Q3 2024 Mips AB Earnings Call Transcript
Key Points
- Mips AB (FRA:7M1) reported a strong quarter with 61% growth in net sales, and 69% organic growth when adjusted for foreign exchange impacts.
- The company experienced good development across all three categories: sports, motor, and safety, with notable growth in each.
- Gross profit increased by 62%, with a gross margin of 73.4%, slightly up from 73.1% last year.
- EBIT surged by 219% to 48 million, demonstrating the scalability of Mips AB's business model.
- The company maintains a strong financial position with no loans and a high equity ratio of 87%.
- The consumer market remains challenging, particularly in North America, with erratic buying behavior affecting sales.
- Despite growth, market conditions are still challenging due to weak consumer sentiment and a high emphasis on working capital in retail.
- The safety segment's ramp-up was slower than anticipated, with a six-month delay impacting expected sales figures.
- The North American market remains uncertain due to economic factors and upcoming elections, affecting consumer confidence.
- Retailers are holding lower inventory levels due to high capital costs, which could impact future sales if consumer demand increases.
Good morning. My name is Max Strandwitz. I am the CEO of NPS. And with me today, we also have our CFO Karin Rosenthal and we will take you through the presentation of the Q3 results presentation.
So if we start with the key highlights of the quarter, it was another strong quarter with 61% growth in net sales. If we adjust for foreign impact, we were actually delivering an organic growth of 69% which is a very strong number. And here today, we have delivered 29% organic growth. We saw good development in all our three different categories. And just to remind you, we have a sports category, a motor category and a safety category. The consumer market remains challenging and the buying behavior is still very erratic. This is especially visible in the North American market in Europe. We see that the consumer are coming back quickly quicker. And we also see that the consumer sentiment is improving the interest in implementing mid safety system in new helmets remains high and market share and penetration of maps continue to increase throughout the world. And we are
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