In its interim report for the first half of 2021, Swedish protection label MIPS has discussed up coming price increases being an unavoidable consequence of rising raw material costs.
The announcement was included in the firm’s financial update, with headlined with a 139% organic growth in Q2.
“This means that during the first six months of the year we delivered an organic growth of 107 percent. Despite a challenging, supply chain, we have managed the situation in a very satisfactory way,” said CEO Max Strandwitz, adding “We continue to see a high demand for our solutions in bicycle helmets and our assumption is that this strong demand will continue for the rest of the year.”
The firm’s other headline results for the period January 1st to June end included:
- A net sales increase of 84% to SEK 225m (122), organic growth amounted to 107%
- Operating profit amounted to SEK 111m (36)
- Operating margin was 49.5% (29.4)
- Cash flow from operating activities amounted to SEK 125m (38)
- Earnings per share, diluted, amounted to SEK 3.30 (1.07)
“The increase in sales was mainly from the Sport category, driven by high demand for solutions for bicycle helmets, where our existing customers continue to broaden their range with MIPS solutions. The growth numbers were helped by weak prior year comparator due to the pandemic situation. In the Motorcycle category, demand was strong, and we saw a very good development in the quarter. We are still in an early phase in our Safety category and therefore sales can be uneven between quarters. We see great interest within Safety and we are convinced that both the number of brands and volume will increase during the year, as previously communicated,” added Strandwitz.
Having already made direct customers aware, the Q3 increases are reflective of a broad picture of rising costs for bike and accessory makers. Raw material costs on everything ranging metals to cardboard having soared in recent months, alongside external costs such as shipping.
To read more about the science behind the MIPS product check in with Strandwitz’ guest column for CI.N, found here.