{"success":true,"data":{"pressRelease":{"id":"123761","rtpr_id":"nGNE38SYCs","ticker":"RAP1V","exchange":"Nasdaq Helsinki","all_tickers":["RAP1V"],"title":"REG-Rapala VMC’s H1/2026: Strong dynamics in North America led to improved sales and profitability","author":"Globe Newswire","published_at":"2026-08-20T11:10:00.161Z","article_body":"RAPALA VMC CORPORATION, Half Year Financial Report, August 20, 2026 at 2:10\np.m. EEST\n\nApril-June (Q2) in brief\n* Net sales were 65.3 MEUR, up 9% from previous year (60.1). With comparable\nexchange rates sales were 9% up from previous year.\n* Comparable operating profit* was 5.6 MEUR (3.0).\n* Cash flow from operations was 20.5 MEUR (15.5).\nJanuary-June (H1) in brief\n* Net sales were 134.8 MEUR, up 7% from previous year (125.5). With comparable\nexchange rates sales were 11% up from previous year.\n* Comparable operating profit* was 13.5 MEUR (8.6).\n* Earnings per share (basic and diluted) was 0.19 EUR (0.02).\n* Cash flow from operations was 16.7 MEUR (6.2).\n* Inventories were 80.1 MEUR (82.2).\n* Short-term outlook: Rapala VMC expects 2026 full year comparable operating\nprofit (excluding mark-to-market valuations of operative currency derivatives\nand other items affecting comparability) to be in the range of 12 to 14 MEUR\n(2025: 8.4 MEUR).\n* Excluding mark-to-market valuations of operative currency derivatives and\nother items affecting comparability. Other items affecting comparability\ninclude material restructuring costs, impairments, gains and losses on\nbusiness combinations and disposals, insurance compensations,\nregulatory-related items and other non-operational items\n\nPresident and CEO Cyrille Viellard: “Replenishment demand has further\nremained robust in Q2/2026 in the Company’s core North American market,\nfollowing strong initial fill deliveries in Q1/2026 for the open-water season.\nThis has compensated for softer demand in Europe, where drought conditions and\nweaker consumer spending have weighed on market activity. Both growth and\nslower markets have been well managed by our Rapala VMC global team leading to\nimproved performance year-over-year overall. Big thanks to all!\n\nWhile macroeconomic uncertainty persists amid geopolitical instability and\ntariff volatility, the Company’s strong first-half 2026 performance, healthy\ninventory levels in the winter fishing category in North America, and a robust\ninnovation pipeline reinforce the Company’s confidence in Rapala VMC's\nrecovery trajectory.\n\nOur continued focus on cash flow resulted in strong cash generation in\nH1/2026, supported by improved EBITDA, disciplined capital expenditure and\nworking capital management, as well as the repayment of IEEPA tariffs. The\nexpiration of the Section 122 global tariffs on July 24 and their replacement\nby permanent Section 301 tariffs is currently expected to have a neutral to\nslightly positive impact. However, we remain cautious as the tariff\nenvironment continues to evolve and further significant changes are expected.\n\nThe Group will continue advancing its brand strategy in H2/2026 and strengthen\nmarketing investments to support sustained long-term growth.”\n\n Key figures\n\n                                             Q2     Q2     H1     H1     FY     \n MEUR                                        2026   2025   2026   2025   2025   \n Net sales                                   65.3   60.1   134.8  125.5  227.5  \n Operating profit                            8.1    3.1    15.8   9.1    4.2    \n % of net sales                              12.4%  5.2%   11.7%  7.3%   1.9%   \n Comparable operating profit *               5.6    3.0    13.5   8.6    8.4    \n % of net sales                              8.6%   5.0%   10.0%  6.9%   3.7%   \n Cash flow from operations                   20.5   15.5   16.7   6.2    5.5    \n Gearing %                                   41.0%  39.2%  41.0%  39.2%  53.5%  \n Earnings per share, EUR, basic and diluted                0.19   0.02   -0.23  \n\n* Excluding mark-to-market valuations of operative currency derivatives and\nother items affecting comparability. Other items affecting comparability\ninclude material restructuring costs, impairments, gains and losses on\nbusiness combinations and disposals, insurance compensations,\nregulatory-related items and other non-operational items.\n\nRapala Group presents alternative performance measures to reflect the\nunderlying business performance and to enhance comparability between financial\nperiods. Alternative performance measures should not be considered in\nisolation as a substitute for measures of performance in accordance with IFRS.\nDefinitions and reconciliation of key figures are presented in the financial\nsection of the release.\n\nMarket Environment\nThe Group’s net sales for the first half of the year were 7% above the\ncomparison period with reported translation exchange rates. With comparable\ntranslation exchange rates, net sales were organically up by 11% from the\ncomparison period.\n\nDuring the first half of the year, the operating environment was affected by\ngeopolitical instability and tariff volatility. Despite continued\nmacroeconomic uncertainty, the North American market remained resilient, with\nconsumer demand improving compared to the prior year. The European market\nremained subdued, with consumer demand further dampened by drought conditions.\n\nBusiness Review January – June 2026\n\nNorth America\nIn the first half of the year sales in North America increased by 12% from the\ncomparison period. With comparable translation exchange rates sales were up by\n19%.\n\nSales in the North American market remained strong in the second quarter,\nbuilding on the strong performance in the first quarter. Second-quarter\nreplenishment sales demonstrated healthy sell-through of the initial load-in\norders shipped at the beginning of the year, as well as the success of new\nproduct introductions. Growth remained broad-based across all key brands, led\nby the flagship Rapala brand.\n\nEurope\nIn the first half of the year sales in Europe stayed on the same level as the\ncomparison period with both reporting and comparable exchange rates.\n\nThe year started with an improved outlook and higher pre-season deliveries.