News

Tackle giant Rapala VMC has seen an uptick in profitability and steady sales for the last financial year, helped by a successful launch of the CrushCity product range.

The company revealed that net sales were €220.9 million, slightly higher than last year taking comparable exchange rates into account while operating profit was up from €8.6 million from €4 million the year before, with net profit also rising to €0.4 million, compared to a loss last year.

However, outgoing CEO Lars Ollberg was especially pleased with the launch of CrushCity, the integration of 13 Fishing and a survey which showed that staff satisfaction is also on the rise.

He said: “We strategically strengthened our business in a challenging year, focusing on brand value, customer relationships, and market positioning in North America and Europe.

“Despite initial commercial headwinds, we stabilised operations and created a robust foundation for future growth. Our targeted efforts successfully improved overall business performance. Our sales remained steady and our comparable operating profit increased to €6.2 million (from €5.6 million).

“Our profitability improved in both halves of the year while our inventory levels decreased, demonstrating successful inventory management and sales optimisation. Our delivery reliability is among the highest in the industry and customer satisfaction has significantly improved.

“Employee satisfaction has risen, with feedback from staff surveys being predominantly very positive. Our employees are our most important resource and we will pay even more attention to fostering a good team spirit.

“We also streamlined our management team. Our strategy reflected our commitment to advancing sustainability across our product offering, customer engagement, global operations, and stakeholder relationships. We are aiming to integrate sustainability into all aspects of our business.

“North America remains our largest market area, where our position remained strong. The launch of the new Rapala CrushCity product range has exceeded our expectations and has been one of the most successful market entries in recent years.

“This new product line has opened up new consumer groups for us, particularly among younger enthusiasts, who represent a growing and significant customer segment. CrushCity has further strengthened our relationships with the largest retailers in North America.

“Another significant achievement has been the successful integration of 13 Fishing with Rapala USA. As a result of this initiative, 13 Fishing is now profitable and the product range has been revamped in both summer and winter fishing products. Our customers have widely adopted the new collection into their assortments.”

Lars added: “Although there have been challenges in the European markets due to consumer caution, we have succeeded in improving and streamlining our operations. Our profitability in the region has improved during 2024. The enhancement of operational efficiency is evident in shorter delivery times and increased customer satisfaction. Our European sales focus specifically on the sales and marketing of Rapala products as well as Okuma rods and reels.

“In the Asian markets, we have also seen growth in sales and profitability. We have started selling Okuma products in Thailand and Korea. The winter sports business has been challenging, but we have implemented several measures to support sales.

“Consolidation of lure and knife production to Estonia has yielded results: inventories and lead times have significantly decreased, and we have achieved substantial savings in operational costs.  The implementation of the Anaplan logistics tool has improved inventory quality and fill rates. 

“The development of new products is progressing on schedule, and our product development organization’s collaboration across North America, Europe, and the APAC regions adheres to the ‘Think Global – Act Local’ strategy.

“An example of this is the global success of the Rapala CrushCity product family in the soft lure market, where it has quickly risen to become one of the best-selling products in its category on all continents. Nearly all of our lures are designed in our modern product development centre in Vääksy, Finland.”

rapalavmc.com

Rapala VMC CEO Lars Ollberg.