Contrasting Q1 sales for VMC Rapala and Shimano
Article Media Click images to enlarge +
Two of the world’s biggest fishing tackle manufacturers reported contrasting sales fortunes in the first quarter of 2016.
Lure making giant, Rapala VMC Corporation, reported First Quarter net sales of €69.7 million – 6% down from the previous year (€73.9 million) – while fishing tackle sales at Shimano increased 5% compared to the same period in 2015 to 16,796 million yen.
Despite reporting a slow start to 2016, Rapala says that its financial guidance for the year remains unchanged and that it expects net sales and comparable operating profit to be above last year’s levels.
President and CEO Jorma Kasslin told investors: “The year started a bit slow, but did not include any major surprises. In North America the ice fishing season ended up being short, but now attention has shifted to the summer fishing.”
He added that although the Russian business environment continued to be ‘challenging’, there were some signs of stabilisation in the market. “Conditions are also difficult in some other regions, but we are well positioned to face the challenges.”
Shimano’s fishing operation is dwarfed by its bicycle components business, which saw its net sales drop by 20.3% from the same period last year to 65.3 billion yen, resulting in a 16.2% decrease in group sales compared to 2015.
The new owner of Pure Fishing, Newell Brands, reported strong first quarter results with core sales growth of 5.6% and increases in all five business segments and all four regions.
The fishing business formally became part of Newell Brands when its takeover of the Jarden Corporation was officially completed last month.
Fishing Republic, one of the UK’s largest retailers of angling tackle, reported ‘encouraging’ results in line with expectations following its first year as a publicly quoted company on the London Stock Exchange.
Revenue increased by 22% to £4.12 million (2014: £3.39 million). Profit before tax and exceptional items was up 3% to £305,000 (2015: £295,000).
Steve Gross, Chief Executive, said: “It has been an exciting year for Fishing Republic, with our admission to AIM marking an important step in the development of the business. The funds we raised at admission have helped to support a 45% increase in sales in the second half year-on-year and along with additional new funds raised in December, we have been able to expand our store network and grow sales online.
“The business is well placed for the new fishing season and we remain very optimistic about prospects as we look to continue to develop.”