CAPE TOWN, South Africa (BRAIN) — Protective gear manufacturer Leatt Corp. recorded a 16% increase in revenue for 2019 and a fourth-quarter rise of 32% year-over-year in financial results released through Dec. 31, 2019.
The makers of mountain bike and motorcycle protective equipment, Leatt's yearly revenues were a record $28.3 million, a $3.9 million increase from 2018. Fourth-quarter revenue was $7.3 million. Net income increased 15% to $1.4 million, or $0.25 per diluted share.
"We also see strong growth in revenues from our stable of bicycle products that are sold through a growing network of distributors and dealers in the U.S. and abroad," said Leatt CEO Sean Macdonald.
The introduction of a mountain bike shoe line in March bodes well for this year, Macdonald said, but the COVID-19 pandemic has tempered expectations.
"While the success we achieved throughout 2019 has energized our entire team, we have seen conservative distributor buying patterns as a result of various global markets, including California, going into temporary lock down with the escalation of the COVID-19 global pandemic that may affect our growth trajectory going forward," Macdonald said. "Our management team is committed to working with all stakeholders to ensure that Leatt and its partners remain safe and return to normal trading patterns on a sustainable basis going forward."
In the U.S., revenue grew by 13% over 2018 as new dealers were added. "We also see strong growth in revenues from our stable of bicycle products that are sold through a growing network of distributors and dealers in the U.S. and abroad," Macdonald said.
Leatt's corporate headquarters are in Cape Town. Its stock is traded on the OTCQB exchange under the LEAT symbol. Leatt stock quote at Marketwatch.com.