\nHowever, drought and challenging weather conditions weakened consumer demand\nin parts of continental Europe, impacting replenishment sales in the second\nquarter. Sales of Rapala and Okuma exceeded the prior-year level, while sales\ndeclined for brands with greater exposure to the parts of continental European\nmarkets affected by adverse weather conditions.\n\nRest of the World\nIn the first half of the year sales in the Rest of the World market increased\nby 9% from the comparison period with both comparable translation exchange\nrates and reporting rates.\n\nGrowth in the region was mainly driven by Latin American markets, where\npositive momentum continued throughout the reporting period and the new Okuma\ndistributorship in Chile contributed incremental sales. Sales in Asian markets\nremained challenging and declined, as global trade disputes continued to weigh\non consumer sentiment and discretionary spending.\n\nExternal net sales by area\n\n                    Q2    Q2    Change  Comparable  FY     \n MEUR               2026  2025  %       change %    2025   \n North America      36.7  31.5  +17%    +18%        122.8  \n Europe             21.7  22.6  -4%     -4%         79.7   \n Rest of the World  6.9   6.0   +15%    +11%        25.0   \n Total              65.3  60.1  +9%     +9%         227.5  \n\n\n\n                    H1     H1     Change  Comparable  FY     \n MEUR               2026   2025   %       change %    2025   \n North America      77.2   69.0   +12%    +19%        122.8  \n Europe             44.4   44.5   0%      0%          79.7   \n Rest of the World  13.2   12.1   +9%     +9%         25.0   \n Total              134.8  125.5  +7%     +11%        227.5  \n\nFinancial Results and Profitability\nIn the first half of the year comparable (excluding mark-to-market valuations\nof operative currency derivatives and other items affecting comparability)\noperating profit increased by 4.9 MEUR from the comparison period. Reported\noperating profit increased by 6.7 MEUR from the comparison period and the\nitems affecting comparability had a positive impact of 2.4 MEUR (positive 0.5)\non reported operating profit.\n\nComparable operating profit margin was 10.0% (6.9) for the first half of the\nyear. The improved profitability was primarily driven by increased sales in\nthe open water markets. Overall profitability also benefitted from slightly\nimprove sales margin and from lower operating expense level.\n\nReported operating profit margin was 11.7% (7.3) for the first half. Reported\noperating profit includes a -0.1 MEUR (0.6) mark-to-market valuation of\noperative currency derivatives. Other items affecting comparability, included\nin the reported operating profit, were 2.4 MEUR (-0.2). This amount includes\nmostly gains from the refunding of IEEPA tariffs in the US. Prior year’s\nother items include the disposal of real estate in Finland, as well as a\nnon-cash currency translation loss relating to the closure of the Russian\nmanufacturing operation.\n\nTotal financial (net) expenses were 3.3 MEUR (4.9) for the first half of the\nyear. Net interest and other financing expenses were 3.6 MEUR (3.5) and (net)\nforeign exchange gains were 0.2 MEUR (losses 1.3).\n\nNet profit for the first half of the year increased by 6.2 MEUR and was 8.5\nMEUR (2.2) and earnings per share (basic and diluted) was 0.19 EUR (0.02).\n\nKey figures\n\n                                Q2    Q2    H1     H1     FY     \n MEUR                           2026  2025  2026   2025   2025   \n Net sales                      65.3  60.1  134.8  125.5  227.5  \n Operating profit / loss        8.1   3.1   15.8   9.1    4.2    \n Comparable operating profit *  5.6   3.0   13.5   8.6    8.4    \n Net profit / loss                          8.5    2.2    -4.9   \n\n* Excluding mark-to-market valuations of operative currency derivatives and\nother items affecting comparability. Other items affecting comparability\ninclude material restructuring costs, impairments, gains and losses on\nbusiness combinations and disposals, insurance compensations,\nregulatory-related items and other non-operational items.\n\nBridge calculation of comparable operating profit\n\n                                                              Q2    Q2    H1    H1    FY    \n MEUR                                                         2026  2025  2026  2025  2025  \n Operating profit / loss                                      8.1   3.1   15.8  9.1   4.2   \n Mark-to-market valuations of operative currency derivatives  0.0   -0.1  0.1   -0.6  -0.6  \n Other items affecting comparability                          -2.4  0.0   -2.4  0.2   4.8   \n Comparable operating profit                                  5.6   3.0   13.5  8.6   8.4   \n\nMore detailed bridge of comparable operating profit and definitions and\nreconciliation of key figures are presented in the financial section of the\nrelease.\n\nFinancial Position\nIn January–June cash flow from operations increased from the previous year\nand landed at 16.7 MEUR (6.2). Change in net working capital had a negative\n1.8 MEUR (negative 4.8) impact on cash flow. Excluding working capital impact,\ncash flow from operations improved from the previous year and was 18.5 MEUR\n(11.0), driven by improved profitability, strong focus on cash flow, as well\nas the repayment of IEEPA tariffs.\n\nEnd of the period inventory was 80.1 MEUR (82.2). The change in obsolescence\nallowance decreased inventory value by 2.3 MEUR. Changes in translation\nexchange rates increased inventory value by 1.0 MEUR. Organic decrease in\ninventory was 0.8 MEUR. Inventory turn improved and the composition was\nhealthy.\n\nIn January–June net cash used in investing activities was 1.6 MEUR (0.7).\nCapital expenditure was 1.6 MEUR (1.8) and disposals 0.1 MEUR (1.1).\nExpenditure consisted mainly of maintenance of manufacturing capacity and\ninvestments in new products. Prior year disposals include proceeds from the\nsale of real estate in Finland.\n\nLiquidity position of the Group was good. Undrawn committed long-term credit\nfacilities amounted to 21.3 MEUR. Commercial papers sold under the commercial\npaper program amounted to 11.0 MEUR (14.0) at the end of the reporting period.\nGearing ratio increased and equity-to-assets ratio decreased from last year.