STOCKHOLM (BRAIN) — Led by demand for bicycle helmets, MIPS reported net sales increased 94% year-over-year in the third quarter.
Net sales increased to SEK 102 million ($11.8 million) from SEK 53 million for the quarter ending in September.
Organic growth increased 108%. Net income was SEK 42 million, an increase of 164% year-over-year. Earnings per share was SEK 1.61, a 156% increase.
The 2020 third quarter reversed a 20% net sales decrease in Q2, with those losses attributed to the COVID-19 pandemic.
"We continue to grow with existing customers expanding their range of helmets with MIPS solutions," said Max Strandwitz, MIPS president and CEO. "During the third quarter, the positive market situation in the bicycle industry contributed to the growth. We have seen a very good development from helmet brands in both the U.S. and Europe. Demand from the U.S. has primarily been driven by sales of bicycle helmets, specifically for recreational use. The market situation in Europe has been favorable mainly from strong demand for bicycle helmets used for commuting."
Strandwitz said bicycle helmet demand has exceeded supply, leading to low inventory levels. "We expect a strong demand in the coming quarters," he said.
MIPS' corporate headquarters is in Stockholm. Its stock is traded on the Stockholm Stock Exchange under the MIPS symbol. Stock quote at Marketwatch.com.
