Brain protection firm MIPS has revealed net sales increased by 39% to SEK 267.9 million (£21.2 million) in 2019, with organic growth at 29%.
Operating profit for the year increased to SEK 108 million (£8.5 million).
The fourth quarter of 2019 saw net sales up 41% to SEK 87.5 million (£6.9 million) with 33% organic growth, and operating profit rose to SEK 39.7 million (£3.1 million).
President and CEO Max Strandwitz said of the company’s final year report: “Our largest customers continued to be the main contributor to the increased sales during the year. We did also see a significant inflow of new customers and a good growth and profitability within all categories we are active within.”
Strandwitz went on to reveal the MIPS Brain Protection System (BPS) had been implemented in more helmets than ever before during 2019. As of 31st December 2019, the firm launched MIPS’ technology in 583 helmet models and today has over 100 customers located around the world.
“I am particularly pleased with now having several strategically important German customers onboard and that we doubled our sales to our European customers during the year,” Strandwitz continued.
The report stated that negative impacts on the sale of US helmet brands resulting from the ongoing trade tariffs between China and the US were temporary, and the strong momentum seen in the firm’s fourth quarter results and positive signals from customers suggest production is ‘now back at normal levels again’.
Strandwitz also made reference to the ongoing coronavirus epidemic, saying it has ’caused a nervousness in the entire industry’ due to a large share of the world’s helmets manufactured by Chinese suppliers. MIPS’ wholly owned Chinese subsidiary, suppliers and majority of its customers’ manufacturers are based in the Guangdong area in south-east China, around 1,000 km from the epicentre of the virus in Wuhan.
“It is of course difficult to predict the future outcome of the virus outbreak,” said Strandwitz. “However, we know that it will take some time before the Chinese manufacturers reach full production capacity due to the prolonged Chinese New Year and the gradual ramp up in production, which could lead to certain accrual effects for us.”
The report also referred to the coming onboard of Fredrik Kjellberg as Chief Marketing Officier and Mats Juhl as Chief Financial Officer, during the fourth quarter of last year.
During the first quarter of 2020, MIPS is relocating to a new office premises in Täby outside of Stockholm in order to expand the firm’s testing and product development capacity.
Strandwitz confirmed MIPS is in a good position to deliver in accordance with its 2025 targets.