1
ACCOUNTING PRINCIPLES FOR THE CONSOLIDATED ACCOUNTS
Company\u2019s background
Rapala VMC Corporation (\u201ccompany\u201d) is a Finnish public limited liability company organized under the laws of Finland, domiciled in Asikkala and listed on the Nasdaq Helsinki stock exchange since 1998. The parent company Rapala VMC Corporation and its subsidiaries (\u201cthe Group\u201d) operate in some 40 countries and the company is one of the leading fishing tackle companies in the world.
The consolidated financial statements have been prepared for the accounting period of 12 months from January 1 to December 31, 2025. The Board of Directors of the company has approved these financial statements for publication at its meeting on April 8, 2026. Under Fin-land\u2019s Limited Liability Companies Act, shareholders have the option to accept or reject the financial statements in a meeting of shareholders, which will be held after the publication of the financial statements. The meeting has also the option of changing the financial statements.
A copy of the consolidated financial statements is available at the Group\u2019s website www.rapalavmc.com or from M\u00e4kel\u00e4nkatu 87, 00610 Helsinki, Finland.
Basis for preparing the consolidated financial statements
The consolidated financial statements have been prepared in accor-dance with the International Financial Reporting Standards (IFRS), in-cluding IAS and IFRS standards as well as the SIC and IFRIC interpreta-tions in effect on December 31, 2025. The term \u2018IFRS standards\u2019 refers to standards and interpretations which are approved and adopted by the European Union (regulation EY 1606/2002) and thus are in force in the Finnish legislation. The Group has not early adopted any new,
revised or amended standards or interpretations.
The consolidated financial statements have been prepared on a his-torical cost basis, unless otherwise stated.
Financial statements in accordance with the European Single Elec-tronic Format (ESEF) reporting requirements are published in Finnish and English. In accordance with ESEF\u2019s requirements, the primary state-ments and notes to the consolidated financial statements have been tagged with XBRL tags. The ESEF report has been audited.
Application of new and revised standards or interpretations
The Group has applied the following new standards, interpretations, and amendments to existing standards as of 1 January 2025:
- Amendments to IAS 21
The amendments to the standards listed above have not had a material impact on the consolidated financial statements.The adopted new stan-dards and interpretations did not have material impact on the Group\u2019s consolidated financial statements.
IFRS 18 Presentation and Disclosure in Financial Statements, which will be effective as of 1 January 2027, introduces new requirements for the presentation of financial statements and the related notes, and will replace IAS 1 Presentation of Financial Statements. The Group expects the adoption of IFRS 18 to have some impact on the presentation of the primary financial statements and the notes. The Group will apply the new standard from its effective date. Retrospective application is man-datory, and therefore the comparative information for the financial year ending 31 December 2026 will be restated in accordance with IFRS 18.
The Group has presented only material accounting policy information in these annual financial statements and has therefore not repeated all accounting policy information disclosed in the previous year\u2019s financial statements.
Consolidation principles
The consolidated financial statements comprise the financial state-ments of the company and its subsidiaries in which it has control. The control is based either to governing power established through direct or indirect holding of over 50% of the voting rights and/or control estab-lished through other means. The financial statements of the subsidiar-ies are prepared for the same accounting period as the company, using consistent accounting policies. The investments in subsidiaries have been eliminated using the acquisition cost method. All transactions between Group companies as well as assets and liabilities, dividends and unrealized internal margins in inventories and tangible assets have been eliminated in the consolidated financial statements.
Associated companies are companies where the Group holds voting rights of 20\u201350% and/or in which the Group has significant influence, but not control. Associated companies are included in the consolidated financial statements using the equity method. Under the equity method, the Group\u2019s share of the profit or loss is recognized in the consolidated income statement before operating profit.
Foreign currency transactions and translations
Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. Foreign currency transactions are trans-lated into functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date. Non-monetary items denomi-nated in foreign currency, measured at fair value, are translated using the exchange rates at the date when the fair value was determined. Other non-monetary items have been translated into the functional
currency using the exchange rate on the date of the transaction.
The consolidated financial statements are presented in euros, which is the company\u2019s functional and reporting currency. Income statements of subsidiaries, whose functional and reporting currencies is not euro, are translated into the Group reporting currency using the average exchange rate for the year. Their balance sheets are translated using the exchange rate of balance sheet date. All exchange differences arising on the trans-lation are entered in the statement of other comprehensive income and presented in equity. The translation differences arising from the use of the purchase method of accounting and after the date of acquisition as well as fair value changes of loans which are hedges of such investments are recognized in statement of other comprehensive income and presented in equity. On the disposal of a subsidiary, whose functional and reporting currency is not euro, the cumulative translation difference for that entity is recognized in the income statement as part of the gain or loss on the sale.
Segment reporting
The Group is led as a whole and not organized nor managed in inde-pendent divisions. The Group\u2019s CODM is Group CEO together with the Board of Directors. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. Rapala VMC as a whole is considered as a single operating segment and a cash generating unit. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level.
Impairments of tangible and intangible assets
The carrying amounts of tangible and intangible assets are reviewed at each balance sheet date to determine whether there is any indi-cation of impairment. If indication exists, the recoverable amount is
measured. Indications of potential need for impairment may be for example changes in market conditions and sales prices, decisions on significant restructurings or change in profitability.
Goodwill, intangible assets with indefinite useful lives and unfinished intangible assets are in all cases tested annually. For the purposes of as-sessing impairment, assets are grouped at the lowest cash generating unit level for which there are separately identifiable, mainly independent, cash inflows and outflows.
An impairment loss is the amount by which the carrying amount of the assets exceeds the recoverable amount. The recoverable amount is determined by reference to discounted future net cash flows expected to be generated by the asset. Discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment loss is immediately recognized in the income statement.
Impairment losses attributable to a cash-generating unit are used to deducting first the goodwill allocated to the cash-generating unit and, thereafter, the other assets of the unit on an equal basis. The useful life of the asset to be depreciated is reassessed in connection with the recognition of the impairment loss. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the recoverable amount. However, the reversal must not cause that the adjusted value is higher than the car-rying amount that would have been determined if no impairment loss had been recognized in prior years. Impairment losses recognized for goodwill are not reversed.
Operating profit
The IAS 1 (Presentation of Financial Statements) standard does not define operating profit. The Group has defined it as follows: Operating
profit is the net amount arising from adding other operating income and share of results in associates and joint ventures to net sales, de-ducting cost of sales corrected for changes in inventories and cost of production for own use, deducting costs related to employee benefits, depreciation and possible impairments as well as other operating ex-penses. Foreign exchange differences and changes in the fair value of derivative financial instruments are included in operating profit in case they originate from operative business items; otherwise they are booked in financial income and expenses.
Cash flow statement
Cash and cash equivalents presented in the cash flow statement com-prise cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Cash generated from operating activities has been reported using the indirect method. All income taxes paid during the financial year are presented in Net cash generated from operating activities, unless they can be particularly allocated to net cash from (used in) investing or financing activities. Unrealized exchange gains and losses from cash and cash equivalents denominated in foreign currencies are presented on a separate row before cash and cash equivalents at the end of period, separate from cash generated from (used in) operating, investing and financing activities.
Waste electrical and electronic equipment
The Group is a distributor of electrical equipment that falls under the EU Directive on Waste Electrical and Electronic Equipment. Expected costs are recognized as part of other operating expenses and as a current non-interest-bearing payable.
Comparable operating profit and items affecting comparability
In order to reflect the underlying business performance and to enhance comparability between financial periods, the Group presents alternative performance measures. Comparable operating profit is operating profit excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability, which include material restruc-turing costs, impairments, gains and losses on business combinations and disposals, insurance compensations and other non-operational items. Alternative performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
Critical accounting estimates and judgments
The preparation of the consolidated financial statements in accordance with IFRS requires management to make certain estimates and assump-tions that affect the amounts recognized in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. In addition, judgment has to be exercised in applying the accounting principles of the financial statements. Management\u2019s estimates and assumptions are based on historical experience and
plausible future scenarios, which are continually evaluated. Possible changes in estimates and assumptions are recognized in the account-ing period during which estimates and assumptions were fixed and in all subsequent accounting periods.
The key assumptions concerning the future and other key sources of uncertainty related to estimations at the balance sheet date, that have significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next accounting period, are discussed below.
Impairment testing
The carrying amounts of tangible and intangible assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. Goodwill, intangible assets with indefinite useful lives and unfinished tangible assets are in all cases tested annually. For the purposes of assessing impairment, assets are grouped at the lowest cash generating unit level for which there are separately identifiable, mainly independent, cash inflows and outflows. An impairment loss is the amount by which the carrying amount of the assets exceeds the recoverable amount. The recoverable amount is determined by refer-ence to discounted future net cash flows expected to be generated by the asset. These calculations require the use of estimates.
Rounding of figures
The consolidated financial statements are presented in millions of eu-ros. All figures in these accounts have been rounded. Consequently, the sum of individual figures can deviate from the presented sum figure. Key figures have been calculated using exact figures.
In the financial statements, EUR 0.0 million means the figure is less than EUR 50 000. If the amount is EUR 0, the cell is left empty.
Company\u2019s background
Rapala VMC Corporation (\u201ccompany\u201d) is a Finnish public limited liability company organized under the laws of Finland, domiciled in Asikkala and listed on the Nasdaq Helsinki stock exchange since 1998. The parent company Rapala VMC Corporation and its subsidiaries (\u201cthe Group\u201d) operate in some 40 countries and the company is one of the leading fishing tackle companies in the world.
The consolidated financial statements have been prepared for the accounting period of 12 months from January 1 to December 31, 2025. The Board of Directors of the company has approved these financial statements for publication at its meeting on April 8, 2026. Under Fin-land\u2019s Limited Liability Companies Act, shareholders have the option to accept or reject the financial statements in a meeting of shareholders, which will be held after the publication of the financial statements. The meeting has also the option of changing the financial statements.
A copy of the consolidated financial statements is available at the Group\u2019s website www.rapalavmc.com or from M\u00e4kel\u00e4nkatu 87, 00610 Helsinki, Finland.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__5": { "value": "Rapala VMC Corporation ", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__13": { "value": "Rapala VMC Corporation ", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__7": { "value": "public limited liability company ", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__6": { "value": "Finland", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__8": { "value": "Finland", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__10": { "value": "Finland", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__12": { "value": "Rapala VMC Corporation ", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__11": { "value": "fishing tackle ", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__16": { "value": "The Board of Directors of the company has approved these financial statements for publication at its meeting on April 8, 2026. ", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__9": { "value": "M\u00e4kel\u00e4nkatu 87, 00610 Helsinki, Finland", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__17": { "value": "Basis for preparing the consolidated financial statements
The consolidated financial statements have been prepared in accor-dance with the International Financial Reporting Standards (IFRS), in-cluding IAS and IFRS standards as well as the SIC and IFRIC interpreta-tions in effect on December 31, 2025. The term \u2018IFRS standards\u2019 refers to standards and interpretations which are approved and adopted by the European Union (regulation EY 1606/2002) and thus are in force in the Finnish legislation. The Group has not early adopted any new,
revised or amended standards or interpretations.
The consolidated financial statements have been prepared on a his-torical cost basis, unless otherwise stated.
Financial statements in accordance with the European Single Elec-tronic Format (ESEF) reporting requirements are published in Finnish and English. In accordance with ESEF\u2019s requirements, the primary state-ments and notes to the consolidated financial statements have been tagged with XBRL tags. The ESEF report has been audited.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__18": { "value": "Basis for preparing the consolidated financial statements
The consolidated financial statements have been prepared in accor-dance with the International Financial Reporting Standards (IFRS), in-cluding IAS and IFRS standards as well as the SIC and IFRIC interpreta-tions in effect on December 31, 2025. The term \u2018IFRS standards\u2019 refers to standards and interpretations which are approved and adopted by the European Union (regulation EY 1606/2002) and thus are in force in the Finnish legislation. The Group has not early adopted any new,
revised or amended standards or interpretations.
The consolidated financial statements have been prepared on a his-torical cost basis, unless otherwise stated.
Financial statements in accordance with the European Single Elec-tronic Format (ESEF) reporting requirements are published in Finnish and English. In accordance with ESEF\u2019s requirements, the primary state-ments and notes to the consolidated financial statements have been tagged with XBRL tags. The ESEF report has been audited.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__19-1": { "value": "Basis for preparing the consolidated financial statements
The consolidated financial statements have been prepared in accor-dance with the International Financial Reporting Standards (IFRS), in-cluding IAS and IFRS standards as well as the SIC and IFRIC interpreta-tions in effect on December 31, 2025. The term \u2018IFRS standards\u2019 refers to standards and interpretations which are approved and adopted by the European Union (regulation EY 1606/2002) and thus are in force in the Finnish legislation. The Group has not early adopted any new,
revised or amended standards or interpretations.
The consolidated financial statements have been prepared on a his-torical cost basis, unless otherwise stated.
Financial statements in accordance with the European Single Elec-tronic Format (ESEF) reporting requirements are published in Finnish and English. In accordance with ESEF\u2019s requirements, the primary state-ments and notes to the consolidated financial statements have been tagged with XBRL tags. The ESEF report has been audited.
Application of new and revised standards or interpretations
The Group has applied the following new standards, interpretations, and amendments to existing standards as of 1 January 2025:
- Amendments to IAS 21
The amendments to the standards listed above have not had a material impact on the consolidated financial statements.The adopted new stan-dards and interpretations did not have material impact on the Group\u2019s consolidated financial statements.
IFRS 18 Presentation and Disclosure in Financial Statements, which will be effective as of 1 January 2027, introduces new requirements for the presentation of financial statements and the related notes, and will replace IAS 1 Presentation of Financial Statements. The Group expects the adoption of IFRS 18 to have some impact on the presentation of the primary financial statements and the notes. The Group will apply the new standard from its effective date. Retrospective application is man-datory, and therefore the comparative information for the financial year ending 31 December 2026 will be restated in accordance with IFRS 18.
The Group has presented only material accounting policy information in these annual financial statements and has therefore not repeated all accounting policy information disclosed in the previous year\u2019s financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__20-1": { "value": "Application of new and revised standards or interpretations
The Group has applied the following new standards, interpretations, and amendments to existing standards as of 1 January 2025:
- Amendments to IAS 21
The amendments to the standards listed above have not had a material impact on the consolidated financial statements.The adopted new stan-dards and interpretations did not have material impact on the Group\u2019s consolidated financial statements.
IFRS 18 Presentation and Disclosure in Financial Statements, which will be effective as of 1 January 2027, introduces new requirements for the presentation of financial statements and the related notes, and will replace IAS 1 Presentation of Financial Statements. The Group expects the adoption of IFRS 18 to have some impact on the presentation of the primary financial statements and the notes. The Group will apply the new standard from its effective date. Retrospective application is man-datory, and therefore the comparative information for the financial year ending 31 December 2026 will be restated in accordance with IFRS 18.
The Group has presented only material accounting policy information in these annual financial statements and has therefore not repeated all accounting policy information disclosed in the previous year\u2019s financial statements.
Consolidation principles
The consolidated financial statements comprise the financial state-ments of the company and its subsidiaries in which it has control. The control is based either to governing power established through direct or indirect holding of over 50% of the voting rights and/or control estab-lished through other means. The financial statements of the subsidiar-ies are prepared for the same accounting period as the company, using consistent accounting policies. The investments in subsidiaries have been eliminated using the acquisition cost method. All transactions between Group companies as well as assets and liabilities, dividends and unrealized internal margins in inventories and tangible assets have been eliminated in the consolidated financial statements.
Associated companies are companies where the Group holds voting rights of 20\u201350% and/or in which the Group has significant influence, but not control. Associated companies are included in the consolidated financial statements using the equity method. Under the equity method, the Group\u2019s share of the profit or loss is recognized in the consolidated income statement before operating profit.
", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__22": { "value": "Application of new and revised standards or interpretations
The Group has applied the following new standards, interpretations, and amendments to existing standards as of 1 January 2025:
- Amendments to IAS 21
The amendments to the standards listed above have not had a material impact on the consolidated financial statements.The adopted new stan-dards and interpretations did not have material impact on the Group\u2019s consolidated financial statements.
IFRS 18 Presentation and Disclosure in Financial Statements, which will be effective as of 1 January 2027, introduces new requirements for the presentation of financial statements and the related notes, and will replace IAS 1 Presentation of Financial Statements. The Group expects the adoption of IFRS 18 to have some impact on the presentation of the primary financial statements and the notes. The Group will apply the new standard from its effective date. Retrospective application is man-datory, and therefore the comparative information for the financial year ending 31 December 2026 will be restated in accordance with IFRS 18.
The Group has presented only material accounting policy information in these annual financial statements and has therefore not repeated all accounting policy information disclosed in the previous year\u2019s financial statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__23": { "value": "Consolidation principles
The consolidated financial statements comprise the financial state-ments of the company and its subsidiaries in which it has control. The control is based either to governing power established through direct or indirect holding of over 50% of the voting rights and/or control estab-lished through other means. The financial statements of the subsidiar-ies are prepared for the same accounting period as the company, using consistent accounting policies. The investments in subsidiaries have been eliminated using the acquisition cost method. All transactions between Group companies as well as assets and liabilities, dividends and unrealized internal margins in inventories and tangible assets have been eliminated in the consolidated financial statements.
Associated companies are companies where the Group holds voting rights of 20\u201350% and/or in which the Group has significant influence, but not control. Associated companies are included in the consolidated financial statements using the equity method. Under the equity method, the Group\u2019s share of the profit or loss is recognized in the consolidated income statement before operating profit.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__24-1": { "value": "Consolidation principles
The consolidated financial statements comprise the financial state-ments of the company and its subsidiaries in which it has control. The control is based either to governing power established through direct or indirect holding of over 50% of the voting rights and/or control estab-lished through other means. The financial statements of the subsidiar-ies are prepared for the same accounting period as the company, using consistent accounting policies. The investments in subsidiaries have been eliminated using the acquisition cost method. All transactions between Group companies as well as assets and liabilities, dividends and unrealized internal margins in inventories and tangible assets have been eliminated in the consolidated financial statements.
Associated companies are companies where the Group holds voting rights of 20\u201350% and/or in which the Group has significant influence, but not control. Associated companies are included in the consolidated financial statements using the equity method. Under the equity method, the Group\u2019s share of the profit or loss is recognized in the consolidated income statement before operating profit.
13
INVESTMENTS IN ASSOCIATES
The Group has a 33.3% interest in associate Lanimo O\u00fc, an unlisted company domiciled in Estonia. Its main activity is producing leather-haberdashery. The carrying amount does not include goodwill or impair-ments. Lanimo O\u00fc\u2019s figures are based on the information for the period ending on September 30, due to differences in reporting time schedule.
Associated companies are consolidated according to the equity method.
EUR million | 2025 | 2024 |
Acquisition cost Jan. 1 | 0.0 | 0.0 |
Share of profit/loss | 0.0 | 0.0 |
Translation differences | 0.0 | 0.0 |
Acquisition cost Dec. 31 | 0.0 | 0.0 |
INFORMATION ON ASSOCIATES
Lanimo O\u00fc | ||
EUR Million | 2025 | 2024 |
Net sales | 0.2 | 0.2 |
Purchases and other expenses | -0.2 | -0.2 |
Depreciation | 0.0 | 0.0 |
Interest income and expenses | 0.0 | 0.0 |
Net profit for the period | 0.0 | 0.0 |
Non-current assets | 0.0 | 0.0 |
Current assets | 0.1 | 0.1 |
Of which cash and cash equivalents | 0.0 | 0.0 |
Non-current liabilities | 0.0 | 0.0 |
Of which financial liabilities | 0.0 | 0.0 |
Current liabilities | 0.0 | 0.0 |
Net assets of associate | 0.0 | 0.0 |
Net assets belonging to Rapala Group | 0.0 | 0.0 |
Consolidation principles
The consolidated financial statements comprise the financial state-ments of the company and its subsidiaries in which it has control. The control is based either to governing power established through direct or indirect holding of over 50% of the voting rights and/or control estab-lished through other means. The financial statements of the subsidiar-ies are prepared for the same accounting period as the company, using consistent accounting policies. The investments in subsidiaries have been eliminated using the acquisition cost method. All transactions between Group companies as well as assets and liabilities, dividends and unrealized internal margins in inventories and tangible assets have been eliminated in the consolidated financial statements.
Associated companies are companies where the Group holds voting rights of 20\u201350% and/or in which the Group has significant influence, but not control. Associated companies are included in the consolidated financial statements using the equity method. Under the equity method, the Group\u2019s share of the profit or loss is recognized in the consolidated income statement before operating profit.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__26": { "value": "Consolidation principles
The consolidated financial statements comprise the financial state-ments of the company and its subsidiaries in which it has control. The control is based either to governing power established through direct or indirect holding of over 50% of the voting rights and/or control estab-lished through other means. The financial statements of the subsidiar-ies are prepared for the same accounting period as the company, using consistent accounting policies. The investments in subsidiaries have been eliminated using the acquisition cost method. All transactions between Group companies as well as assets and liabilities, dividends and unrealized internal margins in inventories and tangible assets have been eliminated in the consolidated financial statements.
Associated companies are companies where the Group holds voting rights of 20\u201350% and/or in which the Group has significant influence, but not control. Associated companies are included in the consolidated financial statements using the equity method. Under the equity method, the Group\u2019s share of the profit or loss is recognized in the consolidated income statement before operating profit.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__28": { "value": "Foreign currency transactions and translations
Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. Foreign currency transactions are trans-lated into functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date. Non-monetary items denomi-nated in foreign currency, measured at fair value, are translated using the exchange rates at the date when the fair value was determined. Other non-monetary items have been translated into the functional
currency using the exchange rate on the date of the transaction.
The consolidated financial statements are presented in euros, which is the company\u2019s functional and reporting currency. Income statements of subsidiaries, whose functional and reporting currencies is not euro, are translated into the Group reporting currency using the average exchange rate for the year. Their balance sheets are translated using the exchange rate of balance sheet date. All exchange differences arising on the trans-lation are entered in the statement of other comprehensive income and presented in equity. The translation differences arising from the use of the purchase method of accounting and after the date of acquisition as well as fair value changes of loans which are hedges of such investments are recognized in statement of other comprehensive income and presented in equity. On the disposal of a subsidiary, whose functional and reporting currency is not euro, the cumulative translation difference for that entity is recognized in the income statement as part of the gain or loss on the sale.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__29": { "value": "Foreign currency transactions and translations
Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. Foreign currency transactions are trans-lated into functional currency using the exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the balance sheet date. Non-monetary items denomi-nated in foreign currency, measured at fair value, are translated using the exchange rates at the date when the fair value was determined. Other non-monetary items have been translated into the functional
currency using the exchange rate on the date of the transaction.
The consolidated financial statements are presented in euros, which is the company\u2019s functional and reporting currency. Income statements of subsidiaries, whose functional and reporting currencies is not euro, are translated into the Group reporting currency using the average exchange rate for the year. Their balance sheets are translated using the exchange rate of balance sheet date. All exchange differences arising on the trans-lation are entered in the statement of other comprehensive income and presented in equity. The translation differences arising from the use of the purchase method of accounting and after the date of acquisition as well as fair value changes of loans which are hedges of such investments are recognized in statement of other comprehensive income and presented in equity. On the disposal of a subsidiary, whose functional and reporting currency is not euro, the cumulative translation difference for that entity is recognized in the income statement as part of the gain or loss on the sale.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__30": { "value": "Segment reporting
The Group is led as a whole and not organized nor managed in inde-pendent divisions. The Group\u2019s CODM is Group CEO together with the Board of Directors. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. Rapala VMC as a whole is considered as a single operating segment and a cash generating unit. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__31-1": { "value": "Impairments of tangible and intangible assets
The carrying amounts of tangible and intangible assets are reviewed at each balance sheet date to determine whether there is any indi-cation of impairment. If indication exists, the recoverable amount is
measured. Indications of potential need for impairment may be for example changes in market conditions and sales prices, decisions on significant restructurings or change in profitability.
Goodwill, intangible assets with indefinite useful lives and unfinished intangible assets are in all cases tested annually. For the purposes of as-sessing impairment, assets are grouped at the lowest cash generating unit level for which there are separately identifiable, mainly independent, cash inflows and outflows.
An impairment loss is the amount by which the carrying amount of the assets exceeds the recoverable amount. The recoverable amount is determined by reference to discounted future net cash flows expected to be generated by the asset. Discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment loss is immediately recognized in the income statement.
