STOCKHOLM (BRAIN) — Net sales for MIPS continue to increase in 2019, with the helmet technology company reporting 38% growth during the first nine months.
Through September, MIPS had net sales of 180.4 million Swedish krona ($18.6 million). Organic growth was 28%. For the third quarter ending in September, net sales rose 3% to 51.2 million krona ($5.3 million), but organic growth decreased 6%.
While the trade war slowed sales during the quarter, MIPS had more customers than ever, said CEO Max Strandwitz.
"The declining sales growth in the quarter was mainly caused by a noticeable slow start of the quarter," Strandwitz said. "Several of our larger U.S. customers cautiously took a passive stance in light of the uncertainties associated with the new trade tariffs between the U.S. and China, which were implemented during the quarter."
Operating profit for the quarter was down 2% to 20.5 million krona ($2.1 million). For the year, operating profit is up 56% to 69 million krona ($7.1 million).
"Like other suppliers and brands operating in the bike and snow sport industries in the U.S., we saw a recovery of the order backlog toward the end of the quarter, and we believe that the declining sales growth was solely temporary," Strandwitz said. "Today, MIPS' relationships with these U.S. customers are stronger than ever before. In addition, we have also initiated partnerships with a number of, to us, new helmet brands, and we remain confident in our positioning in the overall market."
In September at Eurobike, MIPS announced German helmet brands UVEX, Alpina and KED debuted new MIPS-equipped models for the first time. Also, MIPS will team with POC and jointly release a kids' helmet in the middle of 2020.
