CAPE TOWN, South Africa (BRAIN) — Protective equipment manufacturer Leatt Corp. reported its best third quarter in company history with revenue increasing 18% and net income by 22% year-over-year.
Revenue was reported at $11.4 million and net income at $1.6 million ($0.27 per diluted share) for the quarter ending Sept. 30. Year-to-date revenue was up 23% to $25.9 million compared to the same nine-month period in 2019. Year-to-date net income jumped 89% to $2.6 million compared to the same time period last year.
Third-quarter gross profit increased 9% to $4.9 million year-over-year. The quarter's total operating expenses were $2.9 million, an increase of 4% year-over-year.
CEO Sean Macdonald said growth is attributed to demand for mountain bike and moto protective equipment from consumers drawn to outdoor sports because of the COVID-19 pandemic.
"We are building a larger and more professional sales organization in both the moto and MTB areas, particularly in the United States, where we believe we have the ability to reach more dealers around the country," Macdonald said. "Leatt as a head-to-toe brand has become an important revenue driver for more dealers — a trend that we are investing in."
Specifically, Macdonald noted growth in the mountain bike footwear and motorcycle boot segments as well as expanding Leatt's body armor and goggle categories. He added overall helmet sales were down slightly.
"... We believe that our investment in re-engineering our helmet line will contribute to significant returns in the future in light of encouraging initial industry reviews, athlete feedback and consumer demand for our completely re-engineered line of moto helmets," 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.