\n\nThe Group’s 91.5 MEUR senior secured term and revolving credit facilities\nagreement includes financial covenants based on the net debt to EBITDA ratio\n(“leverage ratio”), the ratio of net debt to consolidated equity and the\nminimum liquidity. The financial leverage ratio covenant level for periods\nQ4/2025 to Q2/2026 is 3.80, for periods Q3/2026 to Q4/2027 3.50 and from\nQ1/2028 onwards 3.20. Covenants are regularly tested, either quarterly or on\nthe last day of each month. The risk of breaching the covenants would trigger\nnegotiations between the Group and lending banks to resolve the potential\ncovenant breach, and to agree on actions to rectify the situation. In the\nunlikely event of unresolved covenant breach, the lending banks would have the\nright to call all or any part of the loans and related interest.\n\nOn Q1/2026 and Q2/2026 testing dates, the leverage ratio landed at 3.59 and\n2.28. Calculation of the covenants include customary adjustments mainly\nrelated to items affecting comparability and asset disposals, and therefore\ndeviate from the reported figures elsewhere in this report. The Group is\ncurrently compliant with all financial covenants and expects to comply with\nfuture bank requirements as well. The Group’s liquidity position remains\ngood, and cash and cash equivalents amounted to 28.5 MEUR at June 30, 2026.\n\nThe Group equity includes a hybrid loan of 25.0 MEUR issued in November 2025.\nThe accumulated non-recognized interest on hybrid bond were 1.3 MEUR.\n\nKey figures\n\n                                             Q2     Q2     H1     H1     FY     \n MEUR                                        2026   2025   2026   2025   2025   \n Cash flow from operations                   20.5   15.5   16.7   6.2    5.5    \n Inventory at the end of the period          80.1   82.2   80.1   82.2   84.4   \n Net cash used in investing activities       -0.7   0.1    -1.6   -0.7   -2.7   \n Net interest-bearing debt at end of period  60.1   58.6   60.1   58.6   72.9   \n Gearing %                                   41.0%  39.2%  41.0%  39.2%  53.5%  \n Equity-to-assets ratio at end of period, %  50.5%  52.3%  50.5%  52.3%  49.3%  \n\nDefinitions and reconciliation of key figures are presented in the financial\nsection of the release. \n\nProduct Development \nRapala turns 90 years in 2026, but is not resting on its laurels. On the\ncontrary: Innovation has again been driving the sales during the first half of\n2026. Consumer adoption of the 2026 hero lure Claptail has been exceptionally\ngood and led to the launch of two new sizes of Claptail, 75 and 90 at ICAST\n2026. Topwater fishing continues to be a driving force in new freshwater\nhardbaits.\n\nOther important new hardbaits that have been driving Rapala’s sales include\nthe Harvest Shad and Snare crankbaits that are catering to the important\n9,99€ retail category. Rapala also introduced Precision Xtreme Air Boss\njerkbaits, which represent the next generation of highly technical wobblers\nspecifically developed for European predator fishing.\n\nRapala softbaits continued to grow in all key markets. Crushcity range\nexpanded with Mooch Minnow that is specifically developed for forward facing\nsonar applications. The combination of Rapala Predator softbaits and VMC\nMustache heads continued as the driver of European softbait business.\n\nOn the accessories side Rapala tools have been sold in new packaging designed\nto reduce plastic use while strengthening the brand image. Following a\nsuccessful early launch of the CountDown and Hydro bags in Southern Europe and\nAustralia in Q4 2025, both product lines are now available across South\nAmerica, Northern Europe and APAC, where they are delivering strong results\nand consistent turnover. Together, these launches are contributing to the\ncontinued rejuvenation of Rapala Accessories.\n\nThe first introductions of 2027 new items to retail chains have commenced in\nQ2. The reception has been very promising, and all the new exciting items are\npresented to consumers from July’s ICAST show followed by AFTA in Australia\nin August.\n\nAt ICAST 2026, 13 Fishing introduced a significantly expanded lineup of rods,\nreels, and combos designed to reinforce the brand’s position as an\ninnovation and performance driven competitor. The launches strengthened the\nassortment across multiple price points and product categories, giving anglers\nmore complete, purpose-built solutions while creating greater opportunities\nfor retail placement and cross-category selling. Collectively, the\nintroductions represent an important step in broadening the brand’s consumer\nreach, increasing its relevance at retail, and building a stronger platform\nfor future growth. ICAST 2026 saw 4 wins for Rapala VMC with Best of Show for\nFreshwater Soft Lure with the sea urchin style C.E.O. bait, for Saltwater Soft\nLure with the shrimp style Imposter, for Best Fishing Accessory with the High\nCapacity Line Remover and Best Novelty or Wellness with the Bald Eagle Giant\nOriginal Floater underlining the industry recognized innovation and brand\nstrength of Rapala.\n\nSufix Calibr8 is a highly anticipated 8-carrier braided line introduced at\nICAST 2026, designed to eliminate guesswork for anglers by tailoring the\nline's diameter and weave specifically to individual fishing techniques.\nLighter pound tests feature a thinner, smoother weave for optimal performance\non spinning reels. Heavier tests feature a slightly tighter weave and pick\ncount to add body and strength for baitcasting and heavy-cover fishing.\n\nOkuma's first half of 2026 was marked by the global launch of the Zyros\nspinning reel, with the European predator segment among its primary markets.\nBuilt around Okuma's C-40X™ long-strand carbon fiber construction, Zyros\nweighs just 199 g in the 2500 size at a €100 retail price. Consumer response\nwas immediate: within two months, Zyros had become Okuma's third best-selling\nreel. In spinning rods, the newly introduced G-Control freshwater series and\nCeymar SW range have been well received.\n\nPersonnel and Organization\nAverage number of personnel was relatively stable at 1 418 (1 424) for the\nfirst half of the year. At the end of June, the number of personnel was 1 442\n(1 451).