2024-04-28 04:11:08 ET
Mips AB (publ) (MPZAF)
Q1 2024 Earnings Conference Call
April 25, 2024, 4:00 AM ET
Company Participants
Max Strandwitz - Chief Executive Officer
Karin Rosenthal - Chief Financial Officer
Conference Call Participants
Adela Dashian - Jefferies
Emanuel Jansson - Danske Bank
Gustav Hageus - SEB
Daniel Thorsson - ABG Sundal Collier
Carl Deijenberg - Carnegie
Presentation
Max Strandwitz
Good morning, everyone. My name is Max Strandwitz and I am the CEO of Mips. With me today, I also have Karin Rosenthal, who is our CFO and we will walk you through the Q1 quarterly report.
And if we start with the key highlights of the quarter. We did see a stable start of the year, but actually a decrease of 6%. And of course, that decrease is fully explained by a strong prior year comparator in snow. For the ones that are following us knows that we were increasing with 60% in Q1 2023 and, of course, we are up against that tough comparator. In terms of longer term, nothing has happened in snow that makes us worried. And of course, if we had a very strong comparator in Q1, we are up against a much softer comparator in Q2, with minus 40%. And I believe that when we are exiting Q2, we are back at growth again in snow. So nothing really that has changed and more of a phasing effect.
And then why did we say stable quarter? That's because we saw good development in the other categories with continued good performance in bike and we are now happy that we have seen two quarters with consecutive growth in bike. And also, even though it was only 3%, Moto was back at growth again one quarter earlier than we anticipated ourselves. So, of course, really pleased about that. We also see good momentum in terms of projects of implementing new helmets with Mips. Of course, that's a really important indicator for us if we are still gaining market share, if people will still increase the penetration with Mips in their assortment. We saw an increase of 21% in the quarter, which is, of course, also a very robust indicator that we are going in the right direction. And of course, we don't see any reason to change our previous assumption of recovery in 2024, and we remain confident in our long-term strategy and our financial target.
In Sport, like I said, we saw growth in bike, tough comparators in snow. Sport was now down with 9%, and of course, that's fully explained by snow. We did see growth in both bike and also equestrian, which continue to develop well in the quarter. We continue to see positive order momentum in bike and our previous assumption of recovery in bike remains. We consider the performance in snow, like I said, to me, more of a phasing-related situation and expect to be back at normal performance when we are exiting in Q2....
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Mips AB (publ) (MPZAF) Q1 2024 Earnings Call Transcript