Rapala VMC (RAP1V) H2 2025 earnings summary

Executive summary

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

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

• Net profit was -€4.9 million, mainly due to non-cash foreign currency translation losses and non-recurring items.

• Cash flow from operations dropped to €5.5 million from €23.4 million, impacted by higher inventory values, tariffs, and seasonal working capital needs.

• The business continued its transition from wholesaler to brand builder, focusing on flagship products, innovation, and reducing third-party sales.

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); gearing: 53.5% (2024: 39.8%).

• Equity-to-assets ratio: 49.3% (2024: 53.0%).

Outlook and guidance

• 2026 comparable operating profit expected to increase from 2025, with robust North American demand and continued operational efficiency in Europe.

• European markets expected to remain subdued due to economic and political developments; focus on cost base and break-even reduction.

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

• Main growth expected from North America, with profitability improvements targeted in Europe.