Impairment losses attributable to a cash-generating unit are used to deducting first the goodwill allocated to the cash-generating unit and, thereafter, the other assets of the unit on an equal basis. The useful life of the asset to be depreciated is reassessed in connection with the recognition of the impairment loss. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the recoverable amount. However, the reversal must not cause that the adjusted value is higher than the car-rying amount that would have been determined if no impairment loss had been recognized in prior years. Impairment losses recognized for goodwill are not reversed.
Impairment testing
The carrying amounts of tangible and intangible assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. Goodwill, intangible assets with indefinite useful lives and unfinished tangible assets are in all cases tested annually. For the purposes of assessing impairment, assets are grouped at the lowest cash generating unit level for which there are separately identifiable, mainly independent, cash inflows and outflows. An impairment loss is the amount by which the carrying amount of the assets exceeds the recoverable amount. The recoverable amount is determined by refer-ence to discounted future net cash flows expected to be generated by the asset. These calculations require the use of estimates.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__32-1": { "value": "Impairments of tangible and intangible assets
The carrying amounts of tangible and intangible assets are reviewed at each balance sheet date to determine whether there is any indi-cation of impairment. If indication exists, the recoverable amount is
measured. Indications of potential need for impairment may be for example changes in market conditions and sales prices, decisions on significant restructurings or change in profitability.
Goodwill, intangible assets with indefinite useful lives and unfinished intangible assets are in all cases tested annually. For the purposes of as-sessing impairment, assets are grouped at the lowest cash generating unit level for which there are separately identifiable, mainly independent, cash inflows and outflows.
An impairment loss is the amount by which the carrying amount of the assets exceeds the recoverable amount. The recoverable amount is determined by reference to discounted future net cash flows expected to be generated by the asset. Discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment loss is immediately recognized in the income statement.
Impairment losses attributable to a cash-generating unit are used to deducting first the goodwill allocated to the cash-generating unit and, thereafter, the other assets of the unit on an equal basis. The useful life of the asset to be depreciated is reassessed in connection with the recognition of the impairment loss. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the recoverable amount. However, the reversal must not cause that the adjusted value is higher than the car-rying amount that would have been determined if no impairment loss had been recognized in prior years. Impairment losses recognized for goodwill are not reversed.
11
INTANGIBLE ASSETS
Accounting principles
Intangible assets include customer relations, trademarks, capitalized development expenses, patents, copyrights, li-censes and software. An intangible asset is recognized in the balance sheet only if it is probable that the future economic benefits that are attributable to the asset will flow to the Group, and the cost of the asset can be measured reliably. Intangible assets are stated at cost, amortized on a straight-line basis over the expected useful lives which vary from 3 to 15 years and adjusted for any impairment charges.
Trademarks and other intangible assets whose useful life is estimated to be indefinite are estimated to affect cash flow accumulation for an undefined period of time. The expected useful life for most trademarks is indefinite and therefore they are not amortized. These intangibles are measured at cost less any accumulated impairment loss and not amor-tized. Intangible assets with indefinite useful lives are tested for impairment annually. The valuation of intangible assets acquired in a business combination is based on fair value as at the date of acquisition.
Expected useful lives and indefinite lives of intangible as-sets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, amortization periods are changed accordingly.
2025
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Additions | 0.5 | 0.5 | |||
Disposals | -0.3 | -1.6 | -1.9 | ||
Translation differences | -4.7 | -2.1 | -0.1 | -0.5 | -7.5 |
Acquisition cost Dec. 31 | 61.5 | 33.7 | 2.6 | 7.4 | 105.2 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -2.6 | -6.3 | -9.8 | |
Disposals | 0.3 | 1.6 | 1.9 | ||
Amortization during the period | -0.1 | -0.1 | -0.5 | -0.7 | |
Impairments | -0.5 | -0.5 | |||
Translation differences | 0.0 | 0.1 | 0.1 | 0.2 | |
Accumulated amortization and impairments Dec. 31 | -0.7 | -2.6 | -5.6 | -8.9 | |
Carrying value Jan. 1 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
Carrying value Dec. 31 | 61.5 | 33.0 | 0.0 | 1.8 | 96.4 |
2024
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 64.3 | 35.4 | 3.9 | 10.2 | 113.8 |
Additions | 0.0 | 0.3 | 0.3 | ||
Disposals | -0.1 | -1.3 | -2.2 | -3.6 | |
Reclassifications 1) | -0.3 | 0.6 | 0.3 | ||
Translation differences | 2.0 | 1.2 | 0.1 | 0.1 | 3.4 |
Acquisition cost Dec. 31 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -3.8 | -7.4 | -12.0 | |
Disposals | 0.1 | 1.3 | 1.8 | 3.2 | |
Amortization during the period | -0.1 | -0.7 | -0.9 | ||
Translation differences | -0.2 | -0.2 | 0.0 | -0.3 | |
Accumulated amortization and impairments Dec. 31 | -0.9 | -2.6 | -6.3 | -9.8 | |
Carrying value Jan. 1 | 64.3 | 34.5 | 0.2 | 2.8 | 101.7 |
Carrying value Dec. 31 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
1)Includes reclassifications between intangible and tangible assets.
GOODWILL AND TRADEMARKS WITH INDEFINITE LIVES
EUR million | Total |
2025 | |
Goodwill | 61.5 |
Trademarks with indefinite lives | 33.0 |
Discount rate, % | 10.0 |
2024 | |
Goodwill | 66.3 |
Trademarks with indefinite lives | 35.1 |
Discount rate, % | 9.9 |
Impairment testing of goodwill and trademarks with indefinite lives
The Group is led as a whole and not organized nor managed in inde-pendent divisions. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level. However, according to IFRS, the lowest cash-generating unit (CGU) cannot be larger than an operating segment in the Group\u2019s segment reporting. The Group did announce on 12th December 2024 updating its IFRS segment reporting following the recent strategic organisational changes and from December 2024 onwards, reporting segments \u201cGroup products\u201d and \u201cThird Party Products\u201d will be removed. As a conseguence of the update Rapala VMC as a whole is considered as a single operating segment and a cash generating unit.
The recoverable amount of the CGU is determined based on value-inuse calculations. Cash flow projections, which were used in these
calculations, were based on most recent 5-year financial forecasts pre-pared by the management and approved by the Board. The estimated sales and production volumes are derived from the utilization of existing property, plant and equipment. The most important assumptions on which management has based its cash flow projections are the growth of sales and profitability and discount rate. Discount rate is the weighted average pre-tax cost of capital (WACC). The components of WACC are the riskfree yield rate, market risk premium, industry specific beta, cost of debt, and target capital structure. In the impairment tests prepared in 2025 and 2024, the growth rate used to extrapolate the cash flow be-yond the five-year period is 0%. As a result of the performed impairment tests, no impairment losses have been recognized in 2025 or 2024.
Key assumptions
Sales\u2013 The Group\u2019s estimated sales are based on present and future product assortment and utilization of distribution and manufacturing capacity. In addition, estimated sales are based on long-term growth of industry and further implementation of Group\u2019s strategic objectives. EBITDA margin \u2013 The Group\u2019s estimated EBITDA margin, operating profit before depreciation and impairments compared to net sales, is based on past years actual margins and management\u2019s view on sales and gross margin development. The increase in general cost level has also been taken into account in the development of EBITDA margin.
Discount rate\u2013 Discount rate is the weighted average pre-tax cost of capital (WACC). Weighted average cost of capital represents the total cost of Group\u2019s equity and debt taken into account specific risks related to assets.
Growth rate \u2013 The growth factor used is, at the management\u2019s discre-tion, conservative compared to the group\u2019s longer-term realized revenue level.
Sensitivity analysis
The Group is the most sensitive to impairment loss especially with regard to discount rate growth. At the time of testing the recoverable amount of the Group exceeds 19.5 MEUR from it carrying amount and discount rate may not increase by more than 0.7%-points, after which the need of impairment arises.
Impairments of tangible and intangible assets
The carrying amounts of tangible and intangible assets are reviewed at each balance sheet date to determine whether there is any indi-cation of impairment. If indication exists, the recoverable amount is
measured. Indications of potential need for impairment may be for example changes in market conditions and sales prices, decisions on significant restructurings or change in profitability.
Goodwill, intangible assets with indefinite useful lives and unfinished intangible assets are in all cases tested annually. For the purposes of as-sessing impairment, assets are grouped at the lowest cash generating unit level for which there are separately identifiable, mainly independent, cash inflows and outflows.
An impairment loss is the amount by which the carrying amount of the assets exceeds the recoverable amount. The recoverable amount is determined by reference to discounted future net cash flows expected to be generated by the asset. Discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment loss is immediately recognized in the income statement.
Impairment losses attributable to a cash-generating unit are used to deducting first the goodwill allocated to the cash-generating unit and, thereafter, the other assets of the unit on an equal basis. The useful life of the asset to be depreciated is reassessed in connection with the recognition of the impairment loss. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the recoverable amount. However, the reversal must not cause that the adjusted value is higher than the car-rying amount that would have been determined if no impairment loss had been recognized in prior years. Impairment losses recognized for goodwill are not reversed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__34": { "value": "Cash flow statement
Cash and cash equivalents presented in the cash flow statement com-prise cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Cash generated from operating activities has been reported using the indirect method. All income taxes paid during the financial year are presented in Net cash generated from operating activities, unless they can be particularly allocated to net cash from (used in) investing or financing activities. Unrealized exchange gains and losses from cash and cash equivalents denominated in foreign currencies are presented on a separate row before cash and cash equivalents at the end of period, separate from cash generated from (used in) operating, investing and financing activities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__35-1": { "value": "Comparable operating profit and items affecting comparability
In order to reflect the underlying business performance and to enhance comparability between financial periods, the Group presents alternative performance measures. Comparable operating profit is operating profit excluding mark-to-market valuations of operative currency derivatives and other items affecting comparability, which include material restruc-turing costs, impairments, gains and losses on business combinations and disposals, insurance compensations and other non-operational items. Alternative performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.
Critical accounting estimates and judgments
The preparation of the consolidated financial statements in accordance with IFRS requires management to make certain estimates and assump-tions that affect the amounts recognized in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. In addition, judgment has to be exercised in applying the accounting principles of the financial statements. Management\u2019s estimates and assumptions are based on historical experience and
plausible future scenarios, which are continually evaluated. Possible changes in estimates and assumptions are recognized in the account-ing period during which estimates and assumptions were fixed and in all subsequent accounting periods.
The key assumptions concerning the future and other key sources of uncertainty related to estimations at the balance sheet date, that have significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next accounting period, are discussed below.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__38-1": { "value": "Impairment testing
The carrying amounts of tangible and intangible assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. Goodwill, intangible assets with indefinite useful lives and unfinished tangible assets are in all cases tested annually. For the purposes of assessing impairment, assets are grouped at the lowest cash generating unit level for which there are separately identifiable, mainly independent, cash inflows and outflows. An impairment loss is the amount by which the carrying amount of the assets exceeds the recoverable amount. The recoverable amount is determined by refer-ence to discounted future net cash flows expected to be generated by the asset. These calculations require the use of estimates.
CREDIT AND DEFAULT RISK
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, includ-ing deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The maximum exposure to credit risk is limited to the carrying value of the financial assets as included in the consolidated statement of financial position. The car-rying value of financial assets is disclosed in note 22.
The Group follows actively credit and default risks associated with customers and other counterparties. The Group\u2019s credit and default risk portfolio did not significantly change during the course of the financial pe-riod. The proportional amount of Group\u2019s trade receivables which are past due, increased from 2024 levels. Net allowance for credit losses related to trade receivables remained at the same level as in the 2024 financial year.
Business related credit risk
The Group\u2019s accounts receivables are generated by a large number of customers worldwide and do not include any significant concentrations of credit risk by customer or by geographical area.
The management of credit risk is allocated to each operative business unit. Before providing credit to any new customer, background checks are carried out. Cash, advance payments and letters of credit are also applied with new and existing customers. Each business unit is responsible for setting credit limits and monitoring it\u2019s credit customers\u2019 financial situ-ation. Customers\u2019 payment behavior is monitored regularly and delays in payments can trigger payment reminders, stopping the shipments, requirements for advance payments for future shipments and eventually legal collection procedures. In significant cases, business units consult with the Group\u2019s finance management before taking final decisions. In exceptional cases, payment terms may be renegotiated.\t
Group recognizes credit loss of trade receivables by applying sim-plified approach of expected credit loss according to IFRS 9, which uses a lifetime expected loss allowance. Group has estimated based on previous year\u2019s credit losses by aging category and nature as well as macroeconomic outlook in the near future, the expected credit loss provision. Trade receivables are monitored in client segment and loca-tion information.
Estimate on expected credit losses is based on management\u2019s best judgement.
More information on allowance for trade receivables is presented in note 15.
In the table below is presented analysis of trade receivables that were past due but not impaired.
Analysis of trade receivables that were past due but not impaired
EUR Million | 2025 | 2024 |
Neither past due nor impaired | 18.0 | 19.8 |
Past due but not impaired | ||
Less than 1 month | 3.2 | 2.9 |
1-3 months | 1.1 | 0.8 |
3-6 months | 0.5 | 0.4 |
Over 6 months | 0.3 | 0.5 |
Total | 23.1 | 24.4 |
Trade loss provision from expected credit loss model, %
% | 2025 |
Neither past due nor impaired | 0.2 |
Past due but not impaired | |
Less than 1 month | 0.9 |
1-3 months | 6.0 |
3-6 months | 11.0 |
Over 6 months | 20-100 |
Financial credit risk
Financial instruments contain an element of risk resulting from changes in market price of such instruments due to counterparties becoming less creditworthy or risk of loss due to counterparties being unable to meet their obligations. This risk is measured and monitored centrally by the Group Risk Management.
Financial credit risk is managed actively by limiting counterparties to a sufficient number of major banks and financial institutions and monitoring the credit worthiness and exposure size continuously as well as through entering into collateral agreements with certain counterpar-ties. The Group reduces credit risk by executing treasury transactions only with approved counterparties. All significant counterparties are rated with the minimum counterparty credit rating requirement being BBB (S&P). Foreign subsidiaries may have bank accounts in unrated financial institutions. In order to decrease credit risk associated with local banks used by subsidiaries in foreign countries, the subsidiar-ies are required to deposit their excess cash balances with the Group Treasury on an ongoing basis.
Group\u2019s all investments related to liquidity management are made in liquid instruments with low credit risk. For instance, the Group does not have investments in commercial papers.
2
GEOGRAPHICAL AND GROUP-WIDE INFORMATION
Accounting principles
Net sales comprise of consideration received less indirect sales taxes, discounts and exchange rate differences aris-ing from sales denominated in foreign currency. Revenue is recognized when the performance obligation is satisfied, and customer obtains control of that asset. Mainly, revenue is rec-ognized on products, when they are delivered to the customer in compliance with the contract terms, and the point of time of transferring the control is identified in customer specific delivery terms in purchase orders and/or frame agreements. The costs of shipping and distributing products are included in other operating expenses. Revenues from services are re-corded when the service has been performed.
Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms. Royalty in-come is recorded according to the contents of the agreement. Interest income is recognized by the effective yield method. Dividend income is recognized when the company has ac-quired a right to receive the dividends.
The Group operates in four geographical areas which are North America, Nordic, Rest of Europe and Rest of the World. External net sales and non-current assets are presented separately in the countries which proportion is significant.
External net sales by unit location
EUR million | 2025 | 2024 |
Finland | 20.3 | 22.8 |
Other Nordic Countries | 3.1 | 3.0 |
Nordic total | 23.4 | 25.8 |
Russia | 3.8 | 4.8 |
France | 34.9 | 35.8 |
Other European Countries | 17.5 | 17.8 |
Rest of Europe Total | 56.2 | 58.4 |
USA | 105.5 | 98.3 |
Other North America | 17.3 | 13.6 |
North America total | 122.8 | 111.9 |
Rest of the World total | 25.0 | 24.8 |
Total | 227.5 | 220.9 |
The non-current assets exclude non-current financial assets and de-ferred tax assets.
The Group\u2019s customer base consists of a large number of customers in several market areas and no single customer represent by itself a significant part of the Group\u2019s net sales.
Non-current assets by unit location
EUR million | 2025 | 2024 |
Finland | 21.2 | 23.6 |
Other Nordic Countries | 1.4 | 1.4 |
Nordic total | 22.6 | 24.9 |
Russia | 0.3 | 0.2 |
Other countries | 24.5 | 25.8 |
Rest of Europe total | 24.8 | 26.1 |
USA | 36.5 | 41.7 |
Other North America | 12.8 | 14.2 |
North America total | 49.3 | 55.9 |
China (incl. Hong Kong) | 26.6 | 28.7 |
Other countries | 2.7 | 3.1 |
Rest of the World total | 29.3 | 31.9 |
Total | 126.0 | 138.8 |
2
GEOGRAPHICAL AND GROUP-WIDE INFORMATION
Accounting principles
Net sales comprise of consideration received less indirect sales taxes, discounts and exchange rate differences aris-ing from sales denominated in foreign currency. Revenue is recognized when the performance obligation is satisfied, and customer obtains control of that asset. Mainly, revenue is rec-ognized on products, when they are delivered to the customer in compliance with the contract terms, and the point of time of transferring the control is identified in customer specific delivery terms in purchase orders and/or frame agreements. The costs of shipping and distributing products are included in other operating expenses. Revenues from services are re-corded when the service has been performed.
Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms. Royalty in-come is recorded according to the contents of the agreement. Interest income is recognized by the effective yield method. Dividend income is recognized when the company has ac-quired a right to receive the dividends.
The Group operates in four geographical areas which are North America, Nordic, Rest of Europe and Rest of the World. External net sales and non-current assets are presented separately in the countries which proportion is significant.
External net sales by unit location
EUR million | 2025 | 2024 |
Finland | 20.3 | 22.8 |
Other Nordic Countries | 3.1 | 3.0 |
Nordic total | 23.4 | 25.8 |
Russia | 3.8 | 4.8 |
France | 34.9 | 35.8 |
Other European Countries | 17.5 | 17.8 |
Rest of Europe Total | 56.2 | 58.4 |
USA | 105.5 | 98.3 |
Other North America | 17.3 | 13.6 |
North America total | 122.8 | 111.9 |
Rest of the World total | 25.0 | 24.8 |
Total | 227.5 | 220.9 |
The non-current assets exclude non-current financial assets and de-ferred tax assets.
The Group\u2019s customer base consists of a large number of customers in several market areas and no single customer represent by itself a significant part of the Group\u2019s net sales.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__41": { "value": "2
GEOGRAPHICAL AND GROUP-WIDE INFORMATION
Accounting principles
Net sales comprise of consideration received less indirect sales taxes, discounts and exchange rate differences aris-ing from sales denominated in foreign currency. Revenue is recognized when the performance obligation is satisfied, and customer obtains control of that asset. Mainly, revenue is rec-ognized on products, when they are delivered to the customer in compliance with the contract terms, and the point of time of transferring the control is identified in customer specific delivery terms in purchase orders and/or frame agreements. The costs of shipping and distributing products are included in other operating expenses. Revenues from services are re-corded when the service has been performed.
Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms. Royalty in-come is recorded according to the contents of the agreement. Interest income is recognized by the effective yield method. Dividend income is recognized when the company has ac-quired a right to receive the dividends.
The Group operates in four geographical areas which are North America, Nordic, Rest of Europe and Rest of the World. External net sales and non-current assets are presented separately in the countries which proportion is significant.
External net sales by unit location
EUR million | 2025 | 2024 |
Finland | 20.3 | 22.8 |
Other Nordic Countries | 3.1 | 3.0 |
Nordic total | 23.4 | 25.8 |
Russia | 3.8 | 4.8 |
France | 34.9 | 35.8 |
Other European Countries | 17.5 | 17.8 |
Rest of Europe Total | 56.2 | 58.4 |
USA | 105.5 | 98.3 |
Other North America | 17.3 | 13.6 |
North America total | 122.8 | 111.9 |
Rest of the World total | 25.0 | 24.8 |
Total | 227.5 | 220.9 |
The non-current assets exclude non-current financial assets and de-ferred tax assets.
The Group\u2019s customer base consists of a large number of customers in several market areas and no single customer represent by itself a significant part of the Group\u2019s net sales.
Non-current assets by unit location
EUR million | 2025 | 2024 |
Finland | 21.2 | 23.6 |
Other Nordic Countries | 1.4 | 1.4 |
Nordic total | 22.6 | 24.9 |
Russia | 0.3 | 0.2 |
Other countries | 24.5 | 25.8 |
Rest of Europe total | 24.8 | 26.1 |
USA | 36.5 | 41.7 |
Other North America | 12.8 | 14.2 |
North America total | 49.3 | 55.9 |
China (incl. Hong Kong) | 26.6 | 28.7 |
Other countries | 2.7 | 3.1 |
Rest of the World total | 29.3 | 31.9 |
Total | 126.0 | 138.8 |
2
GEOGRAPHICAL AND GROUP-WIDE INFORMATION
Accounting principles
Net sales comprise of consideration received less indirect sales taxes, discounts and exchange rate differences aris-ing from sales denominated in foreign currency. Revenue is recognized when the performance obligation is satisfied, and customer obtains control of that asset. Mainly, revenue is rec-ognized on products, when they are delivered to the customer in compliance with the contract terms, and the point of time of transferring the control is identified in customer specific delivery terms in purchase orders and/or frame agreements. The costs of shipping and distributing products are included in other operating expenses. Revenues from services are re-corded when the service has been performed.
Rental income arising from operating leases is accounted for on a straight-line basis over the lease terms. Royalty in-come is recorded according to the contents of the agreement. Interest income is recognized by the effective yield method. Dividend income is recognized when the company has ac-quired a right to receive the dividends.
The Group operates in four geographical areas which are North America, Nordic, Rest of Europe and Rest of the World. External net sales and non-current assets are presented separately in the countries which proportion is significant.
External net sales by unit location
EUR million | 2025 | 2024 |
Finland | 20.3 | 22.8 |
Other Nordic Countries | 3.1 | 3.0 |
Nordic total | 23.4 | 25.8 |
Russia | 3.8 | 4.8 |
France | 34.9 | 35.8 |
Other European Countries | 17.5 | 17.8 |
Rest of Europe Total | 56.2 | 58.4 |
USA | 105.5 | 98.3 |
Other North America | 17.3 | 13.6 |
North America total | 122.8 | 111.9 |
Rest of the World total | 25.0 | 24.8 |
Total | 227.5 | 220.9 |
The non-current assets exclude non-current financial assets and de-ferred tax assets.
The Group\u2019s customer base consists of a large number of customers in several market areas and no single customer represent by itself a significant part of the Group\u2019s net sales.
Non-current assets by unit location
EUR million | 2025 | 2024 |
Finland | 21.2 | 23.6 |
Other Nordic Countries | 1.4 | 1.4 |
Nordic total | 22.6 | 24.9 |
Russia | 0.3 | 0.2 |
Other countries | 24.5 | 25.8 |
Rest of Europe total | 24.8 | 26.1 |
USA | 36.5 | 41.7 |
Other North America | 12.8 | 14.2 |
North America total | 49.3 | 55.9 |
China (incl. Hong Kong) | 26.6 | 28.7 |
Other countries | 2.7 | 3.1 |
Rest of the World total | 29.3 | 31.9 |
Total | 126.0 | 138.8 |
3
ACQUISITIONS AND DIVESTMENTS
No acquisitions or divestments occurred in 2024 or 2025.
3
ACQUISITIONS AND DIVESTMENTS
No acquisitions or divestments occurred in 2024 or 2025.
4
OTHER OPERATING INCOME
EUR million | 2025 | 2024 |
Rental income | 0.1 | 0.1 |
Other income | 0.2 | 0.2 |
Total | 0.3 | 0.3 |
5
OTHER OPERATING EXPENSES
EUR million | 2025 | 2024 |
Selling and marketing expenses | -9.5 | -9.3 |
Rents paid (outside of IFRS 16) | -1.3 | -1.4 |
Freight out | -7.7 | -7.9 |
Maintenance and utility expenses | -5.3 | -5.7 |
Traveling expenses | -2.6 | -2.4 |
Sales commissions | -4.0 | -3.7 |
Consulting expenses | -1.7 | -1.9 |
IT and telecommunication | -3.5 | -3.7 |
Auditors' fees and services | -0.8 | -0.8 |
Outsourced logistics | -0.7 | -0.8 |
Currency derivatives | 0.7 | -0.7 |
Other expenses | -6.8 | -6.7 |
Total | -43.2 | -45.1 |
AUDITORS\u2019 FEES AND SERVICES
EUR million | 2025 | 2024 |
Audit fees* | -0.8 | -0.8 |
Non-audit fees | -0.0 | -0.0 |
Total | -0.8 | -0.8 |
*Audit fees rendered to the Group auditor Deloitte were 0.6 MEUR
(2024: 0.5 MEUR).Audit fees also include the auditor\u2019s limited assurance report on the sustainability report.
