Quarterly results
MIPS AB said fourth quarter net sales reached SEK 147 million, reflecting a 2% increase from the same period a year earlier and an 18% rise on an organic basis. Despite the top-line growth, the revenue figure landed about 5% below consensus expectations.
Profitability and margin impact
Adjusted EBIT was reported at SEK 51 million, which missed consensus by 9% and was 18% lower than the prior year's comparable quarter. Management attributed the shortfall primarily to SEK 7 million in legal expenses and negative effects from foreign exchange movements. The adjusted EBIT margin contracted by 8.0 percentage points year-over-year to 34.9%.
Gross profit
Gross profit for the quarter amounted to SEK 107 million, up 2% compared with the year-ago period. Gross margin remained steady at 72.9%, unchanged from the prior-year quarter.
Category performance
The company reported growth across every helmet category. The Sports segment continued to gain momentum, marked by a ninth consecutive quarter of increasing bike volumes. Moto showed robust organic growth, with sales rising 32% year-over-year on an organic basis. The Safety category recorded the strongest organic expansion at 41% year-over-year.
Regional trends
Geographic performance was uneven. Europe led regional growth with sales up 14% year-over-year, and North America contributed a 12% year-over-year increase. By contrast, Asia & Australia recorded a sharp decline, and sales in Sweden were broadly flat relative to the prior year.
Management outlook and strategic drivers
Company management continues to point to long-term growth potential, citing benefits from brand positioning, market share gains, category expansion and the acquisition of Koroyd. At the same time, management described underlying demand trends as constructive but did not signal changes to near-term guidance in the materials provided.
Bottom line
The quarter combined modest top-line expansion and resilient gross margins with a profitability setback driven by discrete legal charges and adverse currency movements. While product categories and several regions showed healthy growth, weakness in Asia & Australia and the hit to adjusted EBIT weighed on overall results.