 2024 were €220.9M, nearly flat year-over-year, with FX-adjusted growth of 1%.

• Comparable operating profit increased to €6.2M from €5.6M; reported operating profit at €8.6M, boosted by a Canadian real estate sale.

• Net profit for the period at €0.7M, a significant improvement from a €7.3M loss in 2023.

• Cash flow from operations strong at €23.4M, up from €20.6M, reflecting robust working capital management.

• Leadership transition with Cyrille Viellard becoming CEO in 2025, following a period of team unity and stabilization.

Financial highlights

• Operating profit margin rose to 3.9% from 1.8% year-over-year.

• EBITDA increased to €21.1M from €15.6M; EBITDA margin at 9.6% (2023: 7.0%).

• Net interest-bearing debt reduced to €61.8M, down by €19M year-over-year.

• Earnings per share at -€0.07, improved from -€0.20 last year.

• Cash and cash equivalents at year-end were €21.7M, with €41M in unused credit facilities.

Outlook and guidance

• 2025 comparable operating profit expected to increase, driven by lower fixed costs and operational efficiencies.

• Guidance remains cautious due to ongoing tariff, trade, and regulatory uncertainties.

• US consumer demand robust; European markets stable but cautious.

• Favorable ice fishing conditions in North America expected to boost pre-orders; Nordic market remains challenging.

• No dividend proposed for 2024.