STOCKHOLM (BRAIN) — Despite some bike helmet sales growth in the Sport sub-category, MIPS' fourth-quarter net sales decreased 15% year-over-year while yearly net sales were down 37%.
Net sales for the fourth quarter were SEK 91 million ($8.7 million), compared with SEK 107 million at the same time last year. Yearly net sales were SEK 357 million, compared with SEK 563 million in 2022.
Fourth-quarter Sport sub-category revenue decreased 11%, from SEK 95 million to SEK 85 million at the same time last year. For the year, Sport sub-category revenue decreased 37%, from SEK 511 million to SEK 323 million.
The helmet technology company said bike helmet sales grew for the first time in more than a year. The sale overcame the "bullwhip effect" created by the pandemic, said MIPS' president and CEO, Max Strandwitz.
"We have previously stated that, in our assessment, the bike sub-category will see a positive development in 2024. This assessment remains unchanged. We believe that the majority of the growth in this sub-category in the coming years will be driven by our customers buying products from us to enable new production of helmets, in contrast to the last few quarters when they have sold helmets they already had in stock to their customers in retail."
MIPS' customers are helmet manufacturers who license MIPS technology for helmet production.
Net income was SEK 16 million for the quarter, down 15% from SEK 19 million year-over-year. For 2023, net income was down 63%, from SEK 175 million to SEK 64 million. Fourth-quarter earnings per share was down 16%, from SEK 0.71, compared with SEK 0.60; for the year, it declined 64%, from SEK 6.68 to SEK 2.43.
"I am naturally not satisfied with the financial performance in 2023," Strandwitz said. "It has been a difficult year with challenging external factors that we have done our utmost to counter. We have continued to advance our position and have strengthened our offering and MIPS as a brand. This has been possible thanks to our sustained investment in our strategic initiatives. We are confident that we have the right strategy, which will continue to support our long-term plan and journey towards our financial targets."
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.
