Rapala VMC Corporation issues a negative profit warning: Expects full year comparable operating profit to be significantly below the previous year
RAPALA VMC CORPORATION, Inside Information, 30.6.2023 at 18.00 EEST
Rapala VMC Corporation (“Rapala VMC”) updates its full year outlook for 2023. Full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) for 2023 is expected to be significantly below the previous year.
Profitability will be significantly below last year due to challenging market conditions caused by prolonged destocking at retail and wholesale levels. This is a result of supply chain bottlenecks and a shift in consumer spending, leading to decreased sales in major markets. Pre-sales for the upcoming winter season have also been below expectations. To mitigate the impact of lower turnover, the Group has already started implementing cost-savings. These include, among other measures, a restructuring of the Helsinki headquarters which was finalized in June.
Updated Outlook for 2023:
Rapala VMC group expects 2023 full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) to be significantly below the previous year.
Previous Outlook for 2023 (issued on February 10, 2023):
Group expects 2023 full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) to decrease from 2022.
A more detailed review of Rapala VMC’s possible risks and uncertainties can be found on the company’s website www.rapalavmc.com and in the Short-term Outlook and Risks section of the Financial Statement Release published on February 10, 2023.
RAPALA VMC CORPORATION
Lars Ollberg
President and Chief Executive Officer
For further information, please contact: Tuomo Leino, Investor Relations, tel. +358 9 7562 540
Rapala VMC Corporation in brief
Rapala VMC group is the world’s leading fishing tackle company and the global market leader in fishing lures, treble hooks and fishing related knives and tools. Group has a strong global position also in other fishing categories and Rapala VMC’s distribution network is largest in the fishing industry. The main manufacturing facilities are in Finland, France, Estonia, and the UK. Rapala VMC group’s brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Marttiini, Peltonen and 13 Fishing outside of the USA as well as Okuma in Europe. Group, with net sales of EUR 274 million in 2022, employs some 1 500 people in approximately 40 countries. Rapala VMC Corporation’s share is listed and traded on the Nasdaq Helsinki stock exchange since 1998.
