Rapala VMC Corp., the fishing tackle company based in Helsinki, Finland, lowered its financial outlook for the year, now expecting 2023 operating profits to be “significantly below” 2022 due to marketplace inventory destocking efforts.
The Group’s previous outlook called for operating profit, excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability, to decrease from 2022.
Rapala VMC said, “Profitability will be significantly below last year due to challenging market conditions caused by prolonged destocking at retail and wholesale levels. This is a result of supply chain bottlenecks and a shift in consumer spending, leading to decreased sales in major markets. Pre-sales for the upcoming winter season have also been below expectations. To mitigate the impact of lower turnover, the Group has already started implementing cost-savings. These include, among other measures, a restructuring of the Helsinki headquarters, which was finalized in June.”
Rapala VMC, trading on the Nasdaq Helsinki stock exchange, manufactures fishing lures, treble hooks and fishing-related knives and tools. Rapala VMC group’s primary brand is Rapala but it also includes VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Marttiini, Peltonen, and 13 Fishing outside of the U.S. as well as Okuma in Europe.
Rapala VMC Corp. reported sales of €274 million ($299 mm) in 2022.