\n\nShort-term Outlook and Risks\nReplenishment demand remained robust in Q2/2026 in the core North American\nmarket, following strong initial fill deliveries in Q1/2026 for the open-water\nseason. This has compensated for softer demand in Europe, where drought\nconditions and weaker consumer spending have weighed on market activity. While\nmacroeconomic uncertainty persists amid geopolitical instability and tariff\nvolatility, the strong first-half 2026 performance, healthy inventory levels\nin the winter fishing category in North America, and a robust innovation\npipeline reinforce the confidence in Rapala VMC's recovery trajectory and\nunderpin the Group’s improved full-year outlook.\n\nOur guidance reflects current market conditions but remains subject to\npotential trade-related disruptions, including tariffs and regulatory changes,\nwhich may impact demand and cost structures.\n\nConsequently, the Group revised the outlook (stock exchange release August 14,\n2026) and expects 2026 full year comparable operating profit (excluding\nmark-to-market valuations of operative currency derivatives and other items\naffecting comparability) to be in the range of 12 to 14 MEUR (2025: 8.4 MEUR).\n\nShort-term risks and uncertainties are described in more detail at the end of\nthis report.\n\nAnnual General Meeting\nThe AGM approved the Board of Director’s proposal, according to which no\ndividend be paid based on the adopted balance sheet for the financial year\n2025. The AGM approved that the Board of Directors consists of six members.\nEmmanuel Viellard, Julia Aubertin, Vesa Luhtanen, Alexander Rosenlew, Pascal\nLebard and Johan Berg were re-elected as members of the Board of Directors. A\nseparate stock exchange release on the decisions of the AGM has been given,\nand up to date information on the Board’s authorizations and other decisions\nof the AGM are available also on the corporate website.\n\nAuthorised Public Accountants Firm Deloitte Ltd was elected as the Company’s\nauditor. Deloitte Ltd will also carry out the assurance of the company’s\nsustainability reporting for the financial year 2026 in accordance with the\ntransitional provision of the act amending the Limited Liability Companies Act\n(1252/2023) and will be imbursed for this task as per its invoice approved by\nthe company.\n\n\n\nHelsinki, August 20, 2026\n\nBoard of Directors of Rapala VMC Corporation\n\n\n\nFor further information, please contact:\n\nCyrille Viellard, President and Chief Executive Officer, +358 9 7562 540\n\nMiikka Tarna, Chief Financial Officer, +358 9 7562 540\n\nTuomo Leino, Investor Relations, +358 9 7562 540\n\nAn audiocast on the first half year result will be arranged on Friday August\n21, 2026, at 10:00 a.m EEST.\n\nPlease join the audiocast by registering using the following\nlink: https://events.inderes.com/rapala/2026-h1-results\n\nFinancial information and recording of the audiocast will be available\nat www.rapalavmc.com\n\nAbout Rapala VMC Corporation\nRapala VMC Group is the world’s leading fishing tackle company with a\nlargest distribution network in the industry.   The Group is a global market\nleader in fishing lures, treble hooks and fishing related knives and tools.\nThe main manufacturing facilities are in Finland, France, Estonia, and the UK.\nThe Group’s brand portfolio includes leading brands in the industry such as\nRapala, VMC, Sufix, 13Fishing as well as Okuma in Europe. The Group, with net\nsales of EUR 228 million in 2025, employs some 1 400 people in approximately\n40 countries. Rapala VMC Corporation’s share is listed and traded on the\nNasdaq Helsinki stock exchange since 1998.\n\nwww.rapalavmc.com\n\nAttachment\n*     RAPALA VMC HALF YEAR REPORT H1 2026\n(https://ml-eu.globenewswire.com/Resource/Download/dfd3f260-f3d3-4cf3-b49c-2b75875012a8)","article_body_html":"","raw_payload":{"data":{"id":"nGNE38SYCs","title":"REG-Rapala VMC’s H1/2026: Strong dynamics in North America led to improved sales and profitability","author":"Globe Newswire","ticker":"RAP1V","created":"2026-08-20T11:10:00.161Z","tickers":["RAP1V"],"exchange":"Nasdaq Helsinki","article_body":"RAPALA VMC CORPORATION, Half Year Financial Report, August 20, 2026 at 2:10\np.m. EEST\n\nApril-June (Q2) in brief\n* Net sales were 65.3 MEUR, up 9% from previous year (60.1). With comparable\nexchange rates sales were 9% up from previous year.\n* Comparable operating profit* was 5.6 MEUR (3.0).\n* Cash flow from operations was 20.5 MEUR (15.5).\nJanuary-June (H1) in brief\n* Net sales were 134.8 MEUR, up 7% from previous year (125.5). With comparable\nexchange rates sales were 11% up from previous year.\n* Comparable operating profit* was 13.5 MEUR (8.6).\n* Earnings per share (basic and diluted) was 0.19 EUR (0.02).\n* Cash flow from operations was 16.7 MEUR (6.2).\n* Inventories were 80.1 MEUR (82.2).\n* Short-term outlook: Rapala VMC expects 2026 full year comparable operating\nprofit (excluding mark-to-market valuations of operative currency derivatives\nand other items affecting comparability) to be in the range of 12 to 14 MEUR\n(2025: 8.4 MEUR).\n* Excluding mark-to-market valuations of operative currency derivatives and\nother items affecting comparability. Other items affecting comparability\ninclude material restructuring costs, impairments, gains and losses on\nbusiness combinations and disposals, insurance compensations,\nregulatory-related items and other non-operational items\n\nPresident and CEO Cyrille Viellard: “Replenishment demand has further\nremained robust in Q2/2026 in the Company’s core North American market,\nfollowing strong initial fill deliveries in Q1/2026 for the open-water season.\nThis has compensated for softer demand in Europe, where drought conditions and\nweaker consumer spending have weighed on market activity. Both growth and\nslower markets have been well managed by our Rapala VMC global team leading to\nimproved performance year-over-year overall. Big thanks to all!\n\nWhile macroeconomic uncertainty persists amid geopolitical instability and\ntariff volatility, the Company’s strong first-half 2026 performance, healthy\ninventory levels in the winter fishing category in North America, and a robust\ninnovation pipeline reinforce the Company’s confidence in Rapala VMC's\nrecovery trajectory.