STOCKHOLM (BRAIN) — Net sales for MIPS increased 25% in the first quarter year-over-year despite the COVID-19 pandemic affecting retailers worldwide.
For the quarter ending in March, the helmet technology company had sales totaling SEK 56 million ($5.6 million). Adjusted for exchange rate and acquisitions, net sales went up 16%.
Operating profit increased 38% to SEK 16 million ($1.6 million). Adjusted operating profit was up 43% to SEK 17 million ($1.7 million). Earnings per diluted share was up 24% to SEK 0.47 ($.048).
“At the start of the year, few could imagine the world would face one of its greatest challenges of modern times,” said Max Strandwitz, president and CEO. “Initially, we noticed an impact on our supply chain as a large part of the world’s helmets is produced in China. The Chinese subcontractors and helmet manufacturers with which we cooperate resumed production later than planned after the Chinese New Year and have gradually returned to normal production capacity during February and March. I am glad to say we have successfully navigated us through the production challenges and at the same time been able to deliver growth despite the prevailing circumstances during the first quarter.”
Strandwitz said despite the winter ski seasons ending early, he doesn’t expect that to affect sales volumes. “However, I believe that if the purchasing power of consumers weakens as a result of a deep recession, together with less traveling, then the need for new helmets will decrease and there will be a subsequent risk that it will affect us,” he said.
MIPS' corporate headquarters is in Stockholm. Its stock is traded on the Stockholm Stock Exchange under the MIPS symbol. Stock quote at Marketwatch.com.