4
OTHER OPERATING INCOME
EUR million | 2025 | 2024 |
Rental income | 0.1 | 0.1 |
Other income | 0.2 | 0.2 |
Total | 0.3 | 0.3 |
5
OTHER OPERATING EXPENSES
EUR million | 2025 | 2024 |
Selling and marketing expenses | -9.5 | -9.3 |
Rents paid (outside of IFRS 16) | -1.3 | -1.4 |
Freight out | -7.7 | -7.9 |
Maintenance and utility expenses | -5.3 | -5.7 |
Traveling expenses | -2.6 | -2.4 |
Sales commissions | -4.0 | -3.7 |
Consulting expenses | -1.7 | -1.9 |
IT and telecommunication | -3.5 | -3.7 |
Auditors' fees and services | -0.8 | -0.8 |
Outsourced logistics | -0.7 | -0.8 |
Currency derivatives | 0.7 | -0.7 |
Other expenses | -6.8 | -6.7 |
Total | -43.2 | -45.1 |
AUDITORS\u2019 FEES AND SERVICES
EUR million | 2025 | 2024 |
Audit fees* | -0.8 | -0.8 |
Non-audit fees | -0.0 | -0.0 |
Total | -0.8 | -0.8 |
*Audit fees rendered to the Group auditor Deloitte were 0.6 MEUR
(2024: 0.5 MEUR).Audit fees also include the auditor\u2019s limited assurance report on the sustainability report.
5
OTHER OPERATING EXPENSES
EUR million | 2025 | 2024 |
Selling and marketing expenses | -9.5 | -9.3 |
Rents paid (outside of IFRS 16) | -1.3 | -1.4 |
Freight out | -7.7 | -7.9 |
Maintenance and utility expenses | -5.3 | -5.7 |
Traveling expenses | -2.6 | -2.4 |
Sales commissions | -4.0 | -3.7 |
Consulting expenses | -1.7 | -1.9 |
IT and telecommunication | -3.5 | -3.7 |
Auditors' fees and services | -0.8 | -0.8 |
Outsourced logistics | -0.7 | -0.8 |
Currency derivatives | 0.7 | -0.7 |
Other expenses | -6.8 | -6.7 |
Total | -43.2 | -45.1 |
AUDITORS\u2019 FEES AND SERVICES
EUR million | 2025 | 2024 |
Audit fees* | -0.8 | -0.8 |
Non-audit fees | -0.0 | -0.0 |
Total | -0.8 | -0.8 |
*Audit fees rendered to the Group auditor Deloitte were 0.6 MEUR
(2024: 0.5 MEUR).Audit fees also include the auditor\u2019s limited assurance report on the sustainability report.
5
OTHER OPERATING EXPENSES
EUR million | 2025 | 2024 |
Selling and marketing expenses | -9.5 | -9.3 |
Rents paid (outside of IFRS 16) | -1.3 | -1.4 |
Freight out | -7.7 | -7.9 |
Maintenance and utility expenses | -5.3 | -5.7 |
Traveling expenses | -2.6 | -2.4 |
Sales commissions | -4.0 | -3.7 |
Consulting expenses | -1.7 | -1.9 |
IT and telecommunication | -3.5 | -3.7 |
Auditors' fees and services | -0.8 | -0.8 |
Outsourced logistics | -0.7 | -0.8 |
Currency derivatives | 0.7 | -0.7 |
Other expenses | -6.8 | -6.7 |
Total | -43.2 | -45.1 |
AUDITORS\u2019 FEES AND SERVICES
EUR million | 2025 | 2024 |
Audit fees* | -0.8 | -0.8 |
Non-audit fees | -0.0 | -0.0 |
Total | -0.8 | -0.8 |
*Audit fees rendered to the Group auditor Deloitte were 0.6 MEUR
(2024: 0.5 MEUR).Audit fees also include the auditor\u2019s limited assurance report on the sustainability report.
6
MATERIALS AND SERVICES
EUR million | 2025 | 2024 |
Materials, goods and supplies | ||
Purchases during the period | -104.7 | -90.6 |
Change in inventory | 0.0 | -2.1 |
External services | -1.8 | -2.7 |
Total | -106.5 | -95.4 |
7
EMPLOYEE BENEFIT EXPENSES
EUR million | 2025 | 2024 |
Wages and salaries | -49.1 | -49.8 |
Pension costs - defined contribution plans | -2.6 | -2.5 |
Pension costs - defined benefit plans | -0.2 | -0.2 |
Other personnel expenses | -10.8 | -11.1 |
Share-based incentive plan | 0.0 | -0.1 |
Total | -62.7 | -63.6 |
The employee benefit expenses in 2025 included EUR 0.2 million em-ployee related restructuring expenses (2024: EUR 1.6 million). For more details on employee benefits for top management and share-based incentive plans, see notes 27 and 28.
AVERAGE PERSONNEL
Persons | 2025 | 2024 |
North America | 140 | 133 |
Nordic | 146 | 139 |
Rest of Europe | 867 | 817 |
Rest of the World | 255 | 264 |
Total | 1 408 | 1 353 |
8
RESEARCH AND DEVELOPMENT EXPENSES
Net profit for the period includes research and development expenses of EUR 1.1 million recognized as an expense in 2025 (2024: EUR 1.0 million). Group has not capitalized development costs.
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
5
OTHER OPERATING EXPENSES
EUR million | 2025 | 2024 |
Selling and marketing expenses | -9.5 | -9.3 |
Rents paid (outside of IFRS 16) | -1.3 | -1.4 |
Freight out | -7.7 | -7.9 |
Maintenance and utility expenses | -5.3 | -5.7 |
Traveling expenses | -2.6 | -2.4 |
Sales commissions | -4.0 | -3.7 |
Consulting expenses | -1.7 | -1.9 |
IT and telecommunication | -3.5 | -3.7 |
Auditors' fees and services | -0.8 | -0.8 |
Outsourced logistics | -0.7 | -0.8 |
Currency derivatives | 0.7 | -0.7 |
Other expenses | -6.8 | -6.7 |
Total | -43.2 | -45.1 |
AUDITORS\u2019 FEES AND SERVICES
EUR million | 2025 | 2024 |
Audit fees* | -0.8 | -0.8 |
Non-audit fees | -0.0 | -0.0 |
Total | -0.8 | -0.8 |
*Audit fees rendered to the Group auditor Deloitte were 0.6 MEUR
(2024: 0.5 MEUR).Audit fees also include the auditor\u2019s limited assurance report on the sustainability report.
6
MATERIALS AND SERVICES
EUR million | 2025 | 2024 |
Materials, goods and supplies | ||
Purchases during the period | -104.7 | -90.6 |
Change in inventory | 0.0 | -2.1 |
External services | -1.8 | -2.7 |
Total | -106.5 | -95.4 |
7
EMPLOYEE BENEFIT EXPENSES
EUR million | 2025 | 2024 |
Wages and salaries | -49.1 | -49.8 |
Pension costs - defined contribution plans | -2.6 | -2.5 |
Pension costs - defined benefit plans | -0.2 | -0.2 |
Other personnel expenses | -10.8 | -11.1 |
Share-based incentive plan | 0.0 | -0.1 |
Total | -62.7 | -63.6 |
The employee benefit expenses in 2025 included EUR 0.2 million em-ployee related restructuring expenses (2024: EUR 1.6 million). For more details on employee benefits for top management and share-based incentive plans, see notes 27 and 28.
AVERAGE PERSONNEL
Persons | 2025 | 2024 |
North America | 140 | 133 |
Nordic | 146 | 139 |
Rest of Europe | 867 | 817 |
Rest of the World | 255 | 264 |
Total | 1 408 | 1 353 |
8
RESEARCH AND DEVELOPMENT EXPENSES
Net profit for the period includes research and development expenses of EUR 1.1 million recognized as an expense in 2025 (2024: EUR 1.0 million). Group has not capitalized development costs.
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
AUDITORS\u2019 FEES AND SERVICES
EUR million | 2025 | 2024 |
Audit fees* | -0.8 | -0.8 |
Non-audit fees | -0.0 | -0.0 |
Total | -0.8 | -0.8 |
*Audit fees rendered to the Group auditor Deloitte were 0.6 MEUR
(2024: 0.5 MEUR).Audit fees also include the auditor\u2019s limited assurance report on the sustainability report.
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MATERIALS AND SERVICES
EUR million | 2025 | 2024 |
Materials, goods and supplies | ||
Purchases during the period | -104.7 | -90.6 |
Change in inventory | 0.0 | -2.1 |
External services | -1.8 | -2.7 |
Total | -106.5 | -95.4 |
7
EMPLOYEE BENEFIT EXPENSES
EUR million | 2025 | 2024 |
Wages and salaries | -49.1 | -49.8 |
Pension costs - defined contribution plans | -2.6 | -2.5 |
Pension costs - defined benefit plans | -0.2 | -0.2 |
Other personnel expenses | -10.8 | -11.1 |
Share-based incentive plan | 0.0 | -0.1 |
Total | -62.7 | -63.6 |
The employee benefit expenses in 2025 included EUR 0.2 million em-ployee related restructuring expenses (2024: EUR 1.6 million). For more details on employee benefits for top management and share-based incentive plans, see notes 27 and 28.
AVERAGE PERSONNEL
Persons | 2025 | 2024 |
North America | 140 | 133 |
Nordic | 146 | 139 |
Rest of Europe | 867 | 817 |
Rest of the World | 255 | 264 |
Total | 1 408 | 1 353 |
7
EMPLOYEE BENEFIT EXPENSES
EUR million | 2025 | 2024 |
Wages and salaries | -49.1 | -49.8 |
Pension costs - defined contribution plans | -2.6 | -2.5 |
Pension costs - defined benefit plans | -0.2 | -0.2 |
Other personnel expenses | -10.8 | -11.1 |
Share-based incentive plan | 0.0 | -0.1 |
Total | -62.7 | -63.6 |
The employee benefit expenses in 2025 included EUR 0.2 million em-ployee related restructuring expenses (2024: EUR 1.6 million). For more details on employee benefits for top management and share-based incentive plans, see notes 27 and 28.
AVERAGE PERSONNEL
Persons | 2025 | 2024 |
North America | 140 | 133 |
Nordic | 146 | 139 |
Rest of Europe | 867 | 817 |
Rest of the World | 255 | 264 |
Total | 1 408 | 1 353 |
8
RESEARCH AND DEVELOPMENT EXPENSES
Net profit for the period includes research and development expenses of EUR 1.1 million recognized as an expense in 2025 (2024: EUR 1.0 million). Group has not capitalized development costs.
8
RESEARCH AND DEVELOPMENT EXPENSES
Net profit for the period includes research and development expenses of EUR 1.1 million recognized as an expense in 2025 (2024: EUR 1.0 million). Group has not capitalized development costs.
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
9
FINANCIAL INCOME AND EXPENSES
EUR million | 2025 | 2024 |
Foreign exchange gains and losses | ||
From financial assets | -4.7 | 1.9 |
From financial liabilities measured at amortized cost | 3.0 | -1.2 |
From lease liabilities | 0.0 | 0.0 |
Interest and other financial income | ||
Interest income from financial assets measured at amortized cost | 1.6 | 1.6 |
Other financial income | 0,0 | 0,0 |
Interest and other financial expenses | ||
Interest expense on financial liabilities measured at amortized cost | -5.6 | -7.4 |
Interest rate derivatives | 0.0 | -0.4 |
Currency derivatives | -0.2 | -0.1 |
Interest expenses on lease liabilities | -0.5 | -0.6 |
Other financial expenses | -2.3 | -2.1 |
Total | -8.6 | -8.1 |
RECOGNIZED IN THE STATEMENT OF OTHER COMPREHENSIVE INCOME
EUR million | 2025 | 2024 |
Gains and losses on hedges of net investments, net of tax | -0.2 | -0.1 |
Total | -0.2 | -0.1 |
EXCHANGE GAINS AND LOSSES IN OPERATING PROFIT
EUR million | 2025 | 2024 |
In net sales | 0.3 | 1.1 |
In purchases | 0.2 | -0.3 |
In other operating expenses | ||
Currency derivatives | 0.7 | -0.7 |
Total | 1.1 | 0.0 |
10
INCOME TAXES
Accounting principles
The Group\u2019s income tax expense includes taxes of the Group companies based on taxable profit for the period, together with tax adjustments for previous periods and the change in deferred income taxes. The income tax effects of items recognized directly in other comprehensive income are similarly recognized. The current tax expense for the financial year is calculated from the taxable profit based on the valid tax rate of each country. The tax is adjusted with possible taxes related to previous periods. The share of results in associated companies is reported in the income statement as calculated from net profit and thus including the income tax charge.
Deferred taxes are provided using the liability method, as measured with enacted tax rates, to reflect the temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The main temporary differences arise from the depreciation difference on tangible assets, fair valuation of net assets in acquired companies, intra-group inventory profits, defined benefit plans, inventory allowances and other provisions, untaxed reserves and tax losses carried forward. Temporary differences are recognized as a deferred tax asset to the extent that it is probable that future taxable profits will be available, against which the deductible temporary difference can be utilized.
INCOME TAXES IN THE INCOME STATEMENT
EUR million | 2025 | 2024 |
Current taxes | -1.9 | -2.3 |
Deferred taxes | 1.3 | 2.3 |
Total income taxes | -0.5 | 0.0 |
INCOME TAX RECONCILIATION
EUR million | 2025 | 2024 |
Profit before taxes | -4.4 | 0.5 |
Income taxes at Finnish statutory tax rate (20%) | 0.9 | -0.1 |
Difference between Finnish and foreign tax rates | -0.5 | -0.4 |
Prior year income taxes | 0.0 | 1.0 |
Foreign withholding taxes | -0.1 | -0.2 |
Effect of deferred taxes not recognized | -0.4 | -0.4 |
Benefit arising from previously unrecognized deferred tax asset | ||
0.5 | 1.8 | |
Income taxes on undistributed earnings | 0.1 | -1.0 |
Effect of changes of tax rates | 0.1 | |
Other items | -1.0 | -0.8 |
Income taxes in the income statement | -0.5 | 0.0 |
TAXES IN OTHER COMPREHENSIVE INCOME
2025
EUR million | Before tax | Tax expense/ benefit | Net of tax |
Translation differences | -8.4 | -8.4 | |
Remeasurement of defined benefit liabilities | 0.0 | 0.0 | 0.0 |
Reclassification of translation difference on discontinued operation | 4.7 | 0.0 | 4.7 |
Net investment hedges | -0.2 | 0.0 | -0.2 |
Total | -3.9 | 0.0 | -3.9 |
2024
EUR million | Before tax | Tax expense/ benefit | Net of tax |
Translation differences | 1.1 | 1.1 | |
Remeasurement of defined benefit liabilities | -0.1 | -0.1 | |
Net investment hedges | -0.1 | 0.0 | -0.1 |
Total | 0.9 | 0.0 | 0.9 |
Accounting principles
The Group reviews at each balance sheet date especially the carrying amount of deferred tax assets. Deferred taxes are provided using the liability method, as measured with enacted tax rates, to reflect the temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The main temporary differences arise from the depreciation difference on tangible assets, fair valuation of net assets in acquired companies, intra-group inventory profits, defined benefit plans, inventories and other provisions, untaxed reserves and tax losses carried forward. Temporary differences are recognized as a deferred tax asset to the extent that it is probable that future taxable profits will be available, against which the deductible temporary difference can be utilized. The likelihood for the recovery of deferred tax assets from future taxable income is assessed, and to the extent the recovery is not considered likely the deferred asset is adjusted in accordance. At each balance sheet date the Group reviews whether distribution of earnings in subsidiaries is in its control and probable, and books a deferred tax accordingly.
DEFERRED TAXES
EUR million | 2025 | 2024 |
Lease liabilities | 0.5 | 0.8 |
Tax losses and credits carried forward | 12.6 | 11.2 |
Provisions | 1.8 | 1.3 |
Employee benefits | 0.4 | 0.4 |
Depreciation differences | 2.5 | 2.5 |
Inventories | 3.7 | 3.7 |
Total | 21.5 | 19.9 |
Offset against deferred tax liabilities | -4.3 | -4.9 |
Total deferred tax assets | 17.2 | 14.9 |
Right-of-use assets | 0.4 | 0.7 |
Depreciation differences and other untaxed reserves | 2.7 | 2.9 |
Fair value allocations for acquired net assets | 5.6 | 5.8 |
Undistributed earnings | 4.2 | 4.2 |
Other temporary differences | 0.2 | 0.2 |
Total | 13.1 | 13.8 |
Offset against deferred tax assets | -4.3 | -4.9 |
Total deferred tax liabilities | 8.9 | 8.9 |
Net deferred tax assets (+) / liabilities (-) | 8.3 | 6.0 |
MOVEMENT IN THE NET DEFERRED TAX BALANCE
EUR million | 2025 | 2024 |
Net deferred tax assets (+) and liabilities (-) at January 1 | 6.0 | 3.1 |
Recognized in income statement | 1.3 | 2.3 |
Recognized in other comprehensive income | 0.0 | |
Recognized in equity | 1.0 | 0.7 |
Translation differences | -0.1 | -0.1 |
Net deferred tax assets (+) and liabilities (-) at December 31 | 8.3 | 6.0 |
Deferred tax asset and liability presented separately in the balance sheet. Presented here net according to IAS 12. As of December 31, 2025, the Group had tax losses carried forward of EUR 32.4 million (2024: EUR 37.3 million), for which deferred tax assets have not been recognized in the consolidated financial statements because the real-ization of the tax benefit is not probable.
EUR 2.9 million of these tax losses will expire during the next five years (2024: EUR 1.6 million).
Deferred tax liability on undistributed earnings of subsidiaries has been recognized in the consolidated balance sheet to the extent that distribution is probable within the foreseeable future
The consolidated balance sheet includes deferred tax assets of EUR 12.1 million (2024: EUR 8.5 million) in group companies, which have generated losses in financial year 2025 or 2024. The recognition of these assets is based on profit estimates, which indicate that the real-ization of these deferred tax assets is probable.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__76": { "value": "10
INCOME TAXES
Accounting principles
The Group\u2019s income tax expense includes taxes of the Group companies based on taxable profit for the period, together with tax adjustments for previous periods and the change in deferred income taxes. The income tax effects of items recognized directly in other comprehensive income are similarly recognized. The current tax expense for the financial year is calculated from the taxable profit based on the valid tax rate of each country. The tax is adjusted with possible taxes related to previous periods. The share of results in associated companies is reported in the income statement as calculated from net profit and thus including the income tax charge.
Deferred taxes are provided using the liability method, as measured with enacted tax rates, to reflect the temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The main temporary differences arise from the depreciation difference on tangible assets, fair valuation of net assets in acquired companies, intra-group inventory profits, defined benefit plans, inventory allowances and other provisions, untaxed reserves and tax losses carried forward. Temporary differences are recognized as a deferred tax asset to the extent that it is probable that future taxable profits will be available, against which the deductible temporary difference can be utilized.
INCOME TAXES IN THE INCOME STATEMENT
EUR million | 2025 | 2024 |
Current taxes | -1.9 | -2.3 |
Deferred taxes | 1.3 | 2.3 |
Total income taxes | -0.5 | 0.0 |
INCOME TAX RECONCILIATION
EUR million | 2025 | 2024 |
Profit before taxes | -4.4 | 0.5 |
Income taxes at Finnish statutory tax rate (20%) | 0.9 | -0.1 |
Difference between Finnish and foreign tax rates | -0.5 | -0.4 |
Prior year income taxes | 0.0 | 1.0 |
Foreign withholding taxes | -0.1 | -0.2 |
Effect of deferred taxes not recognized | -0.4 | -0.4 |
Benefit arising from previously unrecognized deferred tax asset | ||
0.5 | 1.8 | |
Income taxes on undistributed earnings | 0.1 | -1.0 |
Effect of changes of tax rates | 0.1 | |
Other items | -1.0 | -0.8 |
Income taxes in the income statement | -0.5 | 0.0 |
TAXES IN OTHER COMPREHENSIVE INCOME
2025
EUR million | Before tax | Tax expense/ benefit | Net of tax |
Translation differences | -8.4 | -8.4 | |
Remeasurement of defined benefit liabilities | 0.0 | 0.0 | 0.0 |
Reclassification of translation difference on discontinued operation | 4.7 | 0.0 | 4.7 |
Net investment hedges | -0.2 | 0.0 | -0.2 |
Total | -3.9 | 0.0 | -3.9 |
2024
EUR million | Before tax | Tax expense/ benefit | Net of tax |
Translation differences | 1.1 | 1.1 | |
Remeasurement of defined benefit liabilities | -0.1 | -0.1 | |
Net investment hedges | -0.1 | 0.0 | -0.1 |
Total | 0.9 | 0.0 | 0.9 |
Accounting principles
The Group reviews at each balance sheet date especially the carrying amount of deferred tax assets. Deferred taxes are provided using the liability method, as measured with enacted tax rates, to reflect the temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The main temporary differences arise from the depreciation difference on tangible assets, fair valuation of net assets in acquired companies, intra-group inventory profits, defined benefit plans, inventories and other provisions, untaxed reserves and tax losses carried forward. Temporary differences are recognized as a deferred tax asset to the extent that it is probable that future taxable profits will be available, against which the deductible temporary difference can be utilized. The likelihood for the recovery of deferred tax assets from future taxable income is assessed, and to the extent the recovery is not considered likely the deferred asset is adjusted in accordance. At each balance sheet date the Group reviews whether distribution of earnings in subsidiaries is in its control and probable, and books a deferred tax accordingly.
DEFERRED TAXES
EUR million | 2025 | 2024 |
Lease liabilities | 0.5 | 0.8 |
Tax losses and credits carried forward | 12.6 | 11.2 |
Provisions | 1.8 | 1.3 |
Employee benefits | 0.4 | 0.4 |
Depreciation differences | 2.5 | 2.5 |
Inventories | 3.7 | 3.7 |
Total | 21.5 | 19.9 |
Offset against deferred tax liabilities | -4.3 | -4.9 |
Total deferred tax assets | 17.2 | 14.9 |
Right-of-use assets | 0.4 | 0.7 |
Depreciation differences and other untaxed reserves | 2.7 | 2.9 |
Fair value allocations for acquired net assets | 5.6 | 5.8 |
Undistributed earnings | 4.2 | 4.2 |
Other temporary differences | 0.2 | 0.2 |
Total | 13.1 | 13.8 |
Offset against deferred tax assets | -4.3 | -4.9 |
Total deferred tax liabilities | 8.9 | 8.9 |
Net deferred tax assets (+) / liabilities (-) | 8.3 | 6.0 |
MOVEMENT IN THE NET DEFERRED TAX BALANCE
EUR million | 2025 | 2024 |
Net deferred tax assets (+) and liabilities (-) at January 1 | 6.0 | 3.1 |
Recognized in income statement | 1.3 | 2.3 |
Recognized in other comprehensive income | 0.0 | |
Recognized in equity | 1.0 | 0.7 |
Translation differences | -0.1 | -0.1 |
Net deferred tax assets (+) and liabilities (-) at December 31 | 8.3 | 6.0 |
Deferred tax asset and liability presented separately in the balance sheet. Presented here net according to IAS 12. As of December 31, 2025, the Group had tax losses carried forward of EUR 32.4 million (2024: EUR 37.3 million), for which deferred tax assets have not been recognized in the consolidated financial statements because the real-ization of the tax benefit is not probable.
EUR 2.9 million of these tax losses will expire during the next five years (2024: EUR 1.6 million).
Deferred tax liability on undistributed earnings of subsidiaries has been recognized in the consolidated balance sheet to the extent that distribution is probable within the foreseeable future
The consolidated balance sheet includes deferred tax assets of EUR 12.1 million (2024: EUR 8.5 million) in group companies, which have generated losses in financial year 2025 or 2024. The recognition of these assets is based on profit estimates, which indicate that the real-ization of these deferred tax assets is probable.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__77": { "value": "10
INCOME TAXES
Accounting principles
The Group\u2019s income tax expense includes taxes of the Group companies based on taxable profit for the period, together with tax adjustments for previous periods and the change in deferred income taxes. The income tax effects of items recognized directly in other comprehensive income are similarly recognized. The current tax expense for the financial year is calculated from the taxable profit based on the valid tax rate of each country. The tax is adjusted with possible taxes related to previous periods. The share of results in associated companies is reported in the income statement as calculated from net profit and thus including the income tax charge.