\n\nOur continued focus on cash flow resulted in strong cash generation in\nH1/2026, supported by improved EBITDA, disciplined capital expenditure and\nworking capital management, as well as the repayment of IEEPA tariffs. The\nexpiration of the Section 122 global tariffs on July 24 and their replacement\nby permanent Section 301 tariffs is currently expected to have a neutral to\nslightly positive impact. However, we remain cautious as the tariff\nenvironment continues to evolve and further significant changes are expected.\n\nThe Group will continue advancing its brand strategy in H2/2026 and strengthen\nmarketing investments to support sustained long-term growth.”\n\n Key figures\n\n                                             Q2     Q2     H1     H1     FY     \n MEUR                                        2026   2025   2026   2025   2025   \n Net sales                                   65.3   60.1   134.8  125.5  227.5  \n Operating profit                            8.1    3.1    15.8   9.1    4.2    \n % of net sales                              12.4%  5.2%   11.7%  7.3%   1.9%   \n Comparable operating profit *               5.6    3.0    13.5   8.6    8.4    \n % of net sales                              8.6%   5.0%   10.0%  6.9%   3.7%   \n Cash flow from operations                   20.5   15.5   16.7   6.2    5.5    \n Gearing %                                   41.0%  39.2%  41.0%  39.2%  53.5%  \n Earnings per share, EUR, basic and diluted                0.19   0.02   -0.23  \n\n* Excluding mark-to-market valuations of operative currency derivatives and\nother items affecting comparability. Other items affecting comparability\ninclude material restructuring costs, impairments, gains and losses on\nbusiness combinations and disposals, insurance compensations,\nregulatory-related items and other non-operational items.\n\nRapala Group presents alternative performance measures to reflect the\nunderlying business performance and to enhance comparability between financial\nperiods. Alternative performance measures should not be considered in\nisolation as a substitute for measures of performance in accordance with IFRS.\nDefinitions and reconciliation of key figures are presented in the financial\nsection of the release.\n\nMarket Environment\nThe Group’s net sales for the first half of the year were 7% above the\ncomparison period with reported translation exchange rates. With comparable\ntranslation exchange rates, net sales were organically up by 11% from the\ncomparison period.\n\nDuring the first half of the year, the operating environment was affected by\ngeopolitical instability and tariff volatility. Despite continued\nmacroeconomic uncertainty, the North American market remained resilient, with\nconsumer demand improving compared to the prior year. The European market\nremained subdued, with consumer demand further dampened by drought conditions.\n\nBusiness Review January – June 2026\n\nNorth America\nIn the first half of the year sales in North America increased by 12% from the\ncomparison period. With comparable translation exchange rates sales were up by\n19%.\n\nSales in the North American market remained strong in the second quarter,\nbuilding on the strong performance in the first quarter. Second-quarter\nreplenishment sales demonstrated healthy sell-through of the initial load-in\norders shipped at the beginning of the year, as well as the success of new\nproduct introductions. Growth remained broad-based across all key brands, led\nby the flagship Rapala brand.\n\nEurope\nIn the first half of the year sales in Europe stayed on the same level as the\ncomparison period with both reporting and comparable exchange rates.\n\nThe year started with an improved outlook and higher pre-season deliveries.\nHowever, drought and challenging weather conditions weakened consumer demand\nin parts of continental Europe, impacting replenishment sales in the second\nquarter. Sales of Rapala and Okuma exceeded the prior-year level, while sales\ndeclined for brands with greater exposure to the parts of continental European\nmarkets affected by adverse weather conditions.\n\nRest of the World\nIn the first half of the year sales in the Rest of the World market increased\nby 9% from the comparison period with both comparable translation exchange\nrates and reporting rates.\n\nGrowth in the region was mainly driven by Latin American markets, where\npositive momentum continued throughout the reporting period and the new Okuma\ndistributorship in Chile contributed incremental sales. Sales in Asian markets\nremained challenging and declined, as global trade disputes continued to weigh\non consumer sentiment and discretionary spending.\n\nExternal net sales by area\n\n                    Q2    Q2    Change  Comparable  FY     \n MEUR               2026  2025  %       change %    2025   \n North America      36.7  31.5  +17%    +18%        122.8  \n Europe             21.7  22.6  -4%     -4%         79.7   \n Rest of the World  6.9   6.0   +15%    +11%        25.0   \n Total              65.3  60.1  +9%     +9%         227.5  \n\n\n\n                    H1     H1     Change  Comparable  FY     \n MEUR               2026   2025   %       change %    2025   \n North America      77.2   69.0   +12%    +19%        122.8  \n Europe             44.4   44.5   0%      0%          79.7   \n Rest of the World  13.2   12.1   +9%     +9%         25.0   \n Total              134.8  125.5  +7%     +11%        227.5  \n\nFinancial Results and Profitability\nIn the first half of the year comparable (excluding mark-to-market valuations\nof operative currency derivatives and other items affecting comparability)\noperating profit increased by 4.9 MEUR from the comparison period. Reported\noperating profit increased by 6.7 MEUR from the comparison period and the\nitems affecting comparability had a positive impact of 2.4 MEUR (positive 0.5)\non reported operating profit.\n\nComparable operating profit margin was 10.0% (6.9) for the first half of the\nyear. The improved profitability was primarily driven by increased sales in\nthe open water markets. Overall profitability also benefitted from slightly\nimprove sales margin and from lower operating expense level.