Sales and profits rise at Rapala VMC despite global trade volatility

Rapala VMC Corporation has reported robust sales and profit growth in the first half of its financial year despite operating in a volatile international trade environment.

The Finnish-based tackle giant reported net sales of €125.5m – an increase of 4% compared to the €120.5m of the previous year. With updated exchange rates, sales were up 5%. Comparable operating profit was €8.6m (€6.2m).

Delivering his first earnings report since taking over from Lars Ollberg, who retired in January, new President and CEO Cyrille Viellard, told investors that the results reflected the resilience and dedication of its teams and the enduring strength of its brands.

He said that the during the first half of the year, the operating environment varied significantly across regions. “The North American market remained resilient, supported by stable consumer demand and steady retail activity,” said Viellard. “In contrast, the European and Asian markets were impacted by increased uncertainty and limited economic visibility, primarily driven by ongoing global trade disputes.

“The effects of this market turbulence became more pronounced during the second quarter.”

Viellard added that Rapala expects full year comparable operating profit to increase from 2024. “For the second half of the year we remain cautiously optimistic with favourable winter fishing pre-orders in North America. However, uncertainties in tariff impacts on consumer spending as well as gross margins persist, but we confirm our ability to improve our comparable profits versus 2024 in the given market conditions.”

He added that cash generation remains the company’s top priority. Excluding the impact of working capital, cash flow from operations improved significantly from the previous year, reaching €11m – up from €5.7m. “This improvement underscores the effectiveness of internal issues aimed at strengthening financial stability,” he said.

The company continues to face challenges due to US reciprocal tariffs which have disrupted supply chains, caused inventory build-ups and necessitated a dedicated internal task force to address the resulting complexities.

“While efforts to mitigate the impacts of tariffs have been partially successful, gross margins remain under pressure as the increased costs are only partially offset by customers.”

Progress in the company’s strategy to reinforce dedicated brand organisations is well under way, reported Viellard. All key brands now benefit from specialised management teams equipped with performance KPIs and clear accountability for long-term strategic direction.

“This brand-focused approach enhances team responsibility, refines market segmentation and bolsters consumer orientation, ultimately fostering long-term value cooperation.”