Deferred taxes are provided using the liability method, as measured with enacted tax rates, to reflect the temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The main temporary differences arise from the depreciation difference on tangible assets, fair valuation of net assets in acquired companies, intra-group inventory profits, defined benefit plans, inventory allowances and other provisions, untaxed reserves and tax losses carried forward. Temporary differences are recognized as a deferred tax asset to the extent that it is probable that future taxable profits will be available, against which the deductible temporary difference can be utilized.
INCOME TAXES IN THE INCOME STATEMENT
EUR million | 2025 | 2024 |
Current taxes | -1.9 | -2.3 |
Deferred taxes | 1.3 | 2.3 |
Total income taxes | -0.5 | 0.0 |
INCOME TAX RECONCILIATION
EUR million | 2025 | 2024 |
Profit before taxes | -4.4 | 0.5 |
Income taxes at Finnish statutory tax rate (20%) | 0.9 | -0.1 |
Difference between Finnish and foreign tax rates | -0.5 | -0.4 |
Prior year income taxes | 0.0 | 1.0 |
Foreign withholding taxes | -0.1 | -0.2 |
Effect of deferred taxes not recognized | -0.4 | -0.4 |
Benefit arising from previously unrecognized deferred tax asset | ||
0.5 | 1.8 | |
Income taxes on undistributed earnings | 0.1 | -1.0 |
Effect of changes of tax rates | 0.1 | |
Other items | -1.0 | -0.8 |
Income taxes in the income statement | -0.5 | 0.0 |
TAXES IN OTHER COMPREHENSIVE INCOME
2025
EUR million | Before tax | Tax expense/ benefit | Net of tax |
Translation differences | -8.4 | -8.4 | |
Remeasurement of defined benefit liabilities | 0.0 | 0.0 | 0.0 |
Reclassification of translation difference on discontinued operation | 4.7 | 0.0 | 4.7 |
Net investment hedges | -0.2 | 0.0 | -0.2 |
Total | -3.9 | 0.0 | -3.9 |
2024
EUR million | Before tax | Tax expense/ benefit | Net of tax |
Translation differences | 1.1 | 1.1 | |
Remeasurement of defined benefit liabilities | -0.1 | -0.1 | |
Net investment hedges | -0.1 | 0.0 | -0.1 |
Total | 0.9 | 0.0 | 0.9 |
Accounting principles
The Group reviews at each balance sheet date especially the carrying amount of deferred tax assets. Deferred taxes are provided using the liability method, as measured with enacted tax rates, to reflect the temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. The main temporary differences arise from the depreciation difference on tangible assets, fair valuation of net assets in acquired companies, intra-group inventory profits, defined benefit plans, inventories and other provisions, untaxed reserves and tax losses carried forward. Temporary differences are recognized as a deferred tax asset to the extent that it is probable that future taxable profits will be available, against which the deductible temporary difference can be utilized. The likelihood for the recovery of deferred tax assets from future taxable income is assessed, and to the extent the recovery is not considered likely the deferred asset is adjusted in accordance. At each balance sheet date the Group reviews whether distribution of earnings in subsidiaries is in its control and probable, and books a deferred tax accordingly.
DEFERRED TAXES
EUR million | 2025 | 2024 |
Lease liabilities | 0.5 | 0.8 |
Tax losses and credits carried forward | 12.6 | 11.2 |
Provisions | 1.8 | 1.3 |
Employee benefits | 0.4 | 0.4 |
Depreciation differences | 2.5 | 2.5 |
Inventories | 3.7 | 3.7 |
Total | 21.5 | 19.9 |
Offset against deferred tax liabilities | -4.3 | -4.9 |
Total deferred tax assets | 17.2 | 14.9 |
Right-of-use assets | 0.4 | 0.7 |
Depreciation differences and other untaxed reserves | 2.7 | 2.9 |
Fair value allocations for acquired net assets | 5.6 | 5.8 |
Undistributed earnings | 4.2 | 4.2 |
Other temporary differences | 0.2 | 0.2 |
Total | 13.1 | 13.8 |
Offset against deferred tax assets | -4.3 | -4.9 |
Total deferred tax liabilities | 8.9 | 8.9 |
Net deferred tax assets (+) / liabilities (-) | 8.3 | 6.0 |
MOVEMENT IN THE NET DEFERRED TAX BALANCE
EUR million | 2025 | 2024 |
Net deferred tax assets (+) and liabilities (-) at January 1 | 6.0 | 3.1 |
Recognized in income statement | 1.3 | 2.3 |
Recognized in other comprehensive income | 0.0 | |
Recognized in equity | 1.0 | 0.7 |
Translation differences | -0.1 | -0.1 |
Net deferred tax assets (+) and liabilities (-) at December 31 | 8.3 | 6.0 |
Deferred tax asset and liability presented separately in the balance sheet. Presented here net according to IAS 12. As of December 31, 2025, the Group had tax losses carried forward of EUR 32.4 million (2024: EUR 37.3 million), for which deferred tax assets have not been recognized in the consolidated financial statements because the real-ization of the tax benefit is not probable.
EUR 2.9 million of these tax losses will expire during the next five years (2024: EUR 1.6 million).
Deferred tax liability on undistributed earnings of subsidiaries has been recognized in the consolidated balance sheet to the extent that distribution is probable within the foreseeable future
The consolidated balance sheet includes deferred tax assets of EUR 12.1 million (2024: EUR 8.5 million) in group companies, which have generated losses in financial year 2025 or 2024. The recognition of these assets is based on profit estimates, which indicate that the real-ization of these deferred tax assets is probable.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__75": { "value": "DEFERRED TAXES
EUR million | 2025 | 2024 |
Lease liabilities | 0.5 | 0.8 |
Tax losses and credits carried forward | 12.6 | 11.2 |
Provisions | 1.8 | 1.3 |
Employee benefits | 0.4 | 0.4 |
Depreciation differences | 2.5 | 2.5 |
Inventories | 3.7 | 3.7 |
Total | 21.5 | 19.9 |
Offset against deferred tax liabilities | -4.3 | -4.9 |
Total deferred tax assets | 17.2 | 14.9 |
Right-of-use assets | 0.4 | 0.7 |
Depreciation differences and other untaxed reserves | 2.7 | 2.9 |
Fair value allocations for acquired net assets | 5.6 | 5.8 |
Undistributed earnings | 4.2 | 4.2 |
Other temporary differences | 0.2 | 0.2 |
Total | 13.1 | 13.8 |
Offset against deferred tax assets | -4.3 | -4.9 |
Total deferred tax liabilities | 8.9 | 8.9 |
Net deferred tax assets (+) / liabilities (-) | 8.3 | 6.0 |
MOVEMENT IN THE NET DEFERRED TAX BALANCE
EUR million | 2025 | 2024 |
Net deferred tax assets (+) and liabilities (-) at January 1 | 6.0 | 3.1 |
Recognized in income statement | 1.3 | 2.3 |
Recognized in other comprehensive income | 0.0 | |
Recognized in equity | 1.0 | 0.7 |
Translation differences | -0.1 | -0.1 |
Net deferred tax assets (+) and liabilities (-) at December 31 | 8.3 | 6.0 |
Deferred tax asset and liability presented separately in the balance sheet. Presented here net according to IAS 12. As of December 31, 2025, the Group had tax losses carried forward of EUR 32.4 million (2024: EUR 37.3 million), for which deferred tax assets have not been recognized in the consolidated financial statements because the real-ization of the tax benefit is not probable.
EUR 2.9 million of these tax losses will expire during the next five years (2024: EUR 1.6 million).
Deferred tax liability on undistributed earnings of subsidiaries has been recognized in the consolidated balance sheet to the extent that distribution is probable within the foreseeable future
The consolidated balance sheet includes deferred tax assets of EUR 12.1 million (2024: EUR 8.5 million) in group companies, which have generated losses in financial year 2025 or 2024. The recognition of these assets is based on profit estimates, which indicate that the real-ization of these deferred tax assets is probable.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__78": { "value": "11
INTANGIBLE ASSETS
Accounting principles
Intangible assets include customer relations, trademarks, capitalized development expenses, patents, copyrights, li-censes and software. An intangible asset is recognized in the balance sheet only if it is probable that the future economic benefits that are attributable to the asset will flow to the Group, and the cost of the asset can be measured reliably. Intangible assets are stated at cost, amortized on a straight-line basis over the expected useful lives which vary from 3 to 15 years and adjusted for any impairment charges.
Trademarks and other intangible assets whose useful life is estimated to be indefinite are estimated to affect cash flow accumulation for an undefined period of time. The expected useful life for most trademarks is indefinite and therefore they are not amortized. These intangibles are measured at cost less any accumulated impairment loss and not amor-tized. Intangible assets with indefinite useful lives are tested for impairment annually. The valuation of intangible assets acquired in a business combination is based on fair value as at the date of acquisition.
Expected useful lives and indefinite lives of intangible as-sets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, amortization periods are changed accordingly.
2025
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Additions | 0.5 | 0.5 | |||
Disposals | -0.3 | -1.6 | -1.9 | ||
Translation differences | -4.7 | -2.1 | -0.1 | -0.5 | -7.5 |
Acquisition cost Dec. 31 | 61.5 | 33.7 | 2.6 | 7.4 | 105.2 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -2.6 | -6.3 | -9.8 | |
Disposals | 0.3 | 1.6 | 1.9 | ||
Amortization during the period | -0.1 | -0.1 | -0.5 | -0.7 | |
Impairments | -0.5 | -0.5 | |||
Translation differences | 0.0 | 0.1 | 0.1 | 0.2 | |
Accumulated amortization and impairments Dec. 31 | -0.7 | -2.6 | -5.6 | -8.9 | |
Carrying value Jan. 1 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
Carrying value Dec. 31 | 61.5 | 33.0 | 0.0 | 1.8 | 96.4 |
2024
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 64.3 | 35.4 | 3.9 | 10.2 | 113.8 |
Additions | 0.0 | 0.3 | 0.3 | ||
Disposals | -0.1 | -1.3 | -2.2 | -3.6 | |
Reclassifications 1) | -0.3 | 0.6 | 0.3 | ||
Translation differences | 2.0 | 1.2 | 0.1 | 0.1 | 3.4 |
Acquisition cost Dec. 31 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -3.8 | -7.4 | -12.0 | |
Disposals | 0.1 | 1.3 | 1.8 | 3.2 | |
Amortization during the period | -0.1 | -0.7 | -0.9 | ||
Translation differences | -0.2 | -0.2 | 0.0 | -0.3 | |
Accumulated amortization and impairments Dec. 31 | -0.9 | -2.6 | -6.3 | -9.8 | |
Carrying value Jan. 1 | 64.3 | 34.5 | 0.2 | 2.8 | 101.7 |
Carrying value Dec. 31 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
1)Includes reclassifications between intangible and tangible assets.
GOODWILL AND TRADEMARKS WITH INDEFINITE LIVES
EUR million | Total |
2025 | |
Goodwill | 61.5 |
Trademarks with indefinite lives | 33.0 |
Discount rate, % | 10.0 |
2024 | |
Goodwill | 66.3 |
Trademarks with indefinite lives | 35.1 |
Discount rate, % | 9.9 |
Impairment testing of goodwill and trademarks with indefinite lives
The Group is led as a whole and not organized nor managed in inde-pendent divisions. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level. However, according to IFRS, the lowest cash-generating unit (CGU) cannot be larger than an operating segment in the Group\u2019s segment reporting. The Group did announce on 12th December 2024 updating its IFRS segment reporting following the recent strategic organisational changes and from December 2024 onwards, reporting segments \u201cGroup products\u201d and \u201cThird Party Products\u201d will be removed. As a conseguence of the update Rapala VMC as a whole is considered as a single operating segment and a cash generating unit.
The recoverable amount of the CGU is determined based on value-inuse calculations. Cash flow projections, which were used in these
calculations, were based on most recent 5-year financial forecasts pre-pared by the management and approved by the Board. The estimated sales and production volumes are derived from the utilization of existing property, plant and equipment. The most important assumptions on which management has based its cash flow projections are the growth of sales and profitability and discount rate. Discount rate is the weighted average pre-tax cost of capital (WACC). The components of WACC are the riskfree yield rate, market risk premium, industry specific beta, cost of debt, and target capital structure. In the impairment tests prepared in 2025 and 2024, the growth rate used to extrapolate the cash flow be-yond the five-year period is 0%. As a result of the performed impairment tests, no impairment losses have been recognized in 2025 or 2024.
Key assumptions
Sales\u2013 The Group\u2019s estimated sales are based on present and future product assortment and utilization of distribution and manufacturing capacity. In addition, estimated sales are based on long-term growth of industry and further implementation of Group\u2019s strategic objectives. EBITDA margin \u2013 The Group\u2019s estimated EBITDA margin, operating profit before depreciation and impairments compared to net sales, is based on past years actual margins and management\u2019s view on sales and gross margin development. The increase in general cost level has also been taken into account in the development of EBITDA margin.
Discount rate\u2013 Discount rate is the weighted average pre-tax cost of capital (WACC). Weighted average cost of capital represents the total cost of Group\u2019s equity and debt taken into account specific risks related to assets.
Growth rate \u2013 The growth factor used is, at the management\u2019s discre-tion, conservative compared to the group\u2019s longer-term realized revenue level.
Sensitivity analysis
The Group is the most sensitive to impairment loss especially with regard to discount rate growth. At the time of testing the recoverable amount of the Group exceeds 19.5 MEUR from it carrying amount and discount rate may not increase by more than 0.7%-points, after which the need of impairment arises.
11
INTANGIBLE ASSETS
Accounting principles
Intangible assets include customer relations, trademarks, capitalized development expenses, patents, copyrights, li-censes and software. An intangible asset is recognized in the balance sheet only if it is probable that the future economic benefits that are attributable to the asset will flow to the Group, and the cost of the asset can be measured reliably. Intangible assets are stated at cost, amortized on a straight-line basis over the expected useful lives which vary from 3 to 15 years and adjusted for any impairment charges.
Trademarks and other intangible assets whose useful life is estimated to be indefinite are estimated to affect cash flow accumulation for an undefined period of time. The expected useful life for most trademarks is indefinite and therefore they are not amortized. These intangibles are measured at cost less any accumulated impairment loss and not amor-tized. Intangible assets with indefinite useful lives are tested for impairment annually. The valuation of intangible assets acquired in a business combination is based on fair value as at the date of acquisition.
Expected useful lives and indefinite lives of intangible as-sets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, amortization periods are changed accordingly.
2025
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Additions | 0.5 | 0.5 | |||
Disposals | -0.3 | -1.6 | -1.9 | ||
Translation differences | -4.7 | -2.1 | -0.1 | -0.5 | -7.5 |
Acquisition cost Dec. 31 | 61.5 | 33.7 | 2.6 | 7.4 | 105.2 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -2.6 | -6.3 | -9.8 | |
Disposals | 0.3 | 1.6 | 1.9 | ||
Amortization during the period | -0.1 | -0.1 | -0.5 | -0.7 | |
Impairments | -0.5 | -0.5 | |||
Translation differences | 0.0 | 0.1 | 0.1 | 0.2 | |
Accumulated amortization and impairments Dec. 31 | -0.7 | -2.6 | -5.6 | -8.9 | |
Carrying value Jan. 1 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
Carrying value Dec. 31 | 61.5 | 33.0 | 0.0 | 1.8 | 96.4 |
2024
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 64.3 | 35.4 | 3.9 | 10.2 | 113.8 |
Additions | 0.0 | 0.3 | 0.3 | ||
Disposals | -0.1 | -1.3 | -2.2 | -3.6 | |
Reclassifications 1) | -0.3 | 0.6 | 0.3 | ||
Translation differences | 2.0 | 1.2 | 0.1 | 0.1 | 3.4 |
Acquisition cost Dec. 31 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -3.8 | -7.4 | -12.0 | |
Disposals | 0.1 | 1.3 | 1.8 | 3.2 | |
Amortization during the period | -0.1 | -0.7 | -0.9 | ||
Translation differences | -0.2 | -0.2 | 0.0 | -0.3 | |
Accumulated amortization and impairments Dec. 31 | -0.9 | -2.6 | -6.3 | -9.8 | |
Carrying value Jan. 1 | 64.3 | 34.5 | 0.2 | 2.8 | 101.7 |
Carrying value Dec. 31 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
1)Includes reclassifications between intangible and tangible assets.
GOODWILL AND TRADEMARKS WITH INDEFINITE LIVES
EUR million | Total |
2025 | |
Goodwill | 61.5 |
Trademarks with indefinite lives | 33.0 |
Discount rate, % | 10.0 |
2024 | |
Goodwill | 66.3 |
Trademarks with indefinite lives | 35.1 |
Discount rate, % | 9.9 |
Impairment testing of goodwill and trademarks with indefinite lives
The Group is led as a whole and not organized nor managed in inde-pendent divisions. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level. However, according to IFRS, the lowest cash-generating unit (CGU) cannot be larger than an operating segment in the Group\u2019s segment reporting. The Group did announce on 12th December 2024 updating its IFRS segment reporting following the recent strategic organisational changes and from December 2024 onwards, reporting segments \u201cGroup products\u201d and \u201cThird Party Products\u201d will be removed. As a conseguence of the update Rapala VMC as a whole is considered as a single operating segment and a cash generating unit.
The recoverable amount of the CGU is determined based on value-inuse calculations. Cash flow projections, which were used in these
calculations, were based on most recent 5-year financial forecasts pre-pared by the management and approved by the Board. The estimated sales and production volumes are derived from the utilization of existing property, plant and equipment. The most important assumptions on which management has based its cash flow projections are the growth of sales and profitability and discount rate. Discount rate is the weighted average pre-tax cost of capital (WACC). The components of WACC are the riskfree yield rate, market risk premium, industry specific beta, cost of debt, and target capital structure. In the impairment tests prepared in 2025 and 2024, the growth rate used to extrapolate the cash flow be-yond the five-year period is 0%. As a result of the performed impairment tests, no impairment losses have been recognized in 2025 or 2024.
Key assumptions
Sales\u2013 The Group\u2019s estimated sales are based on present and future product assortment and utilization of distribution and manufacturing capacity. In addition, estimated sales are based on long-term growth of industry and further implementation of Group\u2019s strategic objectives. EBITDA margin \u2013 The Group\u2019s estimated EBITDA margin, operating profit before depreciation and impairments compared to net sales, is based on past years actual margins and management\u2019s view on sales and gross margin development. The increase in general cost level has also been taken into account in the development of EBITDA margin.
Discount rate\u2013 Discount rate is the weighted average pre-tax cost of capital (WACC). Weighted average cost of capital represents the total cost of Group\u2019s equity and debt taken into account specific risks related to assets.
Growth rate \u2013 The growth factor used is, at the management\u2019s discre-tion, conservative compared to the group\u2019s longer-term realized revenue level.
Sensitivity analysis
The Group is the most sensitive to impairment loss especially with regard to discount rate growth. At the time of testing the recoverable amount of the Group exceeds 19.5 MEUR from it carrying amount and discount rate may not increase by more than 0.7%-points, after which the need of impairment arises.
11
INTANGIBLE ASSETS
Accounting principles
Intangible assets include customer relations, trademarks, capitalized development expenses, patents, copyrights, li-censes and software. An intangible asset is recognized in the balance sheet only if it is probable that the future economic benefits that are attributable to the asset will flow to the Group, and the cost of the asset can be measured reliably. Intangible assets are stated at cost, amortized on a straight-line basis over the expected useful lives which vary from 3 to 15 years and adjusted for any impairment charges.
Trademarks and other intangible assets whose useful life is estimated to be indefinite are estimated to affect cash flow accumulation for an undefined period of time. The expected useful life for most trademarks is indefinite and therefore they are not amortized. These intangibles are measured at cost less any accumulated impairment loss and not amor-tized. Intangible assets with indefinite useful lives are tested for impairment annually. The valuation of intangible assets acquired in a business combination is based on fair value as at the date of acquisition.
Expected useful lives and indefinite lives of intangible as-sets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, amortization periods are changed accordingly.
2025
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Additions | 0.5 | 0.5 | |||
Disposals | -0.3 | -1.6 | -1.9 | ||
Translation differences | -4.7 | -2.1 | -0.1 | -0.5 | -7.5 |
Acquisition cost Dec. 31 | 61.5 | 33.7 | 2.6 | 7.4 | 105.2 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -2.6 | -6.3 | -9.8 | |
Disposals | 0.3 | 1.6 | 1.9 | ||
Amortization during the period | -0.1 | -0.1 | -0.5 | -0.7 | |
Impairments | -0.5 | -0.5 | |||
Translation differences | 0.0 | 0.1 | 0.1 | 0.2 | |
Accumulated amortization and impairments Dec. 31 | -0.7 | -2.6 | -5.6 | -8.9 | |
Carrying value Jan. 1 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
Carrying value Dec. 31 | 61.5 | 33.0 | 0.0 | 1.8 | 96.4 |
2024
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 64.3 | 35.4 | 3.9 | 10.2 | 113.8 |
Additions | 0.0 | 0.3 | 0.3 | ||
Disposals | -0.1 | -1.3 | -2.2 | -3.6 | |
Reclassifications 1) | -0.3 | 0.6 | 0.3 | ||
Translation differences | 2.0 | 1.2 | 0.1 | 0.1 | 3.4 |
Acquisition cost Dec. 31 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -3.8 | -7.4 | -12.0 | |
Disposals | 0.1 | 1.3 | 1.8 | 3.2 | |
Amortization during the period | -0.1 | -0.7 | -0.9 | ||
Translation differences | -0.2 | -0.2 | 0.0 | -0.3 | |
Accumulated amortization and impairments Dec. 31 | -0.9 | -2.6 | -6.3 | -9.8 | |
Carrying value Jan. 1 | 64.3 | 34.5 | 0.2 | 2.8 | 101.7 |
Carrying value Dec. 31 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
1)Includes reclassifications between intangible and tangible assets.
GOODWILL AND TRADEMARKS WITH INDEFINITE LIVES
EUR million | Total |
2025 | |
Goodwill | 61.5 |
Trademarks with indefinite lives | 33.0 |
Discount rate, % | 10.0 |
2024 | |
Goodwill | 66.3 |
Trademarks with indefinite lives | 35.1 |
Discount rate, % | 9.9 |
Impairment testing of goodwill and trademarks with indefinite lives
The Group is led as a whole and not organized nor managed in inde-pendent divisions. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level. However, according to IFRS, the lowest cash-generating unit (CGU) cannot be larger than an operating segment in the Group\u2019s segment reporting. The Group did announce on 12th December 2024 updating its IFRS segment reporting following the recent strategic organisational changes and from December 2024 onwards, reporting segments \u201cGroup products\u201d and \u201cThird Party Products\u201d will be removed. As a conseguence of the update Rapala VMC as a whole is considered as a single operating segment and a cash generating unit.
The recoverable amount of the CGU is determined based on value-inuse calculations. Cash flow projections, which were used in these
calculations, were based on most recent 5-year financial forecasts pre-pared by the management and approved by the Board. The estimated sales and production volumes are derived from the utilization of existing property, plant and equipment. The most important assumptions on which management has based its cash flow projections are the growth of sales and profitability and discount rate. Discount rate is the weighted average pre-tax cost of capital (WACC). The components of WACC are the riskfree yield rate, market risk premium, industry specific beta, cost of debt, and target capital structure. In the impairment tests prepared in 2025 and 2024, the growth rate used to extrapolate the cash flow be-yond the five-year period is 0%. As a result of the performed impairment tests, no impairment losses have been recognized in 2025 or 2024.
Key assumptions
Sales\u2013 The Group\u2019s estimated sales are based on present and future product assortment and utilization of distribution and manufacturing capacity. In addition, estimated sales are based on long-term growth of industry and further implementation of Group\u2019s strategic objectives. EBITDA margin \u2013 The Group\u2019s estimated EBITDA margin, operating profit before depreciation and impairments compared to net sales, is based on past years actual margins and management\u2019s view on sales and gross margin development. The increase in general cost level has also been taken into account in the development of EBITDA margin.
Discount rate\u2013 Discount rate is the weighted average pre-tax cost of capital (WACC). Weighted average cost of capital represents the total cost of Group\u2019s equity and debt taken into account specific risks related to assets.
Growth rate \u2013 The growth factor used is, at the management\u2019s discre-tion, conservative compared to the group\u2019s longer-term realized revenue level.
Sensitivity analysis
The Group is the most sensitive to impairment loss especially with regard to discount rate growth. At the time of testing the recoverable amount of the Group exceeds 19.5 MEUR from it carrying amount and discount rate may not increase by more than 0.7%-points, after which the need of impairment arises.
