STOCKHOLM (BRAIN) — MIPS’ fourth-quarter net sales increased 60% year-over-year with demand for bicycle helmets continuing in lockstep with the demand for bikes during the COVID-19 pandemic.
The helmet technology company ended 2020 with a 36% increase in net sales, despite retail outlets shutting down when the pandemic hit the U.S. in the spring.
Fourth-quarter net sales were SEK 140 million ($16.9 million), compared with SEK 87 million ($10.5 million) during the same time last year. Net income for the quarter was up 96%, from SEK 30 million ($3.6 million) to SEK 59 million ($7.1 million). Fourth-quarter earnings per share was SEK 2.24 ($0.27) compared to SEK 1.19 ($0.14), rising 88% year-over-year.
“Normally, our sales in the fourth quarter are mainly solutions for bicycle helmets,” said MIPS president and CEO Max Strandwitz. “This was even more apparent this year, as the strong development in the Sport category was driven by high demand for bicycle helmets. … The inventory levels in retail are low. This means that the current production is aimed at restoring stock levels and building up the stock for the coming season. As demand has exceeded our customers' manufacturing capacity for helmets, we expect to see continued high manufacturing volume in coming quarters. Despite a challenging environment, we have continued to broaden our customer base with 11% during the year and have now 107 customers in the Sport category in total."
Yearly net sales were SEK 365 million ($44 million), and operating profit was SEK 129 million ($15.5 million), rising 52%. Also in 2020, MIPS technology was present in 729 total helmet models, compared to 583 the year before.
MIPS' corporate headquarters is in Stockholm. Its stock is traded on the Stockholm Stock Exchange under the MIPS symbol. Stock quote at Marketwatch.com.
