The Swedish helmet safety technology provider Mips reported a 41 percent rise in net sales during the fourth quarter, despite supply chain constraints and power restrictions on factories in China. The specialist in “brain protection” said net sales for the three months to Dec. 31 rose to 198 million Swedish kronor (€18.7m) from SEK 140 million a year earlier. On an annual basis, net revenue rose 67 percent to SEK 608m (€57.6m). Organic growth during the fourth quarter was 35 percent and 72 percent for the full year.

Final quarter operating profit rose to SEK 104m (€9.86m) from SEK 76 million a year ago. Full-year profit almost doubled to SEK 326m (€31m), driven by higher sales and offset by increased corporate costs. The operating margin fell to 53 percent from 54 percent during the quarter. For the full year, it rose to 54 percent from 46.

Mips said its safety system was now part of 883 helmet models supplied by 143 customers and supplied to 12.6 million helmets during the year. “Our largest customers have continued to expand their assortment of helmets equipped with Mips solutions which has generated very good growth,” the company said. However, it did take a hit when power restrictions were implemented in China at the end of the third quarter, meaning demand for helmets could not be fully met in terms of manufacturing. “Neither in the fourth quarter nor during the full year did Mips fail to fulfill an order, but the general demand for helmets could not be met, and the helmet factories have not been able to produce at full capacity. This means that global stock levels within the retail trade continue to be low and are expected to remain so at least during the first six months this year,” said CEO Max Strandwitz. “It is difficult to get a view of all the future challenges, but we’re convinced that we will need to manage continued constraints within our supply chain.”

Fourth-quarter sport helmet category income rose to SEK 190m (€18m) from SEK 130 million, driven mainly by bike helmet sales but also snow and riding headwear.

The motorcycle helmet category sales fell 22 percent during the quarter, driven by the postponement of manufacturing as the production of bike helmets was given priority. The category grew 47 percent for the full year, and Mips said demand remains high.

Regionally, Mips’ annual income rose to SEK 409m (€38.7m) in North America and SEK 120m (€11.4m) in Europe, up from SEK 73 million. In its Swedish home market, sales more than trebled to SEK 47m (€4.45m), while in Asia & Australia it was up to SEK 32m (€3m). The company’s revenues are centered on clients in North America and Europe because many helmet manufacturers are located in those regions.