\n\nReported operating profit margin was 11.7% (7.3) for the first half. Reported\noperating profit includes a -0.1 MEUR (0.6) mark-to-market valuation of\noperative currency derivatives. Other items affecting comparability, included\nin the reported operating profit, were 2.4 MEUR (-0.2). This amount includes\nmostly gains from the refunding of IEEPA tariffs in the US. Prior year’s\nother items include the disposal of real estate in Finland, as well as a\nnon-cash currency translation loss relating to the closure of the Russian\nmanufacturing operation.\n\nTotal financial (net) expenses were 3.3 MEUR (4.9) for the first half of the\nyear. Net interest and other financing expenses were 3.6 MEUR (3.5) and (net)\nforeign exchange gains were 0.2 MEUR (losses 1.3).\n\nNet profit for the first half of the year increased by 6.2 MEUR and was 8.5\nMEUR (2.2) and earnings per share (basic and diluted) was 0.19 EUR (0.02).\n\nKey figures\n\n                                Q2    Q2    H1     H1     FY     \n MEUR                           2026  2025  2026   2025   2025   \n Net sales                      65.3  60.1  134.8  125.5  227.5  \n Operating profit / loss        8.1   3.1   15.8   9.1    4.2    \n Comparable operating profit *  5.6   3.0   13.5   8.6    8.4    \n Net profit / loss                          8.5    2.2    -4.9   \n\n* Excluding mark-to-market valuations of operative currency derivatives and\nother items affecting comparability. Other items affecting comparability\ninclude material restructuring costs, impairments, gains and losses on\nbusiness combinations and disposals, insurance compensations,\nregulatory-related items and other non-operational items.\n\nBridge calculation of comparable operating profit\n\n                                                              Q2    Q2    H1    H1    FY    \n MEUR                                                         2026  2025  2026  2025  2025  \n Operating profit / loss                                      8.1   3.1   15.8  9.1   4.2   \n Mark-to-market valuations of operative currency derivatives  0.0   -0.1  0.1   -0.6  -0.6  \n Other items affecting comparability                          -2.4  0.0   -2.4  0.2   4.8   \n Comparable operating profit                                  5.6   3.0   13.5  8.6   8.4   \n\nMore detailed bridge of comparable operating profit and definitions and\nreconciliation of key figures are presented in the financial section of the\nrelease.\n\nFinancial Position\nIn January–June cash flow from operations increased from the previous year\nand landed at 16.7 MEUR (6.2). Change in net working capital had a negative\n1.8 MEUR (negative 4.8) impact on cash flow. Excluding working capital impact,\ncash flow from operations improved from the previous year and was 18.5 MEUR\n(11.0), driven by improved profitability, strong focus on cash flow, as well\nas the repayment of IEEPA tariffs.\n\nEnd of the period inventory was 80.1 MEUR (82.2). The change in obsolescence\nallowance decreased inventory value by 2.3 MEUR. Changes in translation\nexchange rates increased inventory value by 1.0 MEUR. Organic decrease in\ninventory was 0.8 MEUR. Inventory turn improved and the composition was\nhealthy.\n\nIn January–June net cash used in investing activities was 1.6 MEUR (0.7).\nCapital expenditure was 1.6 MEUR (1.8) and disposals 0.1 MEUR (1.1).\nExpenditure consisted mainly of maintenance of manufacturing capacity and\ninvestments in new products. Prior year disposals include proceeds from the\nsale of real estate in Finland.\n\nLiquidity position of the Group was good. Undrawn committed long-term credit\nfacilities amounted to 21.3 MEUR. Commercial papers sold under the commercial\npaper program amounted to 11.0 MEUR (14.0) at the end of the reporting period.\nGearing ratio increased and equity-to-assets ratio decreased from last year.\n\nThe Group’s 91.5 MEUR senior secured term and revolving credit facilities\nagreement includes financial covenants based on the net debt to EBITDA ratio\n(“leverage ratio”), the ratio of net debt to consolidated equity and the\nminimum liquidity. The financial leverage ratio covenant level for periods\nQ4/2025 to Q2/2026 is 3.80, for periods Q3/2026 to Q4/2027 3.50 and from\nQ1/2028 onwards 3.20. Covenants are regularly tested, either quarterly or on\nthe last day of each month. The risk of breaching the covenants would trigger\nnegotiations between the Group and lending banks to resolve the potential\ncovenant breach, and to agree on actions to rectify the situation. In the\nunlikely event of unresolved covenant breach, the lending banks would have the\nright to call all or any part of the loans and related interest.\n\nOn Q1/2026 and Q2/2026 testing dates, the leverage ratio landed at 3.59 and\n2.28. Calculation of the covenants include customary adjustments mainly\nrelated to items affecting comparability and asset disposals, and therefore\ndeviate from the reported figures elsewhere in this report. The Group is\ncurrently compliant with all financial covenants and expects to comply with\nfuture bank requirements as well. The Group’s liquidity position remains\ngood, and cash and cash equivalents amounted to 28.5 MEUR at June 30, 2026.\n\nThe Group equity includes a hybrid loan of 25.0 MEUR issued in November 2025.\nThe accumulated non-recognized interest on hybrid bond were 1.3 MEUR.\n\nKey figures\n\n                                             Q2     Q2     H1     H1     FY     \n MEUR                                        2026   2025   2026   2025   2025   \n Cash flow from operations                   20.5   15.5   16.7   6.2    5.5    \n Inventory at the end of the period          80.1   82.2   80.1   82.2   84.4   \n Net cash used in investing activities       -0.7   0.1    -1.6   -0.7   -2.7   \n Net interest-bearing debt at end of period  60.1   58.6   60.1   58.6   72.9   \n Gearing %                                   41.0%  39.2%  41.0%  39.2%  53.5%  \n Equity-to-assets ratio at end of period, %  50.5%  52.3%  50.5%  52.3%  49.3%  \n\nDefinitions and reconciliation of key figures are presented in the financial\nsection of the release. \n\nProduct Development \nRapala turns 90 years in 2026, but is not resting on its laurels. On the\ncontrary: Innovation has again been driving the sales during the first half of\n2026. Consumer adoption of the 2026 hero lure Claptail has been exceptionally\ngood and led to the launch of two new sizes of Claptail, 75 and 90 at ICAST\n2026. Topwater fishing continues to be a driving force in new freshwater\nhardbaits.