April-June 2025
- Net sales increased by 1% to SEK 135m (133), organic growth amounted to 12% during the quarter
- Operating profit amounted to SEK 41m (52)
- Operating margin decreased to 30.1% (38.9)
- Cash flow from operating activities amounted to SEK 18m (29)
- Earnings per share, diluted, amounted to SEK 1.20 (1.53)
January-June 2025
- Net sales increased by 16% to SEK 251m (216), organic growth amounted to 23%
- Operating profit amounted to SEK 65m (65)
- Operating margin decreased to 25.9% (30.3)
- Cash flow from operating activities increased by SEK 35m to SEK 55m (20)
- Earnings per share, diluted, amounted to SEK 1.91 (1.96)
CEO's comments
Good progress despite challenging conditions
I am pleased that we achieved organic growth of 12 percent in the quarter despite very challenging conditions, where the tariff situation in US creates significant uncertainty in the market.
In early April, the imposition of high tariffs on goods imported into the US was announced. The tariff package was extensive and larger than most people had expected, creating uncertainty in all our customer categories and cautious purchasing behavior among our customers, the helmet brands. As much of the rhetoric centered on China, where most helmets are currently produced, many factories had to reduce production significantly. As the brands gained more clarity they communicated price increases to mitigate the impact of tariffs. These were relatively well received by retail and consumers and thereby the helmet brands started producing helmets at their suppliers again. As a result, we saw an acceleration in the end of the quarter, but sales did not reach the growth we saw in the previous quarter.
The economic impact of the tariffs on Mips in the quarter was less than we initially thought when the tariff levels were introduced in early April. There are several reasons for this: Mips, as a brand, has a very strong position in the US market with broader coverage in terms of both brands and price points. We have also achieved higher penetration in other parts of the world and, additionally our customers were more prepared on how to act towards the consumers than when specific tariffs were introduced on, among other things, bicycle related products at the end of 2019. The impact on our sales was also smaller than what we saw in 2019, which was the first time larger increases of tariffs were imposed.
For Mips as a company, the tariffs have not resulted in an increase in costs, and we have therefore not needed to implement tariff-related price increases. We sell all our products based on Incoterms Ex Works, which means that the buyer is responsible for all transport costs, including tariffs.
We have during the last months seen a flurry of activity from many helmet brands to relocate large parts of their helmet production outside China in order to reduce dependency on individual countries. This does not have a negative long-term impact on Mips, but it does mean that our customers are currently very focused on ensuring that their relocation is as smooth as possible. This operational focus on goods supply means a certain shift in attention from more sales driven initiatives from their side. Therefore, we saw somewhat lower activity in number of projects during the quarter as many of our customers have focused their resources to relocate production. We believe that it will take a quarter or a few before they can focus on product development of new products again.
However, we continue to see a strong interest in Mips globally and see a positive trend among the brands that implement Mips in new helmet models in relatively new markets for us.
Good underlying profit performance
We saw a decrease in operating profit in the quarter, fully explained by legal costs and effects of exchange rate differences. Underlying, we saw a positive development of the gross margin, which amounted to 74.2 percent (72.9).
Net sales increased by 1 percent in the quarter, while organic sales growth, adjusted for currency effects, increased by 12 percent. Operating profit amounted to SEK 41m (52) during the second quarter. The operating cash flow this quarter amounted to SEK 18m (29).
Helmet category Sports - continued good progress despite challenging conditions
We achieved growth of 3 percent in the Sports category this quarter, and for the seventh quarter in a row we delivered growth in volumes in the bike sub-category, Mips' largest sub-category.
In conjunction with the world's largest bicycle trade fair, Eurobike, we launched Mips® Air Node Pro, which is an evolution of our lightest solution with improved product features. The product was very well received. We also launched our new trade fair and event concept, a mobile concept that can be used both at trade fairs and at consumer events in the future. This is fully in line with our strategy to increase our exposure to consumers in order to raise awareness of Mips around the world.
We also continued to see a stable development in the snow sub-category in the quarter, despite the very strong prior year comparator. Growth continues to be driven by our market share gains in the important US market and a satisfactory increase in penetration in Europe.
Helmet category Motorcycle - impact of tariffs
In the Motorcycle category sales decreased by 28 percent this quarter. The decrease in sales is entirely related to the postponement of orders due to the tariff situation in the US market being important for this category. This means that our view of the development in this category remains as positive as before.
We are pleased to have announced partnerships with two prominent motorsport athletes during the quarter. The first is Jorge Prado, double world champion and last year's MXGP winner. This year he is taking on Supercross on the American continent, which is exciting to be part of. The other athlete is Joan Mir, also a world champion but in MotoGP. He is an important part of our efforts to establish ourselves more strongly in the sub-category on-road. Both of these athletes are extremely strong additions to our motorsport program and will help us raise awareness of Mips around the world.
Helmet category Safety - postponement of sales due to tariffs
In the Safety category, we reached an increase in sales of 12 percent. The lower growth rate compared to previous quarters was due to the US tariffs. These created uncertainty for our customers especially regarding what the consequences will be for pricing to users, and the impact on agreed contracts. We see this as only temporary and our ambition in the Safety category remains.
We look forward to the rest of the year with confidence
Despite challenging conditions and a turbulent second quarter, we look forward to the rest of the year with confidence. We have strong momentum in the market, and we have a wider and stronger product range than ever. Our customers have navigated this environment well and most of them have made the necessary price increases to cope with cost increases due to the imposition of tariffs. Retail has responded well to the price increases, but it is difficult to assess how the short-term effects will impact consumers.
As we are convinced that helmet use will increase worldwide over time and that we will continue to gain market share, our ambition is to keep on growing and investing in our business, regardless of the external situation. We have a unique brand position in the helmet industry, broad expertise, and patented technology. As a result, I continue to look forward to an exciting but challenging 2025, with a stronger market position than ever for Mips.
Stockholm, July 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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-07-16 07:30 CEST.
