January-March 2025
- Net sales increased by 40% to SEK 116m (83), organic growth amounted to 42% during the quarter
- Operating profit increased by 78% to SEK 24m (14)
- Operating margin improved by 4.5 percentage points to 20.9% (16.5)
- Cash flow from operating activities increased by SEK 46m to SEK 36m (-10)
- Earnings per share, diluted, increased by 63% and amounted to SEK 0.71 (0.44)
Strong sales in all categories
The very good sales development of recent quarters continued, and we delivered organic growth of 42 percent. We saw a good development in all our categories and in most geographies we sell to.
In early April, there was an announcement of high tariffs on goods imported into the US. The tariff package was extensive and larger than most people had expected and, despite the communication of a temporary pause in the introduction of the tariffs for many countries, the tariff level for China has been further elevated. Given the speed and scale of the changes, it is very difficult to assess the total impact. Our assessment is, in the short-term, that this can create uncertainty for our customers with a possible delay of orders which can result in postponed sales. This has nothing to do with the long-term demand for Mips products nor Mips position in the market, which remains strong. As regards the direct impact of the tariffs for Mips specifically, nothing has changed from what we have previously communicated. We sell all our products based on Incoterms Ex Works, which means that the buyer takes responsibility for transport costs, fees, taxes, tariffs and so on.
When it comes to the consumer markets where products with Mips' technology are sold, the developments differ. In the important US market, we are seeing that the consumers are more uncertain about what to expect going forward. The outlook for the economic situation and the impact of tariffs is unclear. This reflects the fact that many consumers are more cautious. At the same time, we are seeing a good level of demand in the bicycle helmet market so far.
In Europe, there are good developments on the consumer side and continued growth in sales, especially in Germany. The demand in our industry has been subdued for some time and the recovery of the market is now characterized as more normal, despite continued challenging economic developments.
Globally, our strong customer offering and brand strength mean that we continue to see a positive trend in the number of implementations of Mips' technology in new helmet models. Our project revenues were lower this quarter, which is exclusively due to the mix and the phasing of projects and the total number of customer projects remains at a high level.
Good profit development during a challenging time
The strong growth in sales means we have seen a good improvement in the operating profit during the quarter, amounting to SEK 24m (14), an improvement of 78 percent. The quarter was negatively impacted by legal costs due to a lawsuit which one of Mips' US customers is a party to. Mips is not a party to the suit, but since the suit concerns areas where Mips has intellectual property rights, being an important cornerstone of our brand strength, we have chosen to engage to secure the best possible outcome. Mips' own intellectual property rights are not part of this suit. The operating profit was also affected by the impact of the revaluation of accounts receivable due to a weaker dollar in the quarter. The operating cash flow was strong this quarter and amounted to SEK 36m (-10).
Helmet category Sports - progress continues
We achieved growth of 40 percent in the Sports helmet category this quarter, and for the sixth quarter in a row we delivered growth in the bike sub-category, Mips' largest sub-category. Inventory levels of bike helmets have now largely normalized around the world.
We see continued growth in the snow sub-category too, despite a relatively weak winter season in several geographies. As opening inventory levels for the winter season have generally been relatively low, we do not expect this to affect sales for the next season to any great extent as a whole during the year.
Helmet category Motorcycle - strong growth in the quarter
In the Motorcycle helmet category we delivered sales growth of 32 percent this quarter. We are seeing the off-road sub-category, in particular, coming back strongly after a deep slump, but we are also still advancing our position in the on-road sub-category.
I am pleased to see that despite a generally challenging consumer market, we have seen good developments for Mips in this category. Our growth has mainly been driven by the fact that we are gaining greater market share, as well as the roll-out of new helmet models equipped with Mips' technology.
Helmet category Safety - an even better quarter
The Safety helmet category once again delivered a strong quarter, with 60 percent growth and the best quarter ever in the category. This is despite the fact that seasonally we are not in the most active period. We continue to launch new helmets with brands such as HexArmor and so far this year, we have launched one new partnership with the brand Pyramex.
Through these launches we have sharpened our offering even further, and it will be exciting to follow developments in 2025.
Focus on our business
The year has started strongly, and we have a broader and stronger offer than ever. However, it is currently unclear what the effects of the implementation of trade tariffs will be in the short-term. In these types of circumstances, we do best to focus on what we can influence; develop technical solutions that create safer helmets, win new customers and strengthen our brand.
Since we are convinced that helmet use will increase in the world over time, and that we will keep gaining market share, our ambition is to continue to grow and invest in our business, regardless of the world situation. We have a unique brand position in the helmet industry, broad expertise and patented technology. This means that I look forward to an exciting but challenging 2025, with a stronger market position than ever for Mips.
Stockholm, April 2025
Max Strandwitz
President and CEO
For more information, please contact:
Max Strandwitz, President and CEO
Max.Strandwitz@Mipsprotection.com
tel +46 709 61 17 54
Karin Rosenthal, CFO
Karin.Rosenthal@Mipsprotection.com
tel +46 768 34 63 66
About Mips
Mips specializes in helmet-based safety and is a world-leader in this area. Based on an ingredient brand business-model, Mips' safety system is sold to the global helmet industry. The technology is based on over 25 years of research and development together with the Royal Institute of Technology and the Karolinska Institute, both located in Stockholm, Sweden. Mips' headquarter with 86 employees engaged in research and development, sales, marketing and administration is in Stockholm, where its product and technology test facility also is located. The Mips share is listed on Nasdaq Stockholm. For more information: www.mipscorp.com
This information is information that Mips AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-24 07:30 CEST.