\n\nOther important new hardbaits that have been driving Rapala’s sales include\nthe Harvest Shad and Snare crankbaits that are catering to the important\n9,99€ retail category. Rapala also introduced Precision Xtreme Air Boss\njerkbaits, which represent the next generation of highly technical wobblers\nspecifically developed for European predator fishing.\n\nRapala softbaits continued to grow in all key markets. Crushcity range\nexpanded with Mooch Minnow that is specifically developed for forward facing\nsonar applications. The combination of Rapala Predator softbaits and VMC\nMustache heads continued as the driver of European softbait business.\n\nOn the accessories side Rapala tools have been sold in new packaging designed\nto reduce plastic use while strengthening the brand image. Following a\nsuccessful early launch of the CountDown and Hydro bags in Southern Europe and\nAustralia in Q4 2025, both product lines are now available across South\nAmerica, Northern Europe and APAC, where they are delivering strong results\nand consistent turnover. Together, these launches are contributing to the\ncontinued rejuvenation of Rapala Accessories.\n\nThe first introductions of 2027 new items to retail chains have commenced in\nQ2. The reception has been very promising, and all the new exciting items are\npresented to consumers from July’s ICAST show followed by AFTA in Australia\nin August.\n\nAt ICAST 2026, 13 Fishing introduced a significantly expanded lineup of rods,\nreels, and combos designed to reinforce the brand’s position as an\ninnovation and performance driven competitor. The launches strengthened the\nassortment across multiple price points and product categories, giving anglers\nmore complete, purpose-built solutions while creating greater opportunities\nfor retail placement and cross-category selling. Collectively, the\nintroductions represent an important step in broadening the brand’s consumer\nreach, increasing its relevance at retail, and building a stronger platform\nfor future growth. ICAST 2026 saw 4 wins for Rapala VMC with Best of Show for\nFreshwater Soft Lure with the sea urchin style C.E.O. bait, for Saltwater Soft\nLure with the shrimp style Imposter, for Best Fishing Accessory with the High\nCapacity Line Remover and Best Novelty or Wellness with the Bald Eagle Giant\nOriginal Floater underlining the industry recognized innovation and brand\nstrength of Rapala.\n\nSufix Calibr8 is a highly anticipated 8-carrier braided line introduced at\nICAST 2026, designed to eliminate guesswork for anglers by tailoring the\nline's diameter and weave specifically to individual fishing techniques.\nLighter pound tests feature a thinner, smoother weave for optimal performance\non spinning reels. Heavier tests feature a slightly tighter weave and pick\ncount to add body and strength for baitcasting and heavy-cover fishing.\n\nOkuma's first half of 2026 was marked by the global launch of the Zyros\nspinning reel, with the European predator segment among its primary markets.\nBuilt around Okuma's C-40X™ long-strand carbon fiber construction, Zyros\nweighs just 199 g in the 2500 size at a €100 retail price. Consumer response\nwas immediate: within two months, Zyros had become Okuma's third best-selling\nreel. In spinning rods, the newly introduced G-Control freshwater series and\nCeymar SW range have been well received.\n\nPersonnel and Organization\nAverage number of personnel was relatively stable at 1 418 (1 424) for the\nfirst half of the year. At the end of June, the number of personnel was 1 442\n(1 451).\n\nShort-term Outlook and Risks\nReplenishment demand remained robust in Q2/2026 in the core North American\nmarket, following strong initial fill deliveries in Q1/2026 for the open-water\nseason. This has compensated for softer demand in Europe, where drought\nconditions and weaker consumer spending have weighed on market activity. While\nmacroeconomic uncertainty persists amid geopolitical instability and tariff\nvolatility, the strong first-half 2026 performance, healthy inventory levels\nin the winter fishing category in North America, and a robust innovation\npipeline reinforce the confidence in Rapala VMC's recovery trajectory and\nunderpin the Group’s improved full-year outlook.\n\nOur guidance reflects current market conditions but remains subject to\npotential trade-related disruptions, including tariffs and regulatory changes,\nwhich may impact demand and cost structures.\n\nConsequently, the Group revised the outlook (stock exchange release August 14,\n2026) and expects 2026 full year comparable operating profit (excluding\nmark-to-market valuations of operative currency derivatives and other items\naffecting comparability) to be in the range of 12 to 14 MEUR (2025: 8.4 MEUR).\n\nShort-term risks and uncertainties are described in more detail at the end of\nthis report.\n\nAnnual General Meeting\nThe AGM approved the Board of Director’s proposal, according to which no\ndividend be paid based on the adopted balance sheet for the financial year\n2025. The AGM approved that the Board of Directors consists of six members.\nEmmanuel Viellard, Julia Aubertin, Vesa Luhtanen, Alexander Rosenlew, Pascal\nLebard and Johan Berg were re-elected as members of the Board of Directors. A\nseparate stock exchange release on the decisions of the AGM has been given,\nand up to date information on the Board’s authorizations and other decisions\nof the AGM are available also on the corporate website.\n\nAuthorised Public Accountants Firm Deloitte Ltd was elected as the Company’s\nauditor. Deloitte Ltd will also carry out the assurance of the company’s\nsustainability reporting for the financial year 2026 in accordance with the\ntransitional provision of the act amending the Limited Liability Companies Act\n(1252/2023) and will be imbursed for this task as per its invoice approved by\nthe company.