12
TANGIBLE ASSETS
Accounting principles
Tangible assets are stated at historical cost, amortized on a straight-line basis over the expected useful life and adjusted for any impairment charges. The valuation of tangible assets acquired in a business combination is based on fair value as at the date of acquisition. Land is not depreciated as it is deemed to have an indefinite life.
Depreciation is based on the following expected useful lives:
Buildings and structures\t10\u201325 years
Machinery and equipment 5\u201310 years
Other tangible assets 3\u201310 years
Expected useful lives of tangible assets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, depreciation periods are changed accord-ingly. Ordinary maintenance and repair costs are expensed as incurred. The cost of significant renewals and improvements are capitalized and depreciated over the remaining useful lives of the related assets. Gains and losses on sales and disposals are determined by comparing the received proceeds with the carrying amount and are included in the income statement in other operating income and expenses.
Depreciation of a tangible asset is discontinued when the tangible asset is classified as being held-for-sale in accor-dance with IFRS 5 standard Non-Current Assets Held-for-sale and Discontinued Operations.
2025
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance pay-ments and construction in progress | Total |
Acquisition cost Jan. 1 | 1.3 | 21.4 | 56.1 | 15.3 | 1.5 | 95.7 |
Additions | 0.1 | 1.8 | 0.6 | 1.5 | 4.0 | |
Disposals | 0.0 | -0.8 | -3.5 | -0.8 | -0.4 | -5.5 |
Reclassifications 1) | 0.1 | 1.0 | 0.2 | -1.2 | 0.0 | |
Translation differences | -0.1 | -0.5 | -0.9 | -0.6 | -0.1 | -2.2 |
Acquisition cost Dec. 31 | 1.3 | 20.3 | 54.4 | 14.7 | 1.3 | 92.0 |
Accumulated depreciation Jan. 1 | -16.0 | -44.1 | -12.8 | -72.8 | ||
Disposals | 0.7 | 2.8 | 0.8 | 4.3 | ||
Reclassifications1) | 0.1 | 0.1 | ||||
Depreciation during the period | -0.9 | -3.0 | -0.9 | -4.8 | ||
Impairments | 0.0 | -0.1 | -0.1 | |||
Translation differences | 0.4 | 0.6 | 0.6 | 1.6 | ||
Accumulated depreciation Dec. 31 | -15.8 | -43.5 | -12.4 | -0.1 | -71.7 | |
Carrying value Jan. 1 | 1.3 | 5.5 | 12.0 | 2.6 | 1.5 | 22.9 |
Carrying value Dec. 31 | 1.3 | 4.6 | 10.9 | 2.3 | 1.2 | 20.3 |
2024
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance pay-ments and construction in progress | Total |
Acquisition cost Jan. 1 | 1.3 | 23.0 | 61.4 | 15.9 | 2.2 | 103.6 |
Additions | 0.0 | 1.4 | 0.5 | 1.8 | 3.7 | |
Disposals | -2.0 | -7.2 | -1.5 | -0.6 | -11.4 | |
Reclassifications 1) | 0.2 | 0.1 | 0.2 | -1.8 | -1.3 | |
Translation differences | 0.0 | 0.2 | 0.4 | 0.2 | 0.0 | 0.9 |
Acquisition cost Dec. 31 | 1.3 | 21.4 | 56.1 | 15.3 | 1.5 | 95.7 |
Accumulated depreciation Jan. 1 | -17.0 | -48.0 | -13.0 | -78.0 | ||
Disposals | 2.0 | 6.8 | 1.4 | 10.2 | ||
Reclassifications1) | 1.2 | 1.2 | ||||
Depreciation during the period | -0.9 | -4.2 | -1.0 | -6.1 | ||
Impairment | 0.3 | 0.3 | ||||
Translation differences | -0.2 | -0.2 | -0.2 | -0.5 | ||
Accumulated depreciation Dec. 31 | -16.0 | -44.1 | -12.8 | -72.8 | ||
Carrying value Jan. 1 | 1.3 | 6.0 | 13.4 | 2.9 | 2.2 | 25.6 |
Carrying value Dec. 31 | 1.3 | 5.5 | 12.0 | 2.6 | 1.5 | 22.9 |
1)Includes reclassifications between intangible and tangible assets and inventories.
26
LEASE CONTRACTS
Accounting principles
Capitalised lease agreements consist mainly of buildings as produc-tion facilities, office premises and warehouses, also the Group has several vehicle lease agreements. The Group recognises a right-of-use (ROU) asset and a lease liability at the commencement of the lease. At the commencement date, a right-of-use asset as defined by IFRS 16 is measured at cost. The Group applies the two available exemptions, which relate to short-term contracts, in which the lease term is less than 12 months, or low-value assets, which are expensed to other operating expenses.
The nominal lease liability is initially measured at the present value of the lease payments over the lease term. The lease payments are discounted using the lessee\u00b4s incremental borrowing rate. The incremental borrowing rates used are relevant interbank rates and the Group\u2019s internal finance margins. The incremental borrowing rates are currency specific.
The initial measurement of the lease payments does not include possible variable elements. Variable lease payments not included in the initial measurement of the lease liability are recognised directly in the statement of income. The lease term is the non-cancellable period of the lease plus period covered by an option to extend or option to terminate if the lessee is reasonably certain to exercise the
extension option. Management judgment based on realistic estimates is used when determining the lease term, especially concerning lease agreements containing termination and purchase options and lease agreements with indefinite lease terms.
Subsequently, the right-of-use assets are measured at initial measurement less accumulated depreciation and impairment losses. The right-of-use assets are depreciated and interest on lease liabilities recognised in the statement of income over the lease term. The lease liabilities are subsequently measured at initial recognition less occurring lease payments that are allocated to the principal.
Lease payments are presented as repayments of liabilities and related interest expenses. The lease payments are presented in the cash flow from financing activities and the interest related to leases are presented in the cash flow from operating activities. Lease payments related to short-term leases, low-value assets and variable payments are presented in the cash flow from operating activities. Modifications to lease agreements may result in adjustments to existing right-of-use assets and lease liabilities. A gain or loss arising from a modification and a termination of a lease agreement is recognised in other operating income or other operating expenses in the statement of income.
RIGHT-OF-USE ASSETS
2025
EUR million | Land and buildings | Other assets | Total |
Acquisition cost Jan 1 | 33.0 | 3.5 | 36.5 |
Additions | 3.1 | 0.7 | 3.8 |
Disposals | -1.6 | -0.4 | -2.0 |
Translation differences | -0.6 | -0.1 | -0.7 |
Acquisition cost Dec 31 | 33.9 | 3.7 | 37.5 |
Accumulated depreciations Jan 1 | -22.5 | -2.3 | -24.8 |
Disposals | 1.6 | 0.4 | 2.0 |
Depreciations during the period | -5.0 | -0.7 | -5.6 |
Translation differences | 0.3 | 0.1 | 0.4 |
Accumulated depreciations Dec 31 | -25.5 | -2.6 | -28.2 |
Carrying value Jan 1 | 10.5 | 1.2 | 11.7 |
Carrying value Dec 31 | 8.3 | 1.0 | 9.4 |
Group\u2019s most material right-of-use assets capitalised consists of build-ings as production facilities, offices and warehouses. Right-of-use asset section Other assets consists mainly of cars.
2024
EUR million | Land and buildings | Other assets | Total |
Acquisition cost Jan 1 | 33.9 | 4.0 | 38.0 |
Additions | 3.7 | 0.8 | 4.5 |
Disposals | -4.7 | -1.3 | -6.1 |
Translation differences | 0.1 | 0.0 | 0.1 |
Acquisition cost Dec 31 | 33.0 | 3.5 | 36.5 |
Accumulated depreciations Jan 1 | -21.7 | -2.8 | -24.5 |
Additions | 0.2 | 0.0 | 0.2 |
Disposals | 3.8 | 1.1 | 4.9 |
Depreciations during the period | -4.8 | -0.7 | -5.5 |
Translation differences | 0.0 | 0.0 | 0.0 |
Accumulated depreciations Dec 31 | -22.5 | -2.3 | -24.8 |
Carrying value Jan 1 | 12.2 | 1.3 | 13.5 |
Carrying value Dec 31 | 10.5 | 1.2 | 11.7 |
Group\u2019s most material right-of-use assets capitalised consists of build-ings as production facilities, offices and warehouses. Right-of-use asset section Other assets consists mainly of cars.
Off-balance sheet lease commitmentsTHE GROUP AS A LESSEE
EUR million | 2025 | 2024 |
Minimum future lease payments on leases | 0.2 | 0.3 |
The non-cancellable lease agreements include short-term and other lease contracts that are not included in lease liabilities. Other rents include IT equipment leases that are not material.
Maturity of the group\u2019s financial liabilities more detailed in the note 21. Lease liabilities more detailed in the note 23.
11
INTANGIBLE ASSETS
Accounting principles
Intangible assets include customer relations, trademarks, capitalized development expenses, patents, copyrights, li-censes and software. An intangible asset is recognized in the balance sheet only if it is probable that the future economic benefits that are attributable to the asset will flow to the Group, and the cost of the asset can be measured reliably. Intangible assets are stated at cost, amortized on a straight-line basis over the expected useful lives which vary from 3 to 15 years and adjusted for any impairment charges.
Trademarks and other intangible assets whose useful life is estimated to be indefinite are estimated to affect cash flow accumulation for an undefined period of time. The expected useful life for most trademarks is indefinite and therefore they are not amortized. These intangibles are measured at cost less any accumulated impairment loss and not amor-tized. Intangible assets with indefinite useful lives are tested for impairment annually. The valuation of intangible assets acquired in a business combination is based on fair value as at the date of acquisition.
Expected useful lives and indefinite lives of intangible as-sets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, amortization periods are changed accordingly.
2025
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Additions | 0.5 | 0.5 | |||
Disposals | -0.3 | -1.6 | -1.9 | ||
Translation differences | -4.7 | -2.1 | -0.1 | -0.5 | -7.5 |
Acquisition cost Dec. 31 | 61.5 | 33.7 | 2.6 | 7.4 | 105.2 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -2.6 | -6.3 | -9.8 | |
Disposals | 0.3 | 1.6 | 1.9 | ||
Amortization during the period | -0.1 | -0.1 | -0.5 | -0.7 | |
Impairments | -0.5 | -0.5 | |||
Translation differences | 0.0 | 0.1 | 0.1 | 0.2 | |
Accumulated amortization and impairments Dec. 31 | -0.7 | -2.6 | -5.6 | -8.9 | |
Carrying value Jan. 1 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
Carrying value Dec. 31 | 61.5 | 33.0 | 0.0 | 1.8 | 96.4 |
2024
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 64.3 | 35.4 | 3.9 | 10.2 | 113.8 |
Additions | 0.0 | 0.3 | 0.3 | ||
Disposals | -0.1 | -1.3 | -2.2 | -3.6 | |
Reclassifications 1) | -0.3 | 0.6 | 0.3 | ||
Translation differences | 2.0 | 1.2 | 0.1 | 0.1 | 3.4 |
Acquisition cost Dec. 31 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -3.8 | -7.4 | -12.0 | |
Disposals | 0.1 | 1.3 | 1.8 | 3.2 | |
Amortization during the period | -0.1 | -0.7 | -0.9 | ||
Translation differences | -0.2 | -0.2 | 0.0 | -0.3 | |
Accumulated amortization and impairments Dec. 31 | -0.9 | -2.6 | -6.3 | -9.8 | |
Carrying value Jan. 1 | 64.3 | 34.5 | 0.2 | 2.8 | 101.7 |
Carrying value Dec. 31 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
1)Includes reclassifications between intangible and tangible assets.
GOODWILL AND TRADEMARKS WITH INDEFINITE LIVES
EUR million | Total |
2025 | |
Goodwill | 61.5 |
Trademarks with indefinite lives | 33.0 |
Discount rate, % | 10.0 |
2024 | |
Goodwill | 66.3 |
Trademarks with indefinite lives | 35.1 |
Discount rate, % | 9.9 |
Impairment testing of goodwill and trademarks with indefinite lives
The Group is led as a whole and not organized nor managed in inde-pendent divisions. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level. However, according to IFRS, the lowest cash-generating unit (CGU) cannot be larger than an operating segment in the Group\u2019s segment reporting. The Group did announce on 12th December 2024 updating its IFRS segment reporting following the recent strategic organisational changes and from December 2024 onwards, reporting segments \u201cGroup products\u201d and \u201cThird Party Products\u201d will be removed. As a conseguence of the update Rapala VMC as a whole is considered as a single operating segment and a cash generating unit.
The recoverable amount of the CGU is determined based on value-inuse calculations. Cash flow projections, which were used in these
calculations, were based on most recent 5-year financial forecasts pre-pared by the management and approved by the Board. The estimated sales and production volumes are derived from the utilization of existing property, plant and equipment. The most important assumptions on which management has based its cash flow projections are the growth of sales and profitability and discount rate. Discount rate is the weighted average pre-tax cost of capital (WACC). The components of WACC are the riskfree yield rate, market risk premium, industry specific beta, cost of debt, and target capital structure. In the impairment tests prepared in 2025 and 2024, the growth rate used to extrapolate the cash flow be-yond the five-year period is 0%. As a result of the performed impairment tests, no impairment losses have been recognized in 2025 or 2024.
Key assumptions
Sales\u2013 The Group\u2019s estimated sales are based on present and future product assortment and utilization of distribution and manufacturing capacity. In addition, estimated sales are based on long-term growth of industry and further implementation of Group\u2019s strategic objectives. EBITDA margin \u2013 The Group\u2019s estimated EBITDA margin, operating profit before depreciation and impairments compared to net sales, is based on past years actual margins and management\u2019s view on sales and gross margin development. The increase in general cost level has also been taken into account in the development of EBITDA margin.
Discount rate\u2013 Discount rate is the weighted average pre-tax cost of capital (WACC). Weighted average cost of capital represents the total cost of Group\u2019s equity and debt taken into account specific risks related to assets.
Growth rate \u2013 The growth factor used is, at the management\u2019s discre-tion, conservative compared to the group\u2019s longer-term realized revenue level.
Sensitivity analysis
The Group is the most sensitive to impairment loss especially with regard to discount rate growth. At the time of testing the recoverable amount of the Group exceeds 19.5 MEUR from it carrying amount and discount rate may not increase by more than 0.7%-points, after which the need of impairment arises.
11
INTANGIBLE ASSETS
Accounting principles
Intangible assets include customer relations, trademarks, capitalized development expenses, patents, copyrights, li-censes and software. An intangible asset is recognized in the balance sheet only if it is probable that the future economic benefits that are attributable to the asset will flow to the Group, and the cost of the asset can be measured reliably. Intangible assets are stated at cost, amortized on a straight-line basis over the expected useful lives which vary from 3 to 15 years and adjusted for any impairment charges.
Trademarks and other intangible assets whose useful life is estimated to be indefinite are estimated to affect cash flow accumulation for an undefined period of time. The expected useful life for most trademarks is indefinite and therefore they are not amortized. These intangibles are measured at cost less any accumulated impairment loss and not amor-tized. Intangible assets with indefinite useful lives are tested for impairment annually. The valuation of intangible assets acquired in a business combination is based on fair value as at the date of acquisition.
Expected useful lives and indefinite lives of intangible as-sets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, amortization periods are changed accordingly.
2025
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Additions | 0.5 | 0.5 | |||
Disposals | -0.3 | -1.6 | -1.9 | ||
Translation differences | -4.7 | -2.1 | -0.1 | -0.5 | -7.5 |
Acquisition cost Dec. 31 | 61.5 | 33.7 | 2.6 | 7.4 | 105.2 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -2.6 | -6.3 | -9.8 | |
Disposals | 0.3 | 1.6 | 1.9 | ||
Amortization during the period | -0.1 | -0.1 | -0.5 | -0.7 | |
Impairments | -0.5 | -0.5 | |||
Translation differences | 0.0 | 0.1 | 0.1 | 0.2 | |
Accumulated amortization and impairments Dec. 31 | -0.7 | -2.6 | -5.6 | -8.9 | |
Carrying value Jan. 1 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
Carrying value Dec. 31 | 61.5 | 33.0 | 0.0 | 1.8 | 96.4 |
2024
EUR million | Goodwill | Trademarks | Customer relations | Other intangible assets | Total |
Acquisition cost Jan. 1 | 64.3 | 35.4 | 3.9 | 10.2 | 113.8 |
Additions | 0.0 | 0.3 | 0.3 | ||
Disposals | -0.1 | -1.3 | -2.2 | -3.6 | |
Reclassifications 1) | -0.3 | 0.6 | 0.3 | ||
Translation differences | 2.0 | 1.2 | 0.1 | 0.1 | 3.4 |
Acquisition cost Dec. 31 | 66.3 | 36.1 | 2.7 | 9.0 | 114.1 |
Accumulated amortization and impairments Jan. 1 | -0.9 | -3.8 | -7.4 | -12.0 | |
Disposals | 0.1 | 1.3 | 1.8 | 3.2 | |
Amortization during the period | -0.1 | -0.7 | -0.9 | ||
Translation differences | -0.2 | -0.2 | 0.0 | -0.3 | |
Accumulated amortization and impairments Dec. 31 | -0.9 | -2.6 | -6.3 | -9.8 | |
Carrying value Jan. 1 | 64.3 | 34.5 | 0.2 | 2.8 | 101.7 |
Carrying value Dec. 31 | 66.3 | 35.1 | 0.1 | 2.7 | 104.2 |
1)Includes reclassifications between intangible and tangible assets.
GOODWILL AND TRADEMARKS WITH INDEFINITE LIVES
EUR million | Total |
2025 | |
Goodwill | 61.5 |
Trademarks with indefinite lives | 33.0 |
Discount rate, % | 10.0 |
2024 | |
Goodwill | 66.3 |
Trademarks with indefinite lives | 35.1 |
Discount rate, % | 9.9 |
Impairment testing of goodwill and trademarks with indefinite lives
The Group is led as a whole and not organized nor managed in inde-pendent divisions. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level. However, according to IFRS, the lowest cash-generating unit (CGU) cannot be larger than an operating segment in the Group\u2019s segment reporting. The Group did announce on 12th December 2024 updating its IFRS segment reporting following the recent strategic organisational changes and from December 2024 onwards, reporting segments \u201cGroup products\u201d and \u201cThird Party Products\u201d will be removed. As a conseguence of the update Rapala VMC as a whole is considered as a single operating segment and a cash generating unit.
The recoverable amount of the CGU is determined based on value-inuse calculations. Cash flow projections, which were used in these
calculations, were based on most recent 5-year financial forecasts pre-pared by the management and approved by the Board. The estimated sales and production volumes are derived from the utilization of existing property, plant and equipment. The most important assumptions on which management has based its cash flow projections are the growth of sales and profitability and discount rate. Discount rate is the weighted average pre-tax cost of capital (WACC). The components of WACC are the riskfree yield rate, market risk premium, industry specific beta, cost of debt, and target capital structure. In the impairment tests prepared in 2025 and 2024, the growth rate used to extrapolate the cash flow be-yond the five-year period is 0%. As a result of the performed impairment tests, no impairment losses have been recognized in 2025 or 2024.
Key assumptions
Sales\u2013 The Group\u2019s estimated sales are based on present and future product assortment and utilization of distribution and manufacturing capacity. In addition, estimated sales are based on long-term growth of industry and further implementation of Group\u2019s strategic objectives. EBITDA margin \u2013 The Group\u2019s estimated EBITDA margin, operating profit before depreciation and impairments compared to net sales, is based on past years actual margins and management\u2019s view on sales and gross margin development. The increase in general cost level has also been taken into account in the development of EBITDA margin.
Discount rate\u2013 Discount rate is the weighted average pre-tax cost of capital (WACC). Weighted average cost of capital represents the total cost of Group\u2019s equity and debt taken into account specific risks related to assets.
Growth rate \u2013 The growth factor used is, at the management\u2019s discre-tion, conservative compared to the group\u2019s longer-term realized revenue level.
Sensitivity analysis
The Group is the most sensitive to impairment loss especially with regard to discount rate growth. At the time of testing the recoverable amount of the Group exceeds 19.5 MEUR from it carrying amount and discount rate may not increase by more than 0.7%-points, after which the need of impairment arises.
GOODWILL AND TRADEMARKS WITH INDEFINITE LIVES
EUR million | Total |
2025 | |
Goodwill | 61.5 |
Trademarks with indefinite lives | 33.0 |
Discount rate, % | 10.0 |
2024 | |
Goodwill | 66.3 |
Trademarks with indefinite lives | 35.1 |
Discount rate, % | 9.9 |
Impairment testing of goodwill and trademarks with indefinite lives
The Group is led as a whole and not organized nor managed in inde-pendent divisions. Most of the units are also strongly interlinked i.e. some units do not have a sales or a production organization or some other functions or operations needed to operate on a stand-alone basis. As a consequence, goodwill and trademarks with indefinite lives are tested on the Group level. However, according to IFRS, the lowest cash-generating unit (CGU) cannot be larger than an operating segment in the Group\u2019s segment reporting. The Group did announce on 12th December 2024 updating its IFRS segment reporting following the recent strategic organisational changes and from December 2024 onwards, reporting segments \u201cGroup products\u201d and \u201cThird Party Products\u201d will be removed. As a conseguence of the update Rapala VMC as a whole is considered as a single operating segment and a cash generating unit.
The recoverable amount of the CGU is determined based on value-inuse calculations. Cash flow projections, which were used in these
calculations, were based on most recent 5-year financial forecasts pre-pared by the management and approved by the Board. The estimated sales and production volumes are derived from the utilization of existing property, plant and equipment. The most important assumptions on which management has based its cash flow projections are the growth of sales and profitability and discount rate. Discount rate is the weighted average pre-tax cost of capital (WACC). The components of WACC are the riskfree yield rate, market risk premium, industry specific beta, cost of debt, and target capital structure. In the impairment tests prepared in 2025 and 2024, the growth rate used to extrapolate the cash flow be-yond the five-year period is 0%. As a result of the performed impairment tests, no impairment losses have been recognized in 2025 or 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__86": { "value": "12
TANGIBLE ASSETS
Accounting principles
Tangible assets are stated at historical cost, amortized on a straight-line basis over the expected useful life and adjusted for any impairment charges. The valuation of tangible assets acquired in a business combination is based on fair value as at the date of acquisition. Land is not depreciated as it is deemed to have an indefinite life.
Depreciation is based on the following expected useful lives:
Buildings and structures\t10\u201325 years
Machinery and equipment 5\u201310 years
Other tangible assets 3\u201310 years
Expected useful lives of tangible assets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, depreciation periods are changed accord-ingly. Ordinary maintenance and repair costs are expensed as incurred. The cost of significant renewals and improvements are capitalized and depreciated over the remaining useful lives of the related assets. Gains and losses on sales and disposals are determined by comparing the received proceeds with the carrying amount and are included in the income statement in other operating income and expenses.
Depreciation of a tangible asset is discontinued when the tangible asset is classified as being held-for-sale in accor-dance with IFRS 5 standard Non-Current Assets Held-for-sale and Discontinued Operations.
