Steady sales deliver improved profitability for Rapala in challenging 2024

Rapala VMC Corporation says that the group strategically strengthened its business in a challenging 2024, delivering improved profitability in both halves of the year.

Sales at the iconic Finland-based brand remained ‘steady’ at €220.9m (€221.6m) for the year, with an increase in comparable profit of €6.2m (€5.6m).

Outgoing President and CEO Lars Ollberg, who retires this month, told investors: “Despite initial commercial headwinds, we stabilised operations and created a robust foundation for future growth. Our targeted efforts successfully improved overall business performance.”

Rapala’s new bait phenomenon, CrushCity, continued to make the headlines in its US stronghold – exceeding market expectations and becoming one of the group’s most successful market entries in recent years.

“This new product has opened up new consumer groups for us, particularly among younger enthusiasts who represent a growing and significant customer segment,” commented Ollberg (left, main picture).

“The newly launched soft plastic lures contributed significantly to the increase in sales and also boosted VMC jigging hook sales.”

He also reported another ‘significant’ achievement in the US – the successful integration of its now profitable 13 Fishing brand.

Despite challenges in the European markets due to consumer caution, sales rose 3% with comparable translation exchange rates. “We succeeded in streamlining our operations and the improvement in operational efficiency is evident in shorter delivery times and increased customer satisfaction.

“Our European sales focused specifically on the sales and marketing of Rapala products as well as Okuma rods and reels.”

In its Asian markets, Rapala reported growth in sales and profitability and reported it has also started to sell Okuma products in Thailand and Korea.

The recent imposition of tariffs following the change in Administration in the US is a situation that is being closely monitored by Rapala, according to Ollberg “The ongoing situation continues to create challenges, but management is actively monitoring developments and taking necessary actions to mitigate potential impacts,” he told investors.

He added that the European markets are indicating stable consumer spending despite recent economic and political developments. “Our improved operational efficiency is expected to yield improved results in open water fishing categories.

“Favourable ice fishing conditions in North America are expected to result in improved order books for the forthcoming season, while in the Nordics, ice and snow conditions have been sub-optimal and the market is expected to remain tough.”

For this year, Rapala says its guidance reflects current market conditions, but remains subject to potential trade-related disruptions, including tariffs and regulatory changes which may impact demand and cost structures. Consequently, the group expects 2025 full year comparable operating profit to increase from 2024.