STOCKHOLM (BRAIN) — Helmet technology company MIPS increased first-quarter net sales by 65% year-over-year with its Sports division growth being led by snow products and less by the bike products.
Net sales for the quarter were SEK 137 million ($14 million). MIPS reported bike helmet inventory is expected to stabilize over time, especially for lower-priced helmets. Stock levels for snow helmets are expected to be low for the coming season. Other Sports sub-categories include equestrian and team sports.
"The situation in the world has been cataclysmic during the first quarter 2022 with Russia's invasion of Ukraine and continued challenges in the global supply chain," said Max Strandwitz, MIPS president and CEO. "I am therefore very pleased that we still continue to increase sales with a continuously high profitability."
First-quarter net income was up 50% year-over-year, from SEK 32 million to SEK 48 million. Earnings per share increased 49%, from SEK 1.23 to SEK 1.83.
"I am very pleased with how the new year has started for us," Strandwitz said. "Shutdowns in China as a result of the spread of COVID-19 have been challenging both for us and several of our partners during the quarter. Despite this, we have successfully navigated through the challenges without experiencing any substantial impact on our sales or financial results."
On the sustainability front, MIPS announced it is now operating in accordance with the Paris Agreement's goal of keeping global warming to under 2 degrees Celsius and aiming to limit it to 1 ½ degrees.
"Our sustainability results will therefore be measured in relation to these goals enabling us to be clearer about the progress that we are making within our sustainability work," Strandwitz said.
MIPS' corporate headquarters is in Stockholm, and its stock is traded on the Stockholm Stock Exchange under the MIPS symbol. Stock quote at Marketwatch.com.
