Rapala aligned to build stronger business in 2026 despite disrupted global trade

Despite a continuing trade war and high intensity conflicts in Europe and the Middle East, the Rapala VMC Corporation believes it is operationally and strategically aligned to build a stronger business in 2026.

Announcing a 35% comparable increase in operating profit during the last financial year of €8.4m (€6.2m), its President and CEO, Cyrille Veillard told investors this week: “Our efforts to improve our fundamentals gives us confidence. 2026 is an important milestone as we celebrate 90 years of our flagship Rapala brand.

“The group confirmed its long-term direction and progress towards recovery and improved financial conditions in the midst of highly disrupted international trade.”

Rapala delivered year-end sales up 3% of €227.7m (€220.9m) – 6% higher than last year when taking into account comparable exchange rates.

“A big thanks must go to all our global team members for their dedication and commitment that has led to improve our fundamentals and embark enthusiastically in our brand-driven strategy for long-term sustainable success.”

Cash flow from operations stands at €5.5m (€23.4m), impacted in the second half by inventory value increases from tariffs as well as seasonal overall working capital needs from the stronger North Americal winter fishing.

Veillard added that a one-time adjustment following the final liquidations of the lure factories in Indonesia and Russia significantly impacted 2025 operating profits, while the group benefited from the decision to sell and lease back the Canadian warehouse facilities.

“The Rapala VMC strategy is built on long-term brand building through ownership, innovation and excellence in marketing, best in class operations and customer service as well as solid supplier partnerships,” said Veillard. “Rapala VMC will continue to streamline its operations, reduce its break-even point and invest in innovation. Brand-driven strategy implementation is going according to plan.

“Management teams of core brands are set up with passionate and expert team members focused on their individual market segments. Strategies have been defined and action plans are in place.”

For the period July to December, Rapala reported net sales of €102m (€100.4m) a rise of 2% compared to the previous comparable period.