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The current oil crisis is one of the ‘unpredictable things’ that will affect business in 2026, Rapala VMC Corporation has warned its shareholders.
Following the announcement of its full year results and a 35% increase in operating profit on the previous year, Mikka Tarna, the group’s Chief Financial Officer, told investors: “The recent increases in oil prices might have an impact. It is one of the unpredictable things that will affect the business in 2026.
“Globally, in our markets, oil prices might affect foot traffic in stores and consumer discretionary spending. But as we don’t have direct to consumer sales, it’s not a significant part of our sales. We mainly sell to retailers so the impact to us will be somewhat delayed – if any impact comes.”
Despite a continuing trade war and high intensity conflicts in the Middle East and Ukraine, Rapala believes it has turned a financial corner and is operationally and strategically aligned to build a stronger business in 2026. It has forecast the financial performance for the coming year to increase from the previous 12 months.
Rapala delivered year-end sales up 3% to €227.7m (2024: €220.9m) – 6% higher than last year when taking into account comparable exchange rates.
The North American market proved ‘very resilient’ despite all the tariff disruption and provided the bulk of the group’s growth, with sales increasing by 10% compared to the previous year. This was driven by two consecutive strong ice fishing seasons, the successful launch of the new 13 Fishing product range, and the continued strong sales performance of the Crush City soft plastic lures, together with VMC hooks and rigs and solid momentum across all of its key brands.
Tarna added: “So far we have been very successful in mitigating the tariff impacts on our sales and profitability. However, we have had to adjust our pricing in the North American market and this impact on consumer behaviour is difficult to predict, leading to uncertainty on how consumer spending and the basket size will develop.”
In the Nordic region, sales decreased 9% following exceptionally low sales of winter sports equipment. However, on a positive note, organisational changes in the summer fishing business delivered encouraging results. Tarna added that product availability remained strong with most key brands reporting increased sales. “Although the summer season started somewhat later than usual, replenishment sales remained resilient almost until the end of the reporting period,” he said.
In the rest of Europe, Rapala reported a 4% drop in sales, negatively impacted by retailer carryover of inventory from the previous season. “We have also experienced slow consumer spending due to economic and political developments and expect this to continue. As a result, we will continue our operational efficiency initiatives and scrutinise our cost base to lower our breakeven point in the region further.”
Sales in Asian markets declined as ongoing global trade disputes continued to weigh on consumer sentiment and drive foreign exchange volatility. “The competitive landscape also evolved amid tariff tensions, with Asian manufacturers increasing their investment in domestic markets, emerging as stronger local competitors.
In contrast, Latin America markets performed well, supported by economic recovery and currency stability in key countries. Growth was partly driven by the new Okuma distributorship in Chile.
Worldwide sales:
North America: €122.8m (2024: €111.9m) up 10%
Nordic: €23.4m (€25.8m) down 9%
Rest of Europe: €56.2m (€58.4m) down 4%
Rest of the world: €25m (€24.8m) up 1%
Total: €227.5m (€220.9m) up 3%
