Financial Objectives

Rapala VMC's strategic objective is profitable growth.

The objective of the Group's capital management is to ensure that it maintains healthy capital ratios in order to support its business and to maximize shareholder value. The Group's objective for capital management is to keep:

  • Gearing ratio below 150% and
  • Net interest-bearing debt to EBITDA (rolling 12 months) below 3.8.

Objectives are in line with the financial covenants associated with the Group's loan arrangement.

Short-Term Outlook

Financial Statement Release for 2021, published on February 10, 2022

General market demand for fishing products has been on a high level and is expected to gradually normalize. However, the Group expects the overall demand for fishing tackle to stay on a higher level compared to pre-pandemic levels.

The Group’s supply chain, including own factories and subcontractors, is currently working robustly, but global supply chain disruptions are affecting delivery times and availability of products. The COVID-19 pandemic continues to have an impact on the business both in increasing demand for fishing products as well as increasing health and safety measures in all operations of the Group. In addition, weather changes and disruptions or cost increases in freight costs may affect the results of the Group. Furthermore, changes in EUR/USD exchange rate have an impact on the Group due to large purchase and sales volumes in USD. The Group expects 2022 full year comparable operating profit (excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability) to be in line with the previous year.