2025
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance pay-ments and construction in progress | Total |
Acquisition cost Jan. 1 | 1.3 | 21.4 | 56.1 | 15.3 | 1.5 | 95.7 |
Additions | 0.1 | 1.8 | 0.6 | 1.5 | 4.0 | |
Disposals | 0.0 | -0.8 | -3.5 | -0.8 | -0.4 | -5.5 |
Reclassifications 1) | 0.1 | 1.0 | 0.2 | -1.2 | 0.0 | |
Translation differences | -0.1 | -0.5 | -0.9 | -0.6 | -0.1 | -2.2 |
Acquisition cost Dec. 31 | 1.3 | 20.3 | 54.4 | 14.7 | 1.3 | 92.0 |
Accumulated depreciation Jan. 1 | -16.0 | -44.1 | -12.8 | -72.8 | ||
Disposals | 0.7 | 2.8 | 0.8 | 4.3 | ||
Reclassifications1) | 0.1 | 0.1 | ||||
Depreciation during the period | -0.9 | -3.0 | -0.9 | -4.8 | ||
Impairments | 0.0 | -0.1 | -0.1 | |||
Translation differences | 0.4 | 0.6 | 0.6 | 1.6 | ||
Accumulated depreciation Dec. 31 | -15.8 | -43.5 | -12.4 | -0.1 | -71.7 | |
Carrying value Jan. 1 | 1.3 | 5.5 | 12.0 | 2.6 | 1.5 | 22.9 |
Carrying value Dec. 31 | 1.3 | 4.6 | 10.9 | 2.3 | 1.2 | 20.3 |
2024
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance pay-ments and construction in progress | Total |
Acquisition cost Jan. 1 | 1.3 | 23.0 | 61.4 | 15.9 | 2.2 | 103.6 |
Additions | 0.0 | 1.4 | 0.5 | 1.8 | 3.7 | |
Disposals | -2.0 | -7.2 | -1.5 | -0.6 | -11.4 | |
Reclassifications 1) | 0.2 | 0.1 | 0.2 | -1.8 | -1.3 | |
Translation differences | 0.0 | 0.2 | 0.4 | 0.2 | 0.0 | 0.9 |
Acquisition cost Dec. 31 | 1.3 | 21.4 | 56.1 | 15.3 | 1.5 | 95.7 |
Accumulated depreciation Jan. 1 | -17.0 | -48.0 | -13.0 | -78.0 | ||
Disposals | 2.0 | 6.8 | 1.4 | 10.2 | ||
Reclassifications1) | 1.2 | 1.2 | ||||
Depreciation during the period | -0.9 | -4.2 | -1.0 | -6.1 | ||
Impairment | 0.3 | 0.3 | ||||
Translation differences | -0.2 | -0.2 | -0.2 | -0.5 | ||
Accumulated depreciation Dec. 31 | -16.0 | -44.1 | -12.8 | -72.8 | ||
Carrying value Jan. 1 | 1.3 | 6.0 | 13.4 | 2.9 | 2.2 | 25.6 |
Carrying value Dec. 31 | 1.3 | 5.5 | 12.0 | 2.6 | 1.5 | 22.9 |
1)Includes reclassifications between intangible and tangible assets and inventories.
12
TANGIBLE ASSETS
Accounting principles
Tangible assets are stated at historical cost, amortized on a straight-line basis over the expected useful life and adjusted for any impairment charges. The valuation of tangible assets acquired in a business combination is based on fair value as at the date of acquisition. Land is not depreciated as it is deemed to have an indefinite life.
Depreciation is based on the following expected useful lives:
Buildings and structures\t10\u201325 years
Machinery and equipment 5\u201310 years
Other tangible assets 3\u201310 years
Expected useful lives of tangible assets are reviewed at each balance sheet date and, where they differ significantly from previous estimates, depreciation periods are changed accord-ingly. Ordinary maintenance and repair costs are expensed as incurred. The cost of significant renewals and improvements are capitalized and depreciated over the remaining useful lives of the related assets. Gains and losses on sales and disposals are determined by comparing the received proceeds with the carrying amount and are included in the income statement in other operating income and expenses.
Depreciation of a tangible asset is discontinued when the tangible asset is classified as being held-for-sale in accor-dance with IFRS 5 standard Non-Current Assets Held-for-sale and Discontinued Operations.
2025
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance pay-ments and construction in progress | Total |
Acquisition cost Jan. 1 | 1.3 | 21.4 | 56.1 | 15.3 | 1.5 | 95.7 |
Additions | 0.1 | 1.8 | 0.6 | 1.5 | 4.0 | |
Disposals | 0.0 | -0.8 | -3.5 | -0.8 | -0.4 | -5.5 |
Reclassifications 1) | 0.1 | 1.0 | 0.2 | -1.2 | 0.0 | |
Translation differences | -0.1 | -0.5 | -0.9 | -0.6 | -0.1 | -2.2 |
Acquisition cost Dec. 31 | 1.3 | 20.3 | 54.4 | 14.7 | 1.3 | 92.0 |
Accumulated depreciation Jan. 1 | -16.0 | -44.1 | -12.8 | -72.8 | ||
Disposals | 0.7 | 2.8 | 0.8 | 4.3 | ||
Reclassifications1) | 0.1 | 0.1 | ||||
Depreciation during the period | -0.9 | -3.0 | -0.9 | -4.8 | ||
Impairments | 0.0 | -0.1 | -0.1 | |||
Translation differences | 0.4 | 0.6 | 0.6 | 1.6 | ||
Accumulated depreciation Dec. 31 | -15.8 | -43.5 | -12.4 | -0.1 | -71.7 | |
Carrying value Jan. 1 | 1.3 | 5.5 | 12.0 | 2.6 | 1.5 | 22.9 |
Carrying value Dec. 31 | 1.3 | 4.6 | 10.9 | 2.3 | 1.2 | 20.3 |
2024
EUR million | Land | Buildings and structures | Machinery and equipment | Other tangible assets | Advance pay-ments and construction in progress | Total |
Acquisition cost Jan. 1 | 1.3 | 23.0 | 61.4 | 15.9 | 2.2 | 103.6 |
Additions | 0.0 | 1.4 | 0.5 | 1.8 | 3.7 | |
Disposals | -2.0 | -7.2 | -1.5 | -0.6 | -11.4 | |
Reclassifications 1) | 0.2 | 0.1 | 0.2 | -1.8 | -1.3 | |
Translation differences | 0.0 | 0.2 | 0.4 | 0.2 | 0.0 | 0.9 |
Acquisition cost Dec. 31 | 1.3 | 21.4 | 56.1 | 15.3 | 1.5 | 95.7 |
Accumulated depreciation Jan. 1 | -17.0 | -48.0 | -13.0 | -78.0 | ||
Disposals | 2.0 | 6.8 | 1.4 | 10.2 | ||
Reclassifications1) | 1.2 | 1.2 | ||||
Depreciation during the period | -0.9 | -4.2 | -1.0 | -6.1 | ||
Impairment | 0.3 | 0.3 | ||||
Translation differences | -0.2 | -0.2 | -0.2 | -0.5 | ||
Accumulated depreciation Dec. 31 | -16.0 | -44.1 | -12.8 | -72.8 | ||
Carrying value Jan. 1 | 1.3 | 6.0 | 13.4 | 2.9 | 2.2 | 25.6 |
Carrying value Dec. 31 | 1.3 | 5.5 | 12.0 | 2.6 | 1.5 | 22.9 |
1)Includes reclassifications between intangible and tangible assets and inventories.
13
INVESTMENTS IN ASSOCIATES
The Group has a 33.3% interest in associate Lanimo O\u00fc, an unlisted company domiciled in Estonia. Its main activity is producing leather-haberdashery. The carrying amount does not include goodwill or impair-ments. Lanimo O\u00fc\u2019s figures are based on the information for the period ending on September 30, due to differences in reporting time schedule.
Associated companies are consolidated according to the equity method.
EUR million | 2025 | 2024 |
Acquisition cost Jan. 1 | 0.0 | 0.0 |
Share of profit/loss | 0.0 | 0.0 |
Translation differences | 0.0 | 0.0 |
Acquisition cost Dec. 31 | 0.0 | 0.0 |
INFORMATION ON ASSOCIATES
Lanimo O\u00fc | ||
EUR Million | 2025 | 2024 |
Net sales | 0.2 | 0.2 |
Purchases and other expenses | -0.2 | -0.2 |
Depreciation | 0.0 | 0.0 |
Interest income and expenses | 0.0 | 0.0 |
Net profit for the period | 0.0 | 0.0 |
Non-current assets | 0.0 | 0.0 |
Current assets | 0.1 | 0.1 |
Of which cash and cash equivalents | 0.0 | 0.0 |
Non-current liabilities | 0.0 | 0.0 |
Of which financial liabilities | 0.0 | 0.0 |
Current liabilities | 0.0 | 0.0 |
Net assets of associate | 0.0 | 0.0 |
Net assets belonging to Rapala Group | 0.0 | 0.0 |
13
INVESTMENTS IN ASSOCIATES
The Group has a 33.3% interest in associate Lanimo O\u00fc, an unlisted company domiciled in Estonia. Its main activity is producing leather-haberdashery. The carrying amount does not include goodwill or impair-ments. Lanimo O\u00fc\u2019s figures are based on the information for the period ending on September 30, due to differences in reporting time schedule.
Associated companies are consolidated according to the equity method.
EUR million | 2025 | 2024 |
Acquisition cost Jan. 1 | 0.0 | 0.0 |
Share of profit/loss | 0.0 | 0.0 |
Translation differences | 0.0 | 0.0 |
Acquisition cost Dec. 31 | 0.0 | 0.0 |
INFORMATION ON ASSOCIATES
Lanimo O\u00fc | ||
EUR Million | 2025 | 2024 |
Net sales | 0.2 | 0.2 |
Purchases and other expenses | -0.2 | -0.2 |
Depreciation | 0.0 | 0.0 |
Interest income and expenses | 0.0 | 0.0 |
Net profit for the period | 0.0 | 0.0 |
Non-current assets | 0.0 | 0.0 |
Current assets | 0.1 | 0.1 |
Of which cash and cash equivalents | 0.0 | 0.0 |
Non-current liabilities | 0.0 | 0.0 |
Of which financial liabilities | 0.0 | 0.0 |
Current liabilities | 0.0 | 0.0 |
Net assets of associate | 0.0 | 0.0 |
Net assets belonging to Rapala Group | 0.0 | 0.0 |
13
INVESTMENTS IN ASSOCIATES
The Group has a 33.3% interest in associate Lanimo O\u00fc, an unlisted company domiciled in Estonia. Its main activity is producing leather-haberdashery. The carrying amount does not include goodwill or impair-ments. Lanimo O\u00fc\u2019s figures are based on the information for the period ending on September 30, due to differences in reporting time schedule.
Associated companies are consolidated according to the equity method.
EUR million | 2025 | 2024 |
Acquisition cost Jan. 1 | 0.0 | 0.0 |
Share of profit/loss | 0.0 | 0.0 |
Translation differences | 0.0 | 0.0 |
Acquisition cost Dec. 31 | 0.0 | 0.0 |
INFORMATION ON ASSOCIATES
Lanimo O\u00fc | ||
EUR Million | 2025 | 2024 |
Net sales | 0.2 | 0.2 |
Purchases and other expenses | -0.2 | -0.2 |
Depreciation | 0.0 | 0.0 |
Interest income and expenses | 0.0 | 0.0 |
Net profit for the period | 0.0 | 0.0 |
Non-current assets | 0.0 | 0.0 |
Current assets | 0.1 | 0.1 |
Of which cash and cash equivalents | 0.0 | 0.0 |
Non-current liabilities | 0.0 | 0.0 |
Of which financial liabilities | 0.0 | 0.0 |
Current liabilities | 0.0 | 0.0 |
Net assets of associate | 0.0 | 0.0 |
Net assets belonging to Rapala Group | 0.0 | 0.0 |
14
OTHER SHARES
EUR million | 2025 | 2024 |
Carrying value Jan 1 | 0.1 | 0.2 |
Disposals | - | -0,1 |
Carrying value Dec. 31 | 0.1 | 0.1 |
Other shares comprise of unlisted shares. The most significant,
As Oy Tahkon Eagle, was sold during 2024.
15
RECEIVABLES
Accounting principles
Trade receivables are carried at their anticipated realizable value, which is the original invoice amount less an estimated valuation allowance. Group\u2019s expected credit loss is evaluated based on trade receivables of the lifetime expected credit losses according to IFRS 9. Group has analyzed individually receivables, which are under juridical proceedings and has decided not to combine these credit loss provisions into ex-pected credit loss model. Group\u2019s total credit loss provision is combination of individual cases provisions and evaluated expected credit loss. The probability of a credit loss is calcu-lated by the percentage determined for each age group by the specified percentages based on historically realized payments and recorded historical credit loss. The simplified approach is used for evaluation.
EUR million | 2025 | 2024 |
Non-current receivables | ||
Interest-bearing | ||
Loan receivables | 0.7 | 0.7 |
Other interest-bearing receivables | 0.0 | 0.0 |
Non-interest-bearing | ||
Other receivables | 0.3 | 0.3 |
Trade receivables | 0.0 | 0.0 |
Current receivables | ||
Non-interest-bearing | ||
Trade receivables | 23.1 | 24.4 |
Derivatives | 0.1 | 0.1 |
VAT receivable | 1.4 | 1.1 |
Other prepaid expenses and accrued income | 3.1 | 3.3 |
Other receivables | 1.3 | 2.4 |
Total | 30.0 | 32.2 |
Fair values of financial assets are presented in the note 22.
The average interest rate of non-current loan receivables was 3.50% (2024: 3.50%).
ALLOWANCES BOOKED FOR TRADE RECEIVABLES
EUR Million | 2025 | 2024 |
Allowance for trade receivables Jan. 1 | 1.1 | 1.6 |
Additions | 0.5 | 0.3 |
Deductions | -0.3 | -0.5 |
Recovery | -0.2 | -0.4 |
Translation differences | 0.0 | 0.0 |
Allowance for trade receivables Dec 31 | 1.1 | 1.1 |
In most cases allowances are determined individually, when there is objective evidence (such as significant overdue of receivables and un-successful dunning attempts or known financial difficulties and thus increased probability of customer insolvency) that the Group will not be able to collect all amounts due according to the original terms of the receivables.
15
RECEIVABLES
Accounting principles
Trade receivables are carried at their anticipated realizable value, which is the original invoice amount less an estimated valuation allowance. Group\u2019s expected credit loss is evaluated based on trade receivables of the lifetime expected credit losses according to IFRS 9. Group has analyzed individually receivables, which are under juridical proceedings and has decided not to combine these credit loss provisions into ex-pected credit loss model. Group\u2019s total credit loss provision is combination of individual cases provisions and evaluated expected credit loss. The probability of a credit loss is calcu-lated by the percentage determined for each age group by the specified percentages based on historically realized payments and recorded historical credit loss. The simplified approach is used for evaluation.
EUR million | 2025 | 2024 |
Non-current receivables | ||
Interest-bearing | ||
Loan receivables | 0.7 | 0.7 |
Other interest-bearing receivables | 0.0 | 0.0 |
Non-interest-bearing | ||
Other receivables | 0.3 | 0.3 |
Trade receivables | 0.0 | 0.0 |
Current receivables | ||
Non-interest-bearing | ||
Trade receivables | 23.1 | 24.4 |
Derivatives | 0.1 | 0.1 |
VAT receivable | 1.4 | 1.1 |
Other prepaid expenses and accrued income | 3.1 | 3.3 |
Other receivables | 1.3 | 2.4 |
Total | 30.0 | 32.2 |
Fair values of financial assets are presented in the note 22.
The average interest rate of non-current loan receivables was 3.50% (2024: 3.50%).
ALLOWANCES BOOKED FOR TRADE RECEIVABLES
EUR Million | 2025 | 2024 |
Allowance for trade receivables Jan. 1 | 1.1 | 1.6 |
Additions | 0.5 | 0.3 |
Deductions | -0.3 | -0.5 |
Recovery | -0.2 | -0.4 |
Translation differences | 0.0 | 0.0 |
Allowance for trade receivables Dec 31 | 1.1 | 1.1 |
In most cases allowances are determined individually, when there is objective evidence (such as significant overdue of receivables and un-successful dunning attempts or known financial difficulties and thus increased probability of customer insolvency) that the Group will not be able to collect all amounts due according to the original terms of the receivables.
15
RECEIVABLES
Accounting principles
Trade receivables are carried at their anticipated realizable value, which is the original invoice amount less an estimated valuation allowance. Group\u2019s expected credit loss is evaluated based on trade receivables of the lifetime expected credit losses according to IFRS 9. Group has analyzed individually receivables, which are under juridical proceedings and has decided not to combine these credit loss provisions into ex-pected credit loss model. Group\u2019s total credit loss provision is combination of individual cases provisions and evaluated expected credit loss. The probability of a credit loss is calcu-lated by the percentage determined for each age group by the specified percentages based on historically realized payments and recorded historical credit loss. The simplified approach is used for evaluation.
EUR million | 2025 | 2024 |
Non-current receivables | ||
Interest-bearing | ||
Loan receivables | 0.7 | 0.7 |
Other interest-bearing receivables | 0.0 | 0.0 |
Non-interest-bearing | ||
Other receivables | 0.3 | 0.3 |
Trade receivables | 0.0 | 0.0 |
Current receivables | ||
Non-interest-bearing | ||
Trade receivables | 23.1 | 24.4 |
Derivatives | 0.1 | 0.1 |
VAT receivable | 1.4 | 1.1 |
Other prepaid expenses and accrued income | 3.1 | 3.3 |
Other receivables | 1.3 | 2.4 |
Total | 30.0 | 32.2 |
Fair values of financial assets are presented in the note 22.
The average interest rate of non-current loan receivables was 3.50% (2024: 3.50%).
ALLOWANCES BOOKED FOR TRADE RECEIVABLES
EUR Million | 2025 | 2024 |
Allowance for trade receivables Jan. 1 | 1.1 | 1.6 |
Additions | 0.5 | 0.3 |
Deductions | -0.3 | -0.5 |
Recovery | -0.2 | -0.4 |
Translation differences | 0.0 | 0.0 |
Allowance for trade receivables Dec 31 | 1.1 | 1.1 |
In most cases allowances are determined individually, when there is objective evidence (such as significant overdue of receivables and un-successful dunning attempts or known financial difficulties and thus increased probability of customer insolvency) that the Group will not be able to collect all amounts due according to the original terms of the receivables.
ALLOWANCES BOOKED FOR TRADE RECEIVABLES
EUR Million | 2025 | 2024 |
Allowance for trade receivables Jan. 1 | 1.1 | 1.6 |
Additions | 0.5 | 0.3 |
Deductions | -0.3 | -0.5 |
Recovery | -0.2 | -0.4 |
Translation differences | 0.0 | 0.0 |
Allowance for trade receivables Dec 31 | 1.1 | 1.1 |
In most cases allowances are determined individually, when there is objective evidence (such as significant overdue of receivables and un-successful dunning attempts or known financial difficulties and thus increased probability of customer insolvency) that the Group will not be able to collect all amounts due according to the original terms of the receivables.
Trade loss provision from expected credit loss model, %
% | 2025 |
Neither past due nor impaired | 0.2 |
Past due but not impaired | |
Less than 1 month | 0.9 |
1-3 months | 6.0 |
3-6 months | 11.0 |
Over 6 months | 20-100 |
16
INVENTORIES
Accounting principles
Inventories are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (FIFO) method or, alternatively, weighted average cost where it approximates FIFO. The cost of finished goods and work in progress comprises raw materials, direct labor, depreciation, other direct costs and related production overheads, but excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Inventories are presented net of net realizable value allowance recognized for obsolete and slow-moving inventories.
EUR million | 2025 | 2024 |
Raw material | 9.4 | 10.0 |
Work in progress | 8.4 | 8.4 |
Finished products | 74.7 | 72.9 |
Net realizable value allowance | -8.1 | -7.0 |
Total | 84.4 | 84.2 |
16
INVENTORIES
Accounting principles
Inventories are valued at the lower of cost or net realizable value. Cost is determined by the first-in, first-out (FIFO) method or, alternatively, weighted average cost where it approximates FIFO. The cost of finished goods and work in progress comprises raw materials, direct labor, depreciation, other direct costs and related production overheads, but excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Inventories are presented net of net realizable value allowance recognized for obsolete and slow-moving inventories.
EUR million | 2025 | 2024 |
Raw material | 9.4 | 10.0 |
Work in progress | 8.4 | 8.4 |
Finished products | 74.7 | 72.9 |
Net realizable value allowance | -8.1 | -7.0 |
Total | 84.4 | 84.2 |
17
CASH AND CASH EQUIVALENTS
Accounting principles
Cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included within borrowings in current interest-bearing loans.
EUR million | 2025 | 2024 |
Cash at bank and in hand | 16.6 | 19.8 |
Short-term deposits | 1.7 | 1.9 |
Total | 18.2 | 21.7 |
Russia\u2019s current assets include EUR 3.8 million of cash and cash
equivalents which may contain transfer restrictions.
17
CASH AND CASH EQUIVALENTS
Accounting principles
Cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are included within borrowings in current interest-bearing loans.
EUR million | 2025 | 2024 |
Cash at bank and in hand | 16.6 | 19.8 |
Short-term deposits | 1.7 | 1.9 |
Total | 18.2 | 21.7 |
Russia\u2019s current assets include EUR 3.8 million of cash and cash
equivalents which may contain transfer restrictions.
18
SHARE CAPITAL AND EQUITY FUNDS
SHARES AND SHARE CAPITAL
Shares | 2025 | 2024 |
Number of shares Jan. 1 | 39 000 000 | 39 000 000 |
Number of shares Dec. 31 | 39 000 000 | 39 000 000 |
Own shares Jan. 1 | 123 891 | 123 891 |
Purchase of own shares | 746 268 | |
Own shares Dec 31 | 870 159 | 123 891 |
On December 31, 2025, the share capital fully paid and reported in the Trade Register was EUR 3.6 million and the total number of shares was 39 000 000.
For more information on shares and share capital, see the section \u2018Shares and Shareholders\u2019.
EQUITY FUNDS
Share premium fund includes the premiums received on exercise of share options and other share issues under the old Finnish Companies Act. Fund for invested non-restricted equity includes subscription prices for shares to the extent that it is specifically not to be credited to share capital and other types of equity investments.
Translation differences contain exchange differences arising from the currency translation of foreign subsidiaries\u2019 financial statements and exchange differences arising from monetary items that form part of net investments in foreign companies.
HYBRID BOND
On November 19, 2025, the Group announced the issuance of hybrid capital securities in the aggregate amount of 25.0 MEUR. The bond bears a fixed coupon interest of 9.0% per annum until November 27, 2028 (the \u201cReset Date\u201d) and, from the Reset Date, a floating interest rate as defined in the terms and conditions of the capital securities. The hybrid bond does not have a specified maturity date, but the Group is entitled to redeem the bond at their nominal amount on the Reset Date, and subsequently, on each interest payment date thereafter. The issue date for the capital securities was November 27, 2025.
Rapala VMC\u2019s largest shareholder, Viellard Migeon Et Compagnie Sa was committed to participate in the issue of the capital securities by rolling its existing holding in the 30.0 MEUR hybrid in an amount of 7.2 MEUR into the issue of the 25.0 MEUR capital securities.
The capital securities are subordinated to the Group\u2019s other debt obligations and treated as equity in the consolidated financial state-ments prepared in accordance with the IFRS. The capital securities do not confer to its holders the rights of a shareholder and do not dilute the holdings of the current shareholders.
The proceeds from the issue of the capital securities were used for the refinancing of the 30.0 MEUR hybrid capital securities issued by the Group on November 29, 2023 and general corporate purposes.
DIVIDENDS
No dividend was paid for 2024. The Board of Directors proposes to the Annual General Meeting that no dividend will be paid for 2025.
BOARD\u2019S AUTHORIZATIONS
For information on the Board\u2019s authorizations and acquisition of own shares, see section \u2019Shares and Shareholders\u2019.
18
SHARE CAPITAL AND EQUITY FUNDS
SHARES AND SHARE CAPITAL
Shares | 2025 | 2024 |
Number of shares Jan. 1 | 39 000 000 | 39 000 000 |
Number of shares Dec. 31 | 39 000 000 | 39 000 000 |
Own shares Jan. 1 | 123 891 | 123 891 |
Purchase of own shares | 746 268 | |
Own shares Dec 31 | 870 159 | 123 891 |
On December 31, 2025, the share capital fully paid and reported in the Trade Register was EUR 3.6 million and the total number of shares was 39 000 000.
For more information on shares and share capital, see the section \u2018Shares and Shareholders\u2019.
EQUITY FUNDS
Share premium fund includes the premiums received on exercise of share options and other share issues under the old Finnish Companies Act. Fund for invested non-restricted equity includes subscription prices for shares to the extent that it is specifically not to be credited to share capital and other types of equity investments.
Translation differences contain exchange differences arising from the currency translation of foreign subsidiaries\u2019 financial statements and exchange differences arising from monetary items that form part of net investments in foreign companies.
HYBRID BOND
On November 19, 2025, the Group announced the issuance of hybrid capital securities in the aggregate amount of 25.0 MEUR. The bond bears a fixed coupon interest of 9.0% per annum until November 27, 2028 (the \u201cReset Date\u201d) and, from the Reset Date, a floating interest rate as defined in the terms and conditions of the capital securities. The hybrid bond does not have a specified maturity date, but the Group is entitled to redeem the bond at their nominal amount on the Reset Date, and subsequently, on each interest payment date thereafter. The issue date for the capital securities was November 27, 2025.
Rapala VMC\u2019s largest shareholder, Viellard Migeon Et Compagnie Sa was committed to participate in the issue of the capital securities by rolling its existing holding in the 30.0 MEUR hybrid in an amount of 7.2 MEUR into the issue of the 25.0 MEUR capital securities.
The capital securities are subordinated to the Group\u2019s other debt obligations and treated as equity in the consolidated financial state-ments prepared in accordance with the IFRS. The capital securities do not confer to its holders the rights of a shareholder and do not dilute the holdings of the current shareholders.
