Rapala VMC Corporation

For the first half of 2026, Rapala VMC Group reported sales of EUR 134.8 million, up 11% in comparable currencies and 7% reported. Comparable operating profit was EUR 13.5 million, up 57% from EUR 8.6 million last year, and reported operating profit was EUR 15.8 million, including EUR 2.5 million from IEEPA tariff refunds in the U.S. Net profit was EUR 8.5 million, up EUR 6.2 million year over year, and EPS was EUR 0.19. Cash flow from operations was EUR 16.7 million, up EUR 10.5 million year over year, while inventory was EUR 80 million, down EUR 2.1 million. Looking ahead, management reaffirmed full-year comparable operating profit guidance of EUR 12 million to EUR 14 million. They said North America remained in replenishment mode, Europe was still affected by drought and heat waves, and the second half would include higher marketing investment plus continued focus on margin protection and cost control.

Cyrille Viellard framed the quarter as proof that the recovery plan is working, saying the group is slightly ahead of plan and that North American replenishment demand was especially strong for both new and existing items. He emphasized brand streamlining, stronger innovation, and a gradual increase in marketing spending in the second half to support top-tier brands such as Rapala, Sufix and Okuma. His tone was constructive but cautious, repeatedly citing tariff volatility, geopolitical uncertainty, and uneven regional demand.

Miikka Tarna said H1 sales reached EUR 134.8 million, with 11% comparable growth offset by a negative foreign exchange impact that left reported growth at 7%. He highlighted comparable operating profit of EUR 13.5 million, reported operating profit of EUR 15.8 million, net profit of EUR 8.5 million, EPS of EUR 0.19, and operating cash flow of EUR 16.7 million; cash flow excluding working capital impact was EUR 18.5 million. He also noted inventory of EUR 80 million, net interest-bearing debt of EUR 60 million, and a leverage covenant of 2.28, saying de-leveraging is progressing; he added that higher H1 tax expense was driven by withholding taxes tied to internal repatriation of profits.

Analysts focused on the updated guidance, asking what changed in H2 demand and cost assumptions. Management said the July U.S. Section 301 tariff changes were less unfavorable than expected, which reduced one key risk, but visibility remains limited because the open-water season is mostly behind them and replenishment timing is harder to forecast. They also discussed winter fishing inventories, higher marketing and product-development spending, margin protection versus raw-material cost pressure, the effect of the NRV allowance, and cash flow seasonality, with management saying Q3 should be slightly better than last year but Q4 is usually negative because of load-ins for the next year.