The Finnish sports company's net profit improved to €1.3 million in the third quarter from €0.2 million in the same period a year ago. Excluding extraordinary items, the operating margin rose to 5.9 percent from 4.5 percent and net sales went up by 4 percent to €65.6 million, thanks in part to the stronger dollar.
Pre-sales of winter sports equipment have been relatively good, considering the poor weather conditions of the last winter season. Sales of group products decreased by 1 percent, but they were up by 7 percent excluding the disposal of the group's gift business. Sales were good especially in North America, Eastern Europe, France and the Nordic countries. Negative trends were experienced in Hungary, Spain and Switzerland.
Lower margins were recorded in fishing lines. The incremental margins generated by the new ice fishing business already had some positive impact on the quarterly results. Rapala has created a new Iceforce unit for marketing and product development purposes.
The company has set up a new distribution subsidiary in Chile. It has also acquired the 20 percent stake it did not yet own in its Indonesian distribution company.