The proceeds from the issue of the capital securities were used for the refinancing of the 30.0 MEUR hybrid capital securities issued by the Group on November 29, 2023 and general corporate purposes.
DIVIDENDS
No dividend was paid for 2024. The Board of Directors proposes to the Annual General Meeting that no dividend will be paid for 2025.
BOARD\u2019S AUTHORIZATIONS
For information on the Board\u2019s authorizations and acquisition of own shares, see section \u2019Shares and Shareholders\u2019.
18
SHARE CAPITAL AND EQUITY FUNDS
SHARES AND SHARE CAPITAL
Shares | 2025 | 2024 |
Number of shares Jan. 1 | 39 000 000 | 39 000 000 |
Number of shares Dec. 31 | 39 000 000 | 39 000 000 |
Own shares Jan. 1 | 123 891 | 123 891 |
Purchase of own shares | 746 268 | |
Own shares Dec 31 | 870 159 | 123 891 |
On December 31, 2025, the share capital fully paid and reported in the Trade Register was EUR 3.6 million and the total number of shares was 39 000 000.
For more information on shares and share capital, see the section \u2018Shares and Shareholders\u2019.
EQUITY FUNDS
Share premium fund includes the premiums received on exercise of share options and other share issues under the old Finnish Companies Act. Fund for invested non-restricted equity includes subscription prices for shares to the extent that it is specifically not to be credited to share capital and other types of equity investments.
Translation differences contain exchange differences arising from the currency translation of foreign subsidiaries\u2019 financial statements and exchange differences arising from monetary items that form part of net investments in foreign companies.
HYBRID BOND
On November 19, 2025, the Group announced the issuance of hybrid capital securities in the aggregate amount of 25.0 MEUR. The bond bears a fixed coupon interest of 9.0% per annum until November 27, 2028 (the \u201cReset Date\u201d) and, from the Reset Date, a floating interest rate as defined in the terms and conditions of the capital securities. The hybrid bond does not have a specified maturity date, but the Group is entitled to redeem the bond at their nominal amount on the Reset Date, and subsequently, on each interest payment date thereafter. The issue date for the capital securities was November 27, 2025.
Rapala VMC\u2019s largest shareholder, Viellard Migeon Et Compagnie Sa was committed to participate in the issue of the capital securities by rolling its existing holding in the 30.0 MEUR hybrid in an amount of 7.2 MEUR into the issue of the 25.0 MEUR capital securities.
The capital securities are subordinated to the Group\u2019s other debt obligations and treated as equity in the consolidated financial state-ments prepared in accordance with the IFRS. The capital securities do not confer to its holders the rights of a shareholder and do not dilute the holdings of the current shareholders.
The proceeds from the issue of the capital securities were used for the refinancing of the 30.0 MEUR hybrid capital securities issued by the Group on November 29, 2023 and general corporate purposes.
DIVIDENDS
No dividend was paid for 2024. The Board of Directors proposes to the Annual General Meeting that no dividend will be paid for 2025.
BOARD\u2019S AUTHORIZATIONS
For information on the Board\u2019s authorizations and acquisition of own shares, see section \u2019Shares and Shareholders\u2019.
SHARES AND SHARE CAPITAL
Shares | 2025 | 2024 |
Number of shares Jan. 1 | 39 000 000 | 39 000 000 |
Number of shares Dec. 31 | 39 000 000 | 39 000 000 |
Own shares Jan. 1 | 123 891 | 123 891 |
Purchase of own shares | 746 268 | |
Own shares Dec 31 | 870 159 | 123 891 |
On December 31, 2025, the share capital fully paid and reported in the Trade Register was EUR 3.6 million and the total number of shares was 39 000 000.
For more information on shares and share capital, see the section \u2018Shares and Shareholders\u2019.
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No dividend was paid for 2024. The Board of Directors proposes to the Annual General Meeting that no dividend will be paid for 2025.
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EMPLOYEE BENEFIT OBLIGATIONS
Most of the Group\u00b4s pension plans are defined contribution plans. The Group has defined benefit pension plans in France and in some Rest of the World countries. The plans in Rest of the World countries are im-material as a whole. The retirement benefits are determined based on salary and period of employment. These obligations are unfunded. The Group has no other post-employment benefit obligations. The pension security of the personnel of the Group\u2019s Finnish companies is arranged under the Finnish statutory employee pension plan (TYEL) through an external pension insurance company. Employee benefit obligations also include a long-term profit-sharing payable to the employees in France.\t
EXPENSES RECOGNIZED IN THE INCOME STATEMENT
EUR million | 2025 | 2024 |
Current service cost | -0.1 | -0.1 |
Interest cost | -0.0 | -0.0 |
Total | -0.2 | -0.2 |
AMOUNTS RECOGNIZED IN THE BALANCE SHEET
EUR million | 2025 | 2024 |
Rest of Europe | 1.5 | 1.4 |
Rest of the World | 0.1 | 0.0 |
Present value of unfunded obligations | 1.5 | 1.5 |
BALANCE SHEET RECONCILIATION
EUR million | 2025 | 2024 |
Obligations Jan. 1 | 1.5 | 1.5 |
Current service cost | 0.2 | 0.1 |
Interest cost | 0.0 | |
Actuarial gains and losses | ||
Changes in demographic assumptions | 0.0 | 0.0 |
Changes in financial assumptions | -0.1 | 0.1 |
Changes in experience assumptions | 0.0 | 0.0 |
Past service cost | 0.0 | -0.2 |
Paid contributions | 0.0 | 0.0 |
Obligations Dec. 31 | 1.5 | 1.5 |
The following payments are expected contributions to be made in the future years out of the defined benefit plan obligation.
EUR million | 2025 | 2024 |
Within one year | - | - |
1-5 years | 0.2 | 0.3 |
5-10 years | 0.9 | 0.9 |
Later than 10 years | 0.3 | - |
Total | 1.4 | 1.2 |
ASSUMPTIONS
Rest of Europe | ||
% | 2025 | 2024 |
Discount rate | 3.8 | 3.1 |
Future salary increase | 2.8 | 3.0 |
Annual inflation rate | 2.0 | 2.0 |
Rest of the World | ||
% | 2025 | 2024 |
Discount rate | 1.5 | 2.3 |
Annual inflation rate | 3.0 | 3.0 |
20
PROVISIONS
Accounting principles
The timing of the recognition of a provision is based on man-agement\u2019s estimate of the moment when the Group has a present legal or constructive obligation, as a result of a past event, and it is probable that an outflow of resources embody-ing economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
EUR million | 2025 | 2024 |
Other provisions | ||
Provisions Jan. 1 | 0.3 | 0.3 |
Additions | 0.0 | - |
Translation differences | 0.0 | - |
Provisions Dec. 31 | 0.3 | 0.3 |
20
PROVISIONS
Accounting principles
The timing of the recognition of a provision is based on man-agement\u2019s estimate of the moment when the Group has a present legal or constructive obligation, as a result of a past event, and it is probable that an outflow of resources embody-ing economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
EUR million | 2025 | 2024 |
Other provisions | ||
Provisions Jan. 1 | 0.3 | 0.3 |
Additions | 0.0 | - |
Translation differences | 0.0 | - |
Provisions Dec. 31 | 0.3 | 0.3 |
21
FINANCIAL RISK MANAGEMENT AND DERIVATIVE FINANCIAL INSTRUMENTS
Accounting principles
Financial assets are initially measured at fair value at trade date. Subsequently, financial assets are classified and measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit and loss.
Financial assets are measured at amortized cost when busi-ness model is hold-to-collect and cash flows are solely pay-ments of principal and interest. Financial assets at amortized cost include non-derivative financial assets such as cash and cash equivalents, trade receivables and loan receivables.
Financial assets measured at fair value through profit and loss are assets which are derivatives not in hedge accounting.
Financial assets measured at fair value through other com-prehensive income are equity instruments where entity has done an irrevocable election at initial recognition for particular investments in equity instruments that would otherwise be measured at fair value through profit or loss.
Impairment of financial assets is assessed regularly and when the carrying value exceeds the fair value or recoverable value of discounted cash flows, appropriate impairment is rec-ognized in the income statement.
For trade receivables Rapala applies IFRS 9 expected credit loss assessment.
The main objective of the Group\u2019s financial risk management is to re-duce the impacts of price fluctuations in financial markets and other factors of uncertainty on earnings, cash flows and balance sheet, as well as to ensure sufficient liquidity. The Board has approved the Group\u2019s risk management principles and CEO is responsible, together with the Chief Financial Officer, for development and implementation of financial risk management procedures.\t
Group Risk Management review financial risks on regular basis to manage Group\u2019s financial risk position and decide on necessary actions to manage financial risks. Group Risk Management continued monitor-ing and management of foreign exchange, interest rate, liquidity and counterparties\u2019 solvency risks.
Financial risks consist of market risks, credit and default risks and liquidity risks. This note also presents the Group\u2019s capital management.
MARKET RISKS
The Group\u2019s market risks are mainly caused by changes in foreign ex-change and interest rates. These changes may have a significant impact on the Group\u2019s earnings, cash flows and balance sheet. The Group is also exposed to market price changes of certain raw materials, mainly metals and plastics, which are priced on commodity markets.
1. Foreign exchange risk
Foreign currency risk is the risk that the fair value or future cash flows will fluctuate because of changes in foreign exchange rates. The Group\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the Group\u2019s operating activities, when revenue or expense is denominated in a foreign currency, financing, when debt is denominated in a foreign currency, and the Group\u2019s net investments in foreign subsidiaries.
The Group\u2019s foreign exchange risk is managed by the business units and Group Risk Management in accordance with the Foreign Exchange Risk Management policy approved by the Board of Directors.\t
Foreign exchange transaction risk
Foreign currency denominated receivables and payables that are ex-posed to movements in foreign exchange rates. Income and expenses within different currencies net each other out to some extent, creating thus an effective natural hedge. The remaining, estimated 12-15 month commercial net exposure is then systematically hedged by using de-rivative instruments. Depending on whether foreign currency monetary receivables and payables relate to sales and purchases or financial items, the foreign exchange gains and losses are recognized in the income statement either above or below operating profit.
The Group has also intra-group loans denominated in currencies that exposes the Group to currency risk that is not fully eliminated
on consolidation. Depending on whether these loans are classified as net investments on foreign operations or loan receivables, the foreign exchange gains and losses are recognized in the other comprehensive income or income statement. The connections possibly prevailing be-tween different currencies are not taken into account, e.g. US dollar and Hong Kong dollar are considered as separate currencies in this analysis.
Group Risk Management is responsible for monitoring the Group\u2019s consolidated currency risk exposure and when needed, enters into de-rivative transactions with external counterparties.
Derivative instruments that are used for hedging purposes are mainly short-term and can include forward contracts, option contracts and structured instruments. Because the Group does not apply hedge ac-counting on currency derivatives, the income statement effect arising from fair value changes of derivative instruments is recognized partly or entirely in different financial periods than exchange rate gains and losses arising from the hedged cash flows.
In 2025 currency derivatives that are used for operative hedging pur-poses had an income statement effect of EUR 0.7 million (2024: EUR -0.7 million). Fair values and nominal values of currency derivatives are summarized under section 4. Derivatives.
At the end of 2025 and 2024 the following currencies represent a significant portion of the currency mix outstanding:
2025
EUR million | USD | CAD | IDR | CLP | PLN |
Transaction risk and hedging | |||||
Transaction exposure* | 3.0 | 4.6 | 5.2 | 3.7 | 4.9 |
Hedges | -0.5 | 2.3 | -0.8 |
2024
EUR million | USD | CAD | IDR | CLP | RUB |
Transaction risk and hedging | |||||
Transaction exposure* | 22.9 | 11.3 | 6.5 | 3.3 | 2.7 |
Hedges | -10.7 | -3.4 | -0.9 | -0.8 |
*If US dollar and Hong Kong dollar peg would be taken into account in this analysis, the combined USD and HKD transaction exposure would be 2.2 MEUR (2024: 21.9 MEUR) .
Foreign exchange translation risk
The group is exposed to currency translation risk through its investments in foreign subsidiaries and associated companies with equities\u2019 denominated in foreign currencies. The most significant translation exposures are in USD, HKD, IDR, CAD and RUB, which comprise approximately 81.1% of the total translation exposure. In the Group consolidation equity changes resulting from movements in foreign exchange rates are presented as translation differences within the equity.
The Group Risk Management monitors regularly the amounts of net invest-ments denominated in foreign currencies and when needed, enters into hedg-ing transactions in order to reduce the volatility in equity in the consolidated balance sheet. During 2025 the Group did not hedge any equity exposure.
The total non-euro denominated equity excluding net income of the Group\u2019s subsidiaries and associated companies was 126.3 as of Decem-ber 31, 2025 (2024: EUR 108.2 million). The most significant translation exposures are summarized in the following table.
Group translation exposure
EUR million | 2025 | 2024 |
USD | 69.0 | 70.1 |
HKD | 6.7 | 6.1 |
IDR | 8.2 | 6.6 |
CAD | 12.6 | 8.3 |
RUB | 5.9 | 4.1 |
Total | 102.4 | 95.2 |
Sensitivity analysis
Sensitivity analysis is based on the following assumptions and factors:\t
The sensitivity analysis is based on change of value in a single an-alyzed currency and assumes other variables (including values of other currencies) to remain unchanged. The connections possibly prevailing between some currencies are not taken into account.
The sensitivity is analyzed against the income statement and bal-ance sheet exchange rates prevailing at December 31, 2025.
The analysis includes the effect of income statement transactions made in the analyzed currency between January 1 and December 31 in Group companies, whose functional currency is other than the analyzed currency (so called transaction impact) as well as in Group companies, whose functional currency equals to the ana-lyzed currency (so called translation impact). The analysis takes into account the currency forward contracts in place at December 31. The sensitivity analysis of income statement transactions excludes Group\u2019s internal items as these net out.
The sensitivity analysis includes the effect of the translation of subsidiaries\u2019 equity as per December 31 in subsidiaries, whose reporting currency equals to the analyzed currency.
Group transaction risk sensitivity analysis
The effect of a 10% weakening of most significant foreign currencies (against euro) in euros:
2025
EUR million | USD | CAD | IDR | CLP | PLN |
Operating profit | -0.4 | -0.8 | 0.2 | -0.4 | -0.2 |
Equity* | -6.9 | -1.3 | -0.8 | -0.4 | -0.3 |
2024
EUR million | USD | CAD | IDR | CLP | RUB |
Operating profit | 0.1 | -1.3 | 0.1 | -0.2 | -0.2 |
Equity* | -7.0 | -0.8 | -0.7 | -0.3 | -0.4 |
*Without the effect of net income.
2. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with floating interest rates. The Group\u2019s interest-bearing liabilities have mainly an interest period length shorter than one year.
The Group\u2019s funding, and consequently also interest rate risk, is man-aged centrally by the Group\u2019s parent company. Interest rate risk, cover-ing cash flow and fair value risk, is analyzed regurarly by the Group Risk Management who is also responsible of taking the actions needed to change the Group\u2019s risk position. These actions include changing the currency split of the external loan portfolio, selection between differ-ent sources of financing, changing the interest rate duration as well as entering into transactions in derivative financial instruments.\t
Derivative instruments that are used for hedging purposes consist of interest rate swaps, where the Group pays fixed rate interest and re-ceives a variable rate interest. Fair values and nominal values of interest rate swaps are presented under section 4. Derivatives.
Interest rate sensitivity analysis
Below is presented the effect of liabilities with variable interest rate and interest rate swaps on net income and equity if there was a one percentage point increase in interest rates. The sensitivity analysis is based on following assumptions and factors:
All other variables, in particular foreign exchange rates, are as-sumed to remain unchanged.
The sensitivity is analyzed against interest rates applicable on December 31.
The sensitivity analysis includes the liabilities and interest rate swaps with variable interest rate in force on December 31.
2025 | 2024 | |
EUR million | Net income (net of tax) | Net income (net of tax) |
Loans from financial institutions with variable interest rate | -0.3 | 0.2 |
3. Other market price risks
The Group purchases certain raw-materials, which are priced on global financial markets. The value of these purchases is relatively low and actions regarding the management of price risk are decided on an performed locally in each manufacturing unit. The Group does not cur-rently hedge commodity price risk.
The amount of the Group\u2019s investments in available-for-sale financial assets is insignificant and consists of investments in real estate and other unquoted shares for which reliable market values are not obtainable.
4. Derivatives
The Group uses derivative instruments, such as forward contracts, option contracts, interest rate swaps and structured instruments, to manage foreign exchange and interest rate risk in accordance with the guidelines set by the The Group\u2019s Risk Management policy.
Foreign currency derivatives are used to reduce the uncertainty in the fair value of future cash flows that is created by changes in foreign exchange rates. The fair values of the foreign currency derivatives that do not qualify as hedging instruments in accordance with IFRS 9, are recognized based on their nature either in operative costs, if the hedge item is an operative transaction, or in financial income and expenses, if the hedged item is a monetary transaction. Because hedge accounting is not applied, the P&L effect arising from foreign currency derivatives is recognized partly or entirely in different financial period than exchange rate gains and losses arising from the hedged cash flows.\t
Interest rate derivatives, consisting of interest rate swaps, are used to reduce the volatility of interest expenses in the income statement and to adjust the duration of the debt portfolio.
Accounting principles
The Group is exposed to financial risks related especially to changes in foreign currency exchange rates and interest rates. Derivative financial instruments for hedging financial risk are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models. The fair values of these instru-ments are received from the counterparty bank or calculated to match the current market price.
Changes in fair value of derivative instruments are recognized in the income statement based on their nature either in the operative costs if the hedged item is an operative foreign currency transaction or as financial income or expenses, if the hedged item is a monetary transaction.
Fair values of derivative instruments are presented in the statement of financial position under short-term or long-term non-interest-bearing assets or liabilities based on their maturity.
Changes in the fair value of loans granted to foreign subsidiaries that form part of the net investment in a foreign operation, are recognized in translation differences in the statement of other comprehensive in-come. Accumulated fair value changes recognized in the items of other comprehensive income are reclassified into income statement when the foreign subsidiary is disposed.
Cash flow hedges
Following tables summarizes the nominal values and fair values of the Group\u2019s derivative instruments as at December 31, 2025.
2025 | 2024 | |||
EUR million | Nominal value | Fair value | Nominal value | Fair value |
Non-hedge accounting deriva-tive financial instruments | ||||
Interest rate swaps, 1 to 5 years | 35.0 | -0.5 | 35.0 | -0.8 |
Currency forwards, less than 12 months | 38.4 | 0.0 | 26.4 | -0.5 |
Total | 73.4 | -0.5 | 61.4 | -1.3 |
LIQUIDITY RISK
Liquidity risk is defined as financial distress or extraordinarily high fi-nancing cost arising due to a shortage of liquid funds in a situation where outstanding debt needs to be refinanced or where business con-ditions unexpectedly deteriorate and require financing. Transactional liquidity risk is defined as the risk of executing a financial transaction below fair market value, or not being able to execute the transaction at all, within a specific period of time.
The objective of liquidity risk management is to maintain sufficient liquidity, and to ensure that it is available fast enough without endanger-ing its value, in order to avoid uncertainty related to financial distress at all times.
Generally, the seasonality of the Group\u2019s cash flow is fairly predictable and Group Treasury monitors Group\u2019s liquidity position using the cash pooling system as well as regular cash flow and liquidity reporting.\t
The Group\u2019s interest bearing funding is mainly managed centrally by the Group Treasury. The Group seeks to reduce liquidity and refinanc-ing risks with balanced maturity profile of loans as well as by keeping sufficient amount of credit lines available. The Group has a EUR 80 mil-lion domestic commercial paper program, which together with Group\u2019s credit limits is utilized to balance the seasonality of the Group\u2019s cash flow. The size and maturity of issued commercial papers is decided by Group Treasury, based on forecasted cash flows, status of commercial paper markets and applicable interest rates. The renewal of commercial papers upon maturity creates certain liquidity risk, which is managed by maintaining sufficient other liquidity reserves available at the maturity dates During 2025 the commercial paper program was used as part of Group funding and competitively priced debt was acquired through this market.
The Group\u2019s 91.5 MEUR senior secured term and revolving credit facilities agreement includes financial covenants based on the net debt to EBITDA ratio (\u201cleverage ratio\u201d), the ratio of net debt to consolidated equity and the minimum liquidity. The financial leverage ratio covenant level for periods Q4/2025 to Q2/2026 is 3.80, for periods Q3/2026 to Q4/2027 3.50 and from Q1/2028 onwards 3.20. Covenants are regularly tested, either quarterly or on the last day of each month. The risk of breaching the covenants would trigger negotiations between the Group and lending banks to resolve the potential covenant breach, and to agree on actions to rectify the situation. In the unlikely event of unresolved covenant breach, the lending banks would have the right to call all or any part of the loans and related interest. On Q3/2025 and Q4/2025 testing dates, the leverage ratio landed at 2.93 and 3.61. Calculation of the covenants include customary adjustments mainly related to
items affecting comparability and asset disposals and therefore devi-ate from the reported figures elsewhere in this report. The Group is currently compliant with all financial covenants and expects to comply with future bank requirements as well. The Group\u2019s liquidity position remains good, and cash and cash equivalents amounted to 18.2 MEUR on December 31, 2025.
Below are presented the Group\u2019s unutilized credit limits as of Decem-ber 31, 2025. Group\u2019s domestic commercial paper program not sold at December 31, 2025 was EUR 65.0 million (2024 EUR 66.0 million).\t
Committed unutilized credit facilities
EUR million | 2025 | 2024 |
Overdraft facilities, expiring within one year | 14.6 | 11.2 |
Revolving credit facility, expiring beyond one year | 23.8 | 41.0 |
Total | 38.4 | 52.2 |
Maturity of the group\u2019s financial liabilities
The following are the contractual maturities of financial liabilities, including the possible interest payments.
2025
EUR million | Carrying value | Financial liabilities 4) | Contractual cash flows | 2026 | 2027 | 2028 | 2029onwards | Total |
Interest-bearing liabilities | ||||||||
Loans from financial institutions | 67.0 | 67.0 | 70.6 | 6.5 | 64.1 | 70.6 | ||
Commercial paper program | 15.0 | 15.0 | 15.0 | 15.0 | 15.0 | |||
Lease liabilities | 9.9 | 9.9 | 10.5 | 1.3 | 3.7 | 0.6 | 4.9 | 10.5 |
Non-interest-bearing liabilities | ||||||||
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 16.9 | 16.9 | |||
Derivative liabilities and receivables | ||||||||
Interest rate derivatives, non-hedge accounted | 0.5 | 0.5 | 0.5 | 0.4 | 0.2 | 0.5 | ||
Currency derivatives, non-hedge accounted | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||
Total | 128.3 | 109.2 | 113.5 | 40.1 | 68 | 0.6 | 4.9 | 113.6 |
4)The proportion of the carrying values which are classified as financial liabilities according to IFRS 9.
2024
EUR million | Carrying value | Financial liabilities 4) | Contractual cash flows | 2025 | 2026 | 2027 | 2028 onwards | Total |
Interest-bearing liabilities | ||||||||
Loans from financial institutions | 57.6 | 57.6 | 61.5 | 11.5 | 50.0 | 61.5 | ||
Commercial paper program | 14.0 | 14.0 | 14.0 | 14.0 | 14.0 | |||
Lease liabilities | 12.5 | 12.5 | 12.9 | 1.9 | 1.4 | 4.3 | 5.4 | 12.9 |
Non-interest-bearing liabilities | ||||||||
Trade and other non-interest-bearing payables | 39.5 | 19.9 | 19.9 | 19.9 | 19.9 | |||
Derivative liabilities and receivables | ||||||||
Interest rate derivatives, non-hedge accounted | 0.8 | 0.8 | 0.8 | 0.3 | 0.4 | 0.2 | 0.8 | |
Currency derivatives, non-hedge accounted | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | |||
Total | 124.9 | 105.3 | 109.6 | 48.0 | 51.8 | 4.5 | 5.4 | 109.6 |
CREDIT AND DEFAULT RISK
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, includ-ing deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The maximum exposure to credit risk is limited to the carrying value of the financial assets as included in the consolidated statement of financial position. The car-rying value of financial assets is disclosed in note 22.
The Group follows actively credit and default risks associated with customers and other counterparties. The Group\u2019s credit and default risk portfolio did not significantly change during the course of the financial pe-riod. The proportional amount of Group\u2019s trade receivables which are past due, increased from 2024 levels. Net allowance for credit losses related to trade receivables remained at the same level as in the 2024 financial year.
