Rapala VMC Corporation reported that net sales for the 2025 full year amounted to €227.5 million, up 3 percent from €220.9 million in the prior year. With comparable translation exchange rates, net sales were organically up by 6 percent year-over-year in 2025. Sales growth in the first half of the year outpaced the second half (H2) trend, which grew 2 percent year-over-year. With comparable exchange rates, H2 sales were up 6 percent year-over-year (y/y).

The company said the operating environment remained unpredictable and varied significantly across regions in 2025. The North American market reportedly proved resilient despite tariff-related disruptions, with consumer spending and retail activity holding up throughout the year despite related price increases. In contrast, in Europe and Asia, global trade disputes weighed on consumer sentiment and spending remained subdued.

North America
Sales in North America increased 10 percent y/y to €122.8 million, with reported translation exchange rates and increased by 14 percent with comparable translation exchange rates. The region posted year-over-year growth of 7 percent in the second half of the year.

“Two consecutive strong ice fishing seasons supported both early-year replenishment sales of winter products and load-in orders in the latter part of the year,” the company said in its earnings release. Sales growth was said to be further driven by the successful launch of the new 13 Fishing product range, the continued strong performance of CrushCity soft plastic lures together with VMC hooks and rigs, and solid momentum across all key brands.

Nordic
Sales in the Nordic market decreased 9 percent y/y to €23.4 million in 2025. With comparable translation exchange rates, sales were down 9 percent y/y for the year. The region posted a 15 percent year-over-year decline in the second half of the year.

Exceptionally low sales of winter sports equipment reportedly had a significant impact on the region’s performance. This was attributed primarily to poor snow conditions in Finland during the 2024/2025 season, which led to exceptionally weak replenishment sales in the first half of the year. Combined with subdued consumer confidence, the company said this led to lower shipments in the second half of the 2025/26 season.

“On a positive note, earlier organizational changes in the summer fishing business delivered encouraging results,” Rapala noted, indicating that product availability remained strong, and most key brands recorded increased sales. “Although the summer season started somewhat later than usual, replenishment sales remained resilient almost until the end of the reporting period,” the company said.

Rest of Europe
Sales in the Rest of Europe market decreased 4 percent y/y to €56.2 million in 2025. With comparable translation exchange rates, sales were down by 4 percent from the prior year. The region posted a 1 percent year-over-year decline in the second half of the year.

Sales at the beginning of the year were negatively impacted by retailer carryover inventory from the previous season. Consumer activity remained subdued, and retailers continued to exercise extreme caution with replenishment orders. Focus remained on core brands, with the Okuma brand continuing its growth trajectory as a key highlight.

Rest of the World
With reported translation exchange rates, sales in the Rest of the World market increased 1 percent y/y to €25.0 million in 2025. With comparable translation exchange rates, sales increased 6 percent compared to the prior year. The region posted year-over-year growth of 2 percent in the second half of the year.

Sales in the Asian markets reportedly declined, attributed to ongoing global trade disputes that continued to weigh on consumer sentiment and drive foreign exchange volatility.

“The competitive landscape also evolved amid tariff tensions, with Asian fishing equipment manufacturers increasing their investments in domestic markets and emerging as stronger local competitors,” Rapala noted.

In contrast, Latin American markets were said to have performed well, supported by economic recovery and currency stability in key countries. Growth was said to have been partly driven by the new Okuma distributorship in Chile.

External Net Sales by Area

Financial Results and Profitability
Comparable operating profit, which excludes mark-to-market valuations of operative currency derivatives and other items affecting comparability, increased €2.2 million y/y to €8.4 million in 2025. Reported operating profit decreased by €4.5 million from the prior year, and the items affecting comparability had a negative impact of €4.2 million on reported operating profit.

Comparable operating profit margin was 3.7 percent of net sales for the year, up 90 basis points from the 2024 level. The improved profitability was said to be primarily driven by increased sales in both the winter fishing and open-water markets, and these together outweighed the low sales of the weather-sensitive winter sports business.

“While tariffs had a negative impact on the cost base, carefully planned price adjustments and cooperation with key vendors helped to reduce the negative impact on sales margin,” the company noted.

Reported operating profit margin was 1.9 percent for the year, down 2 percentage points from 2024 levels. Reported operating profit included the impact of mark-to-market valuation of operative currency derivatives of €0.6 million (2024: negative €0.7 million).

Net loss of other items affecting comparability included in the reported operating profit was negative €4.8 million (2024: €3.1 million). The majority of the amount reportedly relates to a non-cash foreign currency translation loss arising from the closure of the Batam lure manufacturing operation and the Russian manufacturing operation.

Rapala said this translation losses were previously recognized directly in equity and, therefore, their recycling through the income statement does not impact the capital structure ratios. The items also reportedly include a gain on the disposal of real estate in Finland. The prior-year gain relates to the sale-and-leaseback transaction of the Canadian real estate.

Total financial (net) expenses were €8.6 million (2024: €8.1 million) for the year. Net interest and other financing expenses were 6.9 million (2024: €8.8 million), and (net) foreign exchange expenses were €1.7 million (2024: €0.7 million).

Net profit (loss) for the year decreased by €5.4 million to a loss of €4.9 million, or a loss of €0.23 per share, from €0.4 million in 2024. The main negative impact was said to be a non-cash foreign currency translation loss arising from discontinued manufacturing operations. The net loss for the second half amounted to a €7.1 million, wider than the €4.2 million operating loss in H2 2024.

Cash flow from operations was €5.5 million for the year, compared to €23.4 million in 2024. Cash flow from operations in the second half (H2) of 2025 was negative €0.7 million, compared to positive €5.2 million in H2 2024.

Guidance
Full-year 2026 comparable operating profit is expected to increase from the prior year.

Image courtesy of Rapala VMC Corporation