Rapala registered a 3 percent decline in net sales for the second quarter to €81.4 million as compared to the same quarter a year ago. For the first six months, they were stable at €156.7 million. The company said that the sales performance was in line with expectations, although it was negatively impacted by weather conditions and foreign exchange rates in many countries. At comparable currency exchange rates, sales increased slightly in the second quarter and by 1 percent for the first six months.
Net profit went up to €7.8 million for the quarter from €7.2 million last year. For the first half of the year, Rapala's net income registered a slight decline to €14.4 million, as compared to €14.7 million a year earlier. Excluding non-recurring items and the effect of currency exchange rates, the comparable operating profit margin was 16.1 percent for the quarter, up from 13.9 percent, and 13.5 percent for the six-month period, down from 14.1 percent.
Net sales of group products increased by 1 percent from last year to €49.4 million for the quarter, driven by strong sales of lures and hooks as well as accessories, although they were negatively impacted by foreign exchange rates. First-half sales of group products were up by 2 percent to €96.6 million, also supported by new ice-fishing products. Sales of third-party products were down by 8 percent to €32.1 million for the quarter and down by 4 percent to €60.2 million for the first half of the year, with a decline in third-party fishing sales, impacted by a late spring as well as foreign exchange rates.
Sales in North America increased by 2 percent for the quarter and by 4 percent for the first half of the year. In the Nordic countries, sales were down by 4 percent for the quarter and by 3 percent for the first half of the year, impacted by the delayed beginning of the summer fishing season. Sales increased in Finland, while in Norway the proportion of pre-sales decreased. In the rest of Europe, second-quarter sales fell by 4 percent and half-year sales were down by 3 percent. In central Europe, the sales performance was impacted by the late spring and floods. Sales continued to be strong in France and Russia but they decreased in the U.K., partly due to poor weathers. Spain, Hungary and some other eastern European countries continued to be affected by macro-economic challenges. Rapala says the restructuring of its distribution in Switzerland is proceeding.
In the rest of the world, sales decreased by 5 percent for the quarter and by 2 percent for the first half of the year. At comparable exchange rates, quarterly sales were up by 2 percent and six-month sales were up by 10 percent in the rest of the world. They were supported by a new distribution company in Chile and good sales in Latin America as well as in some Asian countries.
The outlook for the second half of the year is confident and the guidance remains unchanged, as the company considers that there are no major issues in sight significantly threatening sales in the ongoing season. Group sales are expected to increase from last year and comparable operating profit should be around €30 million, with a 10 percent margin of error.
