Press Release
To accelerate its transformation process, Rapala VMC Corporation has today announced its new Global Management Team. The new management team, together with several other key managers all over the world, will focus on implementing the new strategic plan for 2024-26. An important part of the implementation process are clear and measurable projects that focus on improving profitability and working capital management.
Rapala believes the normalization of the over-demand situation created by the coronavirus is nearing completion and believes the normalization of the market will benefit Rapala. The company is closely monitoring market trends and expects that the recovery will open up opportunities for new growth plans.
Rapala's success is based not only on strong globally renowned brands, but also on skilled, professional and committed personnel. The company continuously invests in the development of its personnel and the improvement of working conditions to ensure a high level of competence and teamwork. This human-centric approach is an integral part of Rapala's business philosophy and competitive advantage on a global level.
To strengthen customer relationships, Rapala will be in constant interaction with its customers and is ready to adapt to changing market conditions. Rapala's goal is to be the best partner for its customers.
Rapala has successfully launched several new, interesting products for the 2024 season. The most notable of these is the Rapala CrushCity, a collection of very popular soft plastic lures. Several retail chains have reported an excellent start to consumer sales, and CrushCity has been the best-selling product in its category. This further strengthens the Rapala brand in its most important target market in North America. The soft plastic market is larger than the hard bait market already dominated by Rapala. Another positive message from the market is fishing participation to climb above the pre-COVID levels.
Rapala places a special focus on strong positive cash flow and accelerates inventory turnover with its "Together - One More Turn" strategy. The "One More Turn" strategy offers the flexibility to react quickly to market changes, while optimizing the financial performance of the business.
Key Performance Indicators (KPIs) are essential for monitoring business and evaluating success. All Rapala KPIs steer operations in the same direction in terms of financial performance, customer satisfaction and process efficiency, among other things.
Operational improvement measures include increasing efficiency in production, optimizing logistics, improving process efficiency, and controlling costs. Digitalization and the use of new global information systems and technology also play an important role in improving Rapala's business.
- Prioritization: Rapala aims to identify critical business areas that directly affect profitability and market position. This is a top priority.
- Customer focus: We focus on areas that improve the customer experience and meet market needs. Satisfied customers support long-term success. Rapala understands the needs of the target market and the competitive situation.
- Efficiency and cost awareness: Rapala is constantly looking for ways to streamline existing processes and reduce unnecessary costs. Resources will not be too diversified.
- Growth potential: Rapala assesses the growth potential of the investment areas invests in product and market areas that bring long-term value. Rapala has ample opportunity to expand in our existing markets and thoughtfully increase our presence in new markets. Primarily, however, Rapala is developing its existing business areas.
- Employee engagement: Rapala will engage its employees in decision-making and listen to their ideas to improve efficiency. Committed personnel are a significant resource.
- Rapala will consult with experts when needed, such as financial advisors or industry experts, to gain additional perspective.
- This balanced approach helps ensure that resources are allocated in the best possible way to improve business profitability while maintaining a strong market position.
Rapala is investing heavily in the North American market in its operational plan for 2024. The investment is based on careful market research and knowledge, which guides strategic decision-making to systematically increase market share. The company strives to identify opportunities in the region and allocate its resources optimally to meet demand. This focus strengthens Rapala's position and competitiveness in its key market area.
In the European market, Rapala places a strong emphasis on restoring and growing profitability and market share. This requires accurate market analysis, competitor monitoring and product portfolio optimization to meet the needs of customers in the region. In addition, effective marketing campaigns and strengthening customer relationships are key elements in improving competitiveness.
In the Asian, South American and African markets, Rapala ensures the demand of its products in the market, leveraging the appeal of its strong brands. The strategy is a localized approach, where products may also be tailored to the specific needs of each market. This will strengthen brand awareness and attractiveness, while promoting Rapala's position and growth opportunities in these areas.
Rapala recently brought the negotiations on its new financial package to a favourable conclusion. Rapala will use its strong financial position for strategic investments, product development, marketing and increasing overall operational efficiency.
Rapala VMC Corporation aims to increase shareholder value. Rapala keeps investors informed of the company's plans, achievements, and future prospects. Rapala will pay more attention to corporate responsibility and ethical practices. This is important to ensure long-term success.
Rapala believes that with strict cost control, targeted marketing, personnel training and, especially, further investment in the best customer work on the market, the company will be able to succeed excellently both in the short and especially in the long term.
Rapala VMC Corporation
Lars Ollberg
President and Chief Executive Officer
Additional Information
For additional information, please contact:
Tuomo Leino, Investor Relations
tel. +358 9 7562 540
About Rapala VMC Corporation
Rapala VMC group is the world’s leading fishing tackle company and the global market leader in fishing lures, treble hooks and fishing related knives and tools. The group also has a strong global position in other fishing categories and Rapala VMC’s distribution network is largest in the fishing industry. The main manufacturing facilities are in Finland, France, Estonia, and the UK. Rapala VMC group’s brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Marttiini, Peltonen and 13 Fishing as well as Okuma in Europe. The group, with net sales of EUR 274 million in 2022, employs some 1 500 people in approximately 40 countries. Rapala VMC Corporation’s share is listed and traded on the Nasdaq Helsinki stock exchange since 1998.
www.rapalavmc.com