\n\n\n\nHelsinki, August 20, 2026\n\nBoard of Directors of Rapala VMC Corporation\n\n\n\nFor further information, please contact:\n\nCyrille Viellard, President and Chief Executive Officer, +358 9 7562 540\n\nMiikka Tarna, Chief Financial Officer, +358 9 7562 540\n\nTuomo Leino, Investor Relations, +358 9 7562 540\n\nAn audiocast on the first half year result will be arranged on Friday August\n21, 2026, at 10:00 a.m EEST.\n\nPlease join the audiocast by registering using the following\nlink: https://events.inderes.com/rapala/2026-h1-results\n\nFinancial information and recording of the audiocast will be available\nat www.rapalavmc.com\n\nAbout Rapala VMC Corporation\nRapala VMC Group is the world’s leading fishing tackle company with a\nlargest distribution network in the industry.   The Group is a global market\nleader in fishing lures, treble hooks and fishing related knives and tools.\nThe main manufacturing facilities are in Finland, France, Estonia, and the UK.\nThe Group’s brand portfolio includes leading brands in the industry such as\nRapala, VMC, Sufix, 13Fishing as well as Okuma in Europe. The Group, with net\nsales of EUR 228 million in 2025, employs some 1 400 people in approximately\n40 countries. Rapala VMC Corporation’s share is listed and traded on the\nNasdaq Helsinki stock exchange since 1998.\n\nwww.rapalavmc.com\n\nAttachment\n*     RAPALA VMC HALF YEAR REPORT H1 2026\n(https://ml-eu.globenewswire.com/Resource/Download/dfd3f260-f3d3-4cf3-b49c-2b75875012a8)"},"type":"article","timestamp":"2026-08-20T11:10:00.275391946Z","server_sent_at_ms":1787224200275},"received_at":"2026-08-20T11:10:00.426Z","source_url":null},"analysis":{"id":"112740","press_release_id":"123761","analysis_json":{"industry":{"label":"Leisure Products","sector":"Consumer Discretionary"},"redFlags":["No dividend paid for financial year 2025","European demand softened by drought conditions and weaker consumer spending"],"eventType":"earnings","narrative":"Rapala VMC reported H1 2026 net sales of 134.8 MEUR, up 7% year-over-year, while comparable operating profit surged 57% to 13.5 MEUR.\n\nDriven by robust replenishment demand in North America, EPS reached 0.19 EUR compared to 0.02 EUR in the prior year, and operating cash flow improved to 16.7 MEUR.\n\nCiting strong first-half performance and a healthy innovation pipeline, the company raised its full-year outlook for comparable operating profit to a range of 12 to 14 MEUR.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Strong earnings beat and guidance raise as North American recovery offsets European drought weakness."},"keyFigures":{"eps":"0.19 EUR","revenue":"134.8 MEUR","guidance":"FY 2026 comparable operating profit 12-14 MEUR (2025: 8.4 MEUR)","revenueYoy":"7%","customDimensions":{"inventory":"80.1 MEUR","net_profit":"8.5 MEUR","cash_flow_from_operations":"16.7 MEUR","comparable_operating_profit":"13.5 MEUR"}},"quotedText":"Replenishment demand has further remained robust in Q2/2026 in the Company’s core North American market, following strong initial fill deliveries in Q1/2026 for the open-water season.","namedEntities":{"people":[{"name":"Cyrille Viellard","role":"President and CEO"},{"name":"Miikka Tarna","role":"CFO"},{"name":"Tuomo Leino","role":"Investor Relations"}],"products":["Claptail","Harvest Shad","Snare","Precision Xtreme Air Boss","Crushcity","Mooch Minnow","C.E.O. bait","Imposter","High Capacity Line Remover","Bald Eagle Giant Original Floater","Sufix Calibr8","Zyros","G-Control","Ceymar SW"],"companies":[{"name":"Rapala VMC Corporation","ticker":"RAP1V"},{"name":"Deloitte Ltd","relationship":"auditor"}],"dollarAmounts":[{"amount":"134.8 MEUR","context":"H1 2026 Net Sales"},{"amount":"13.5 MEUR","context":"H1 2026 Comparable Operating Profit"},{"amount":"0.19 EUR","context":"H1 2026 Earnings Per Share"},{"amount":"12-14 MEUR","context":"FY 2026 Comparable Operating Profit Outlook"}]},"materialImpact":{"score":4,"reasoning":"H1 operating profit nearly doubled to 13.5 MEUR (from 8.6 MEUR) and EPS surged to 0.19 EUR (from 0.02 EUR). The company also raised its full-year outlook for comparable operating profit to 12-14 MEUR, significantly above the 8.4 MEUR reported in 2025."},"tickerRelevance":{"others":[],"primary":"RAP1V"},"globalImportance":25,"audienceRelevance":15,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"small-mid-cap","eventGravity":"beat-and-raise","sectorWeight":"consumer-discretionary","householdBrandBoost":0}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Rapala VMC reported H1 2026 net sales of 134.8 MEUR, up 7% year-over-year, while comparable operating profit surged 57% to 13.5 MEUR.\n\nDriven by robust replenishment demand in North America, EPS reached 0.19 EUR compared to 0.02 EUR in the prior year, and operating cash flow improved to 16.7 MEUR.\n\nCiting strong first-half performance and a healthy innovation pipeline, the company raised its full-year outlook for comparable operating profit to a range of 12 to 14 MEUR.","key_figures":{"eps":"0.19 EUR","revenue":"134.8 MEUR","guidance":"FY 2026 comparable operating profit 12-14 MEUR (2025: 8.4 MEUR)","revenueYoy":"7%","customDimensions":{"inventory":"80.1 MEUR","net_profit":"8.5 MEUR","cash_flow_from_operations":"16.7 MEUR","comparable_operating_profit":"13.5 MEUR"}},"named_entities":{"people":[{"name":"Cyrille Viellard","role":"President and CEO"},{"name":"Miikka Tarna","role":"CFO"},{"name":"Tuomo Leino","role":"Investor Relations"}],"products":["Claptail","Harvest Shad","Snare","Precision Xtreme Air Boss","Crushcity","Mooch Minnow","C.E.O. bait","Imposter","High Capacity Line Remover","Bald Eagle Giant Original Floater","Sufix Calibr8","Zyros","G-Control","Ceymar SW"],"companies":[{"name":"Rapala VMC Corporation","ticker":"RAP1V"},{"name":"Deloitte Ltd","relationship":"auditor"}],"dollarAmounts":[{"amount":"134.8 MEUR","context":"H1 2026 Net Sales"},{"amount":"13.5 MEUR","context":"H1 2026 Comparable Operating Profit"},{"amount":"0.19 EUR","context":"H1 2026 Earnings Per Share"},{"amount":"12-14 MEUR","context":"FY 2026 Comparable Operating Profit Outlook"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-20T11:47:34.143Z","global_importance":25,"audience_relevance":15,"importance_components":{"tickerTier":"small-mid-cap","eventGravity":"beat-and-raise","sectorWeight":"consumer-discretionary","householdBrandBoost":0}},"durationMs":null,"modelName":"glm-4.7"}}