Exel reported strong revenue and income growth for fiscal 2004. While a majority of the top-line growth was generated by the companys industrial division, Exels sport division reported full-year sales grew 25.0% to 35.5 million ($44.2 mm) compared to 28.4 million ($32.2 mm) reported last year. The sport divisions operating profits jumped 176.7% for the year to 5.0 million ($6.2 mm) compared to 1.8 million ($2.0 mm) posted last year.
The Sport division is involved in several aspects including Exel Nordic walking and XC ski poles, producing sport-specific carbon fiber tubes for use in other manufacturing, and manufacturing plastic bases for skis and snowboards. In addition to its own products Exel is also the Finnish distributor of Tubbs Snowshoes.
Exel experienced success in expanding its brands reach outside of Europe and North America, growing sales from 674,000 ($763K) to 11.1 million ($13.8 mm). The North American market, which recently switched from a distributor to a wholly owned subsidiary, did not fare so well. In local currencies, North American sales slipped 19.3% to $2.1 million in 2004 compared to $2.6 million last year. While much of this can be attributed to the transition in distribution, the slow acceptance of Nordic walking in the North American market is also a likely culprit.
In spite of this slight down-turn in the N.A. market, currently, the fastest-growing niche market for Exel is Nordic walking, based on Exel's Nordic Fitness Sports concept, which has attracted several competitors. Exel claims to be “the world's leading manufacturer and marketer of Nordic walking poles.” In areas where Nordic walking is gaining steam, such as Germany, Nordic Fitness Sports has been named the “megatrend” for 2005 in leading fitness magazines.
Exels sales grew 11.6% in Finland to 13.9 million ($17.3 mm); Other Nordic countries grew 24.4% to 7.2 million ($9.0 mm); and the rest of Europe grew 38.7% to 49.9 million ($62.1 mm).