Business related credit risk
The Group\u2019s accounts receivables are generated by a large number of customers worldwide and do not include any significant concentrations of credit risk by customer or by geographical area.
The management of credit risk is allocated to each operative business unit. Before providing credit to any new customer, background checks are carried out. Cash, advance payments and letters of credit are also applied with new and existing customers. Each business unit is responsible for setting credit limits and monitoring it\u2019s credit customers\u2019 financial situ-ation. Customers\u2019 payment behavior is monitored regularly and delays in payments can trigger payment reminders, stopping the shipments, requirements for advance payments for future shipments and eventually legal collection procedures. In significant cases, business units consult with the Group\u2019s finance management before taking final decisions. In exceptional cases, payment terms may be renegotiated.\t
Group recognizes credit loss of trade receivables by applying sim-plified approach of expected credit loss according to IFRS 9, which uses a lifetime expected loss allowance. Group has estimated based on previous year\u2019s credit losses by aging category and nature as well as macroeconomic outlook in the near future, the expected credit loss provision. Trade receivables are monitored in client segment and loca-tion information.
Estimate on expected credit losses is based on management\u2019s best judgement.
More information on allowance for trade receivables is presented in note 15.
In the table below is presented analysis of trade receivables that were past due but not impaired.
Analysis of trade receivables that were past due but not impaired
EUR Million | 2025 | 2024 |
Neither past due nor impaired | 18.0 | 19.8 |
Past due but not impaired | ||
Less than 1 month | 3.2 | 2.9 |
1-3 months | 1.1 | 0.8 |
3-6 months | 0.5 | 0.4 |
Over 6 months | 0.3 | 0.5 |
Total | 23.1 | 24.4 |
Trade loss provision from expected credit loss model, %
% | 2025 |
Neither past due nor impaired | 0.2 |
Past due but not impaired | |
Less than 1 month | 0.9 |
1-3 months | 6.0 |
3-6 months | 11.0 |
Over 6 months | 20-100 |
Financial credit risk
Financial instruments contain an element of risk resulting from changes in market price of such instruments due to counterparties becoming less creditworthy or risk of loss due to counterparties being unable to meet their obligations. This risk is measured and monitored centrally by the Group Risk Management.
Financial credit risk is managed actively by limiting counterparties to a sufficient number of major banks and financial institutions and monitoring the credit worthiness and exposure size continuously as well as through entering into collateral agreements with certain counterpar-ties. The Group reduces credit risk by executing treasury transactions only with approved counterparties. All significant counterparties are rated with the minimum counterparty credit rating requirement being BBB (S&P). Foreign subsidiaries may have bank accounts in unrated financial institutions. In order to decrease credit risk associated with local banks used by subsidiaries in foreign countries, the subsidiar-ies are required to deposit their excess cash balances with the Group Treasury on an ongoing basis.
Group\u2019s all investments related to liquidity management are made in liquid instruments with low credit risk. For instance, the Group does not have investments in commercial papers.
CAPITAL MANAGEMENT
The objective of the Group\u2019s capital management is to ensure that it maintains healthy capital ratios in order to support its business and to maximize shareholder value.
The Group manages its capital structure and makes adjustments to it taking into account changes in economic conditions and requirements of strategy implementation. To maintain or develop the capital struc-ture, the Group may adjust the dividend payments and repayments of capital to shareholders by buying back shares, issue new shares and/or increase/decrease the amount of borrowings.
The Group\u2019s 91.5 MEUR senior secured term and revolving credit facilities agreement includes financial covenants based on the net debt to EBITDA ratio (\u201cleverage ratio\u201d), the ratio of net debt to consolidated equity and the minimum liquidity.
Group\u2019s objective for capital management is to keep:
1. Net gearing ratio below 100% and
2. Net interest-bearing debt to EBITDA (rolling 12 months) below 3.8,
and from 30 June 2026 onwards below 3.5.
The Group capital structure is reviewed by the Board regularly.
The achievement of the objectives for capital management are presented in the table below.
For definitions of key figures, see page 84.
Target | 2025 | 2024 | |
Net gearing % | below 100% | 54.0 | 39.8 |
Net interest-bearing debt to EBITDA(rolling 12 months) | below 3.8 | 3.6 | 2.9 |
Calculation of the covenants include customary adjustments main-ly related to items affecting comparability and asset disposals and therefore deviate from the reported figures elsewhere in this re-port. The Group is currently compliant with all financial covenants and expects to comply with future bank requirements as well.
Definitions of the alternative performance
measures are presented on page 84.
21
FINANCIAL RISK MANAGEMENT AND DERIVATIVE FINANCIAL INSTRUMENTS
Accounting principles
Financial assets are initially measured at fair value at trade date. Subsequently, financial assets are classified and measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit and loss.
Financial assets are measured at amortized cost when busi-ness model is hold-to-collect and cash flows are solely pay-ments of principal and interest. Financial assets at amortized cost include non-derivative financial assets such as cash and cash equivalents, trade receivables and loan receivables.
Financial assets measured at fair value through profit and loss are assets which are derivatives not in hedge accounting.
Financial assets measured at fair value through other com-prehensive income are equity instruments where entity has done an irrevocable election at initial recognition for particular investments in equity instruments that would otherwise be measured at fair value through profit or loss.
Impairment of financial assets is assessed regularly and when the carrying value exceeds the fair value or recoverable value of discounted cash flows, appropriate impairment is rec-ognized in the income statement.
For trade receivables Rapala applies IFRS 9 expected credit loss assessment.
The main objective of the Group\u2019s financial risk management is to re-duce the impacts of price fluctuations in financial markets and other factors of uncertainty on earnings, cash flows and balance sheet, as well as to ensure sufficient liquidity. The Board has approved the Group\u2019s risk management principles and CEO is responsible, together with the Chief Financial Officer, for development and implementation of financial risk management procedures.\t
Group Risk Management review financial risks on regular basis to manage Group\u2019s financial risk position and decide on necessary actions to manage financial risks. Group Risk Management continued monitor-ing and management of foreign exchange, interest rate, liquidity and counterparties\u2019 solvency risks.
Financial risks consist of market risks, credit and default risks and liquidity risks. This note also presents the Group\u2019s capital management.
MARKET RISKS
The Group\u2019s market risks are mainly caused by changes in foreign ex-change and interest rates. These changes may have a significant impact on the Group\u2019s earnings, cash flows and balance sheet. The Group is also exposed to market price changes of certain raw materials, mainly metals and plastics, which are priced on commodity markets.
1. Foreign exchange risk
Foreign currency risk is the risk that the fair value or future cash flows will fluctuate because of changes in foreign exchange rates. The Group\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the Group\u2019s operating activities, when revenue or expense is denominated in a foreign currency, financing, when debt is denominated in a foreign currency, and the Group\u2019s net investments in foreign subsidiaries.
The Group\u2019s foreign exchange risk is managed by the business units and Group Risk Management in accordance with the Foreign Exchange Risk Management policy approved by the Board of Directors.\t
Foreign exchange transaction risk
Foreign currency denominated receivables and payables that are ex-posed to movements in foreign exchange rates. Income and expenses within different currencies net each other out to some extent, creating thus an effective natural hedge. The remaining, estimated 12-15 month commercial net exposure is then systematically hedged by using de-rivative instruments. Depending on whether foreign currency monetary receivables and payables relate to sales and purchases or financial items, the foreign exchange gains and losses are recognized in the income statement either above or below operating profit.
The Group has also intra-group loans denominated in currencies that exposes the Group to currency risk that is not fully eliminated
on consolidation. Depending on whether these loans are classified as net investments on foreign operations or loan receivables, the foreign exchange gains and losses are recognized in the other comprehensive income or income statement. The connections possibly prevailing be-tween different currencies are not taken into account, e.g. US dollar and Hong Kong dollar are considered as separate currencies in this analysis.
Group Risk Management is responsible for monitoring the Group\u2019s consolidated currency risk exposure and when needed, enters into de-rivative transactions with external counterparties.
Derivative instruments that are used for hedging purposes are mainly short-term and can include forward contracts, option contracts and structured instruments. Because the Group does not apply hedge ac-counting on currency derivatives, the income statement effect arising from fair value changes of derivative instruments is recognized partly or entirely in different financial periods than exchange rate gains and losses arising from the hedged cash flows.
In 2025 currency derivatives that are used for operative hedging pur-poses had an income statement effect of EUR 0.7 million (2024: EUR -0.7 million). Fair values and nominal values of currency derivatives are summarized under section 4. Derivatives.
At the end of 2025 and 2024 the following currencies represent a significant portion of the currency mix outstanding:
2025
EUR million | USD | CAD | IDR | CLP | PLN |
Transaction risk and hedging | |||||
Transaction exposure* | 3.0 | 4.6 | 5.2 | 3.7 | 4.9 |
Hedges | -0.5 | 2.3 | -0.8 |
2024
EUR million | USD | CAD | IDR | CLP | RUB |
Transaction risk and hedging | |||||
Transaction exposure* | 22.9 | 11.3 | 6.5 | 3.3 | 2.7 |
Hedges | -10.7 | -3.4 | -0.9 | -0.8 |
*If US dollar and Hong Kong dollar peg would be taken into account in this analysis, the combined USD and HKD transaction exposure would be 2.2 MEUR (2024: 21.9 MEUR) .
Foreign exchange translation risk
The group is exposed to currency translation risk through its investments in foreign subsidiaries and associated companies with equities\u2019 denominated in foreign currencies. The most significant translation exposures are in USD, HKD, IDR, CAD and RUB, which comprise approximately 81.1% of the total translation exposure. In the Group consolidation equity changes resulting from movements in foreign exchange rates are presented as translation differences within the equity.
The Group Risk Management monitors regularly the amounts of net invest-ments denominated in foreign currencies and when needed, enters into hedg-ing transactions in order to reduce the volatility in equity in the consolidated balance sheet. During 2025 the Group did not hedge any equity exposure.
The total non-euro denominated equity excluding net income of the Group\u2019s subsidiaries and associated companies was 126.3 as of Decem-ber 31, 2025 (2024: EUR 108.2 million). The most significant translation exposures are summarized in the following table.
Group translation exposure
EUR million | 2025 | 2024 |
USD | 69.0 | 70.1 |
HKD | 6.7 | 6.1 |
IDR | 8.2 | 6.6 |
CAD | 12.6 | 8.3 |
RUB | 5.9 | 4.1 |
Total | 102.4 | 95.2 |
Sensitivity analysis
Sensitivity analysis is based on the following assumptions and factors:\t
The sensitivity analysis is based on change of value in a single an-alyzed currency and assumes other variables (including values of other currencies) to remain unchanged. The connections possibly prevailing between some currencies are not taken into account.
The sensitivity is analyzed against the income statement and bal-ance sheet exchange rates prevailing at December 31, 2025.
The analysis includes the effect of income statement transactions made in the analyzed currency between January 1 and December 31 in Group companies, whose functional currency is other than the analyzed currency (so called transaction impact) as well as in Group companies, whose functional currency equals to the ana-lyzed currency (so called translation impact). The analysis takes into account the currency forward contracts in place at December 31. The sensitivity analysis of income statement transactions excludes Group\u2019s internal items as these net out.
The sensitivity analysis includes the effect of the translation of subsidiaries\u2019 equity as per December 31 in subsidiaries, whose reporting currency equals to the analyzed currency.
Group transaction risk sensitivity analysis
The effect of a 10% weakening of most significant foreign currencies (against euro) in euros:
2025
EUR million | USD | CAD | IDR | CLP | PLN |
Operating profit | -0.4 | -0.8 | 0.2 | -0.4 | -0.2 |
Equity* | -6.9 | -1.3 | -0.8 | -0.4 | -0.3 |
2024
EUR million | USD | CAD | IDR | CLP | RUB |
Operating profit | 0.1 | -1.3 | 0.1 | -0.2 | -0.2 |
Equity* | -7.0 | -0.8 | -0.7 | -0.3 | -0.4 |
*Without the effect of net income.
2. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with floating interest rates. The Group\u2019s interest-bearing liabilities have mainly an interest period length shorter than one year.
The Group\u2019s funding, and consequently also interest rate risk, is man-aged centrally by the Group\u2019s parent company. Interest rate risk, cover-ing cash flow and fair value risk, is analyzed regurarly by the Group Risk Management who is also responsible of taking the actions needed to change the Group\u2019s risk position. These actions include changing the currency split of the external loan portfolio, selection between differ-ent sources of financing, changing the interest rate duration as well as entering into transactions in derivative financial instruments.\t
Derivative instruments that are used for hedging purposes consist of interest rate swaps, where the Group pays fixed rate interest and re-ceives a variable rate interest. Fair values and nominal values of interest rate swaps are presented under section 4. Derivatives.
Interest rate sensitivity analysis
Below is presented the effect of liabilities with variable interest rate and interest rate swaps on net income and equity if there was a one percentage point increase in interest rates. The sensitivity analysis is based on following assumptions and factors:
All other variables, in particular foreign exchange rates, are as-sumed to remain unchanged.
The sensitivity is analyzed against interest rates applicable on December 31.
The sensitivity analysis includes the liabilities and interest rate swaps with variable interest rate in force on December 31.
2025 | 2024 | |
EUR million | Net income (net of tax) | Net income (net of tax) |
Loans from financial institutions with variable interest rate | -0.3 | 0.2 |
3. Other market price risks
The Group purchases certain raw-materials, which are priced on global financial markets. The value of these purchases is relatively low and actions regarding the management of price risk are decided on an performed locally in each manufacturing unit. The Group does not cur-rently hedge commodity price risk.
The amount of the Group\u2019s investments in available-for-sale financial assets is insignificant and consists of investments in real estate and other unquoted shares for which reliable market values are not obtainable.
4. Derivatives
The Group uses derivative instruments, such as forward contracts, option contracts, interest rate swaps and structured instruments, to manage foreign exchange and interest rate risk in accordance with the guidelines set by the The Group\u2019s Risk Management policy.
Foreign currency derivatives are used to reduce the uncertainty in the fair value of future cash flows that is created by changes in foreign exchange rates. The fair values of the foreign currency derivatives that do not qualify as hedging instruments in accordance with IFRS 9, are recognized based on their nature either in operative costs, if the hedge item is an operative transaction, or in financial income and expenses, if the hedged item is a monetary transaction. Because hedge accounting is not applied, the P&L effect arising from foreign currency derivatives is recognized partly or entirely in different financial period than exchange rate gains and losses arising from the hedged cash flows.\t
Interest rate derivatives, consisting of interest rate swaps, are used to reduce the volatility of interest expenses in the income statement and to adjust the duration of the debt portfolio.
Accounting principles
The Group is exposed to financial risks related especially to changes in foreign currency exchange rates and interest rates. Derivative financial instruments for hedging financial risk are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models. The fair values of these instru-ments are received from the counterparty bank or calculated to match the current market price.
Changes in fair value of derivative instruments are recognized in the income statement based on their nature either in the operative costs if the hedged item is an operative foreign currency transaction or as financial income or expenses, if the hedged item is a monetary transaction.
Fair values of derivative instruments are presented in the statement of financial position under short-term or long-term non-interest-bearing assets or liabilities based on their maturity.
Changes in the fair value of loans granted to foreign subsidiaries that form part of the net investment in a foreign operation, are recognized in translation differences in the statement of other comprehensive in-come. Accumulated fair value changes recognized in the items of other comprehensive income are reclassified into income statement when the foreign subsidiary is disposed.
Cash flow hedges
Following tables summarizes the nominal values and fair values of the Group\u2019s derivative instruments as at December 31, 2025.
2025 | 2024 | |||
EUR million | Nominal value | Fair value | Nominal value | Fair value |
Non-hedge accounting deriva-tive financial instruments | ||||
Interest rate swaps, 1 to 5 years | 35.0 | -0.5 | 35.0 | -0.8 |
Currency forwards, less than 12 months | 38.4 | 0.0 | 26.4 | -0.5 |
Total | 73.4 | -0.5 | 61.4 | -1.3 |
LIQUIDITY RISK
Liquidity risk is defined as financial distress or extraordinarily high fi-nancing cost arising due to a shortage of liquid funds in a situation where outstanding debt needs to be refinanced or where business con-ditions unexpectedly deteriorate and require financing. Transactional liquidity risk is defined as the risk of executing a financial transaction below fair market value, or not being able to execute the transaction at all, within a specific period of time.
The objective of liquidity risk management is to maintain sufficient liquidity, and to ensure that it is available fast enough without endanger-ing its value, in order to avoid uncertainty related to financial distress at all times.
Generally, the seasonality of the Group\u2019s cash flow is fairly predictable and Group Treasury monitors Group\u2019s liquidity position using the cash pooling system as well as regular cash flow and liquidity reporting.\t
The Group\u2019s interest bearing funding is mainly managed centrally by the Group Treasury. The Group seeks to reduce liquidity and refinanc-ing risks with balanced maturity profile of loans as well as by keeping sufficient amount of credit lines available. The Group has a EUR 80 mil-lion domestic commercial paper program, which together with Group\u2019s credit limits is utilized to balance the seasonality of the Group\u2019s cash flow. The size and maturity of issued commercial papers is decided by Group Treasury, based on forecasted cash flows, status of commercial paper markets and applicable interest rates. The renewal of commercial papers upon maturity creates certain liquidity risk, which is managed by maintaining sufficient other liquidity reserves available at the maturity dates During 2025 the commercial paper program was used as part of Group funding and competitively priced debt was acquired through this market.
The Group\u2019s 91.5 MEUR senior secured term and revolving credit facilities agreement includes financial covenants based on the net debt to EBITDA ratio (\u201cleverage ratio\u201d), the ratio of net debt to consolidated equity and the minimum liquidity. The financial leverage ratio covenant level for periods Q4/2025 to Q2/2026 is 3.80, for periods Q3/2026 to Q4/2027 3.50 and from Q1/2028 onwards 3.20. Covenants are regularly tested, either quarterly or on the last day of each month. The risk of breaching the covenants would trigger negotiations between the Group and lending banks to resolve the potential covenant breach, and to agree on actions to rectify the situation. In the unlikely event of unresolved covenant breach, the lending banks would have the right to call all or any part of the loans and related interest. On Q3/2025 and Q4/2025 testing dates, the leverage ratio landed at 2.93 and 3.61. Calculation of the covenants include customary adjustments mainly related to
items affecting comparability and asset disposals and therefore devi-ate from the reported figures elsewhere in this report. The Group is currently compliant with all financial covenants and expects to comply with future bank requirements as well. The Group\u2019s liquidity position remains good, and cash and cash equivalents amounted to 18.2 MEUR on December 31, 2025.
Below are presented the Group\u2019s unutilized credit limits as of Decem-ber 31, 2025. Group\u2019s domestic commercial paper program not sold at December 31, 2025 was EUR 65.0 million (2024 EUR 66.0 million).\t
Committed unutilized credit facilities
EUR million | 2025 | 2024 |
Overdraft facilities, expiring within one year | 14.6 | 11.2 |
Revolving credit facility, expiring beyond one year | 23.8 | 41.0 |
Total | 38.4 | 52.2 |
Maturity of the group\u2019s financial liabilities
The following are the contractual maturities of financial liabilities, including the possible interest payments.
2025
EUR million | Carrying value | Financial liabilities 4) | Contractual cash flows | 2026 | 2027 | 2028 | 2029onwards | Total |
Interest-bearing liabilities | ||||||||
Loans from financial institutions | 67.0 | 67.0 | 70.6 | 6.5 | 64.1 | 70.6 | ||
Commercial paper program | 15.0 | 15.0 | 15.0 | 15.0 | 15.0 | |||
Lease liabilities | 9.9 | 9.9 | 10.5 | 1.3 | 3.7 | 0.6 | 4.9 | 10.5 |
Non-interest-bearing liabilities | ||||||||
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 16.9 | 16.9 | |||
Derivative liabilities and receivables | ||||||||
Interest rate derivatives, non-hedge accounted | 0.5 | 0.5 | 0.5 | 0.4 | 0.2 | 0.5 | ||
Currency derivatives, non-hedge accounted | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||
Total | 128.3 | 109.2 | 113.5 | 40.1 | 68 | 0.6 | 4.9 | 113.6 |
4)The proportion of the carrying values which are classified as financial liabilities according to IFRS 9.
2024
EUR million | Carrying value | Financial liabilities 4) | Contractual cash flows | 2025 | 2026 | 2027 | 2028 onwards | Total |
Interest-bearing liabilities | ||||||||
Loans from financial institutions | 57.6 | 57.6 | 61.5 | 11.5 | 50.0 | 61.5 | ||
Commercial paper program | 14.0 | 14.0 | 14.0 | 14.0 | 14.0 | |||
Lease liabilities | 12.5 | 12.5 | 12.9 | 1.9 | 1.4 | 4.3 | 5.4 | 12.9 |
Non-interest-bearing liabilities | ||||||||
Trade and other non-interest-bearing payables | 39.5 | 19.9 | 19.9 | 19.9 | 19.9 | |||
Derivative liabilities and receivables | ||||||||
Interest rate derivatives, non-hedge accounted | 0.8 | 0.8 | 0.8 | 0.3 | 0.4 | 0.2 | 0.8 | |
Currency derivatives, non-hedge accounted | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | |||
Total | 124.9 | 105.3 | 109.6 | 48.0 | 51.8 | 4.5 | 5.4 | 109.6 |
CREDIT AND DEFAULT RISK
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, includ-ing deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The maximum exposure to credit risk is limited to the carrying value of the financial assets as included in the consolidated statement of financial position. The car-rying value of financial assets is disclosed in note 22.
The Group follows actively credit and default risks associated with customers and other counterparties. The Group\u2019s credit and default risk portfolio did not significantly change during the course of the financial pe-riod. The proportional amount of Group\u2019s trade receivables which are past due, increased from 2024 levels. Net allowance for credit losses related to trade receivables remained at the same level as in the 2024 financial year.
Business related credit risk
The Group\u2019s accounts receivables are generated by a large number of customers worldwide and do not include any significant concentrations of credit risk by customer or by geographical area.
The management of credit risk is allocated to each operative business unit. Before providing credit to any new customer, background checks are carried out. Cash, advance payments and letters of credit are also applied with new and existing customers. Each business unit is responsible for setting credit limits and monitoring it\u2019s credit customers\u2019 financial situ-ation. Customers\u2019 payment behavior is monitored regularly and delays in payments can trigger payment reminders, stopping the shipments, requirements for advance payments for future shipments and eventually legal collection procedures. In significant cases, business units consult with the Group\u2019s finance management before taking final decisions. In exceptional cases, payment terms may be renegotiated.\t
Group recognizes credit loss of trade receivables by applying sim-plified approach of expected credit loss according to IFRS 9, which uses a lifetime expected loss allowance. Group has estimated based on previous year\u2019s credit losses by aging category and nature as well as macroeconomic outlook in the near future, the expected credit loss provision. Trade receivables are monitored in client segment and loca-tion information.
Estimate on expected credit losses is based on management\u2019s best judgement.
More information on allowance for trade receivables is presented in note 15.
In the table below is presented analysis of trade receivables that were past due but not impaired.
Analysis of trade receivables that were past due but not impaired
EUR Million | 2025 | 2024 |
Neither past due nor impaired | 18.0 | 19.8 |
Past due but not impaired | ||
Less than 1 month | 3.2 | 2.9 |
1-3 months | 1.1 | 0.8 |
3-6 months | 0.5 | 0.4 |
Over 6 months | 0.3 | 0.5 |
Total | 23.1 | 24.4 |
Trade loss provision from expected credit loss model, %
% | 2025 |
Neither past due nor impaired | 0.2 |
Past due but not impaired | |
Less than 1 month | 0.9 |
1-3 months | 6.0 |
3-6 months | 11.0 |
Over 6 months | 20-100 |
Financial credit risk
Financial instruments contain an element of risk resulting from changes in market price of such instruments due to counterparties becoming less creditworthy or risk of loss due to counterparties being unable to meet their obligations. This risk is measured and monitored centrally by the Group Risk Management.
Financial credit risk is managed actively by limiting counterparties to a sufficient number of major banks and financial institutions and monitoring the credit worthiness and exposure size continuously as well as through entering into collateral agreements with certain counterpar-ties. The Group reduces credit risk by executing treasury transactions only with approved counterparties. All significant counterparties are rated with the minimum counterparty credit rating requirement being BBB (S&P). Foreign subsidiaries may have bank accounts in unrated financial institutions. In order to decrease credit risk associated with local banks used by subsidiaries in foreign countries, the subsidiar-ies are required to deposit their excess cash balances with the Group Treasury on an ongoing basis.
Group\u2019s all investments related to liquidity management are made in liquid instruments with low credit risk. For instance, the Group does