Rapala VMC issues positive profit warning as sales soar
Rapala VMC Corporation expects 2021 profits to ‘increase significantly’ this year.
The group’s previous outlook for 2021 showed a comparable operating profit in line or above the previous year. But in a positive profit warning issued this week, it says that its outlook has improved as a result of a stronger than anticipated financial performance for the first three months of the year.
The key drivers behind the upgrade are exceptionally good winter sales, strong continued demand for fishing tackle and faster than expected strategy implementation, said the company’s Stock Exchange release.
However, Rapala also acknowledges that there are still uncertainties for the rest of the year, with COVID-related threats to the operating environment from possible lockdowns, store closures, social distancing and impacts on consumer confidence.
Rapala has rarely been far from the headlines over the past year, with the acquisition of Okuma in Europe and Russia, key personnel changes, the launch of 13 Fishing into Europe and the acceleration of new product development. The group is also rebuilding its distribution network after ending its longstanding agreement with Shimano, and has closed its manufacturing facility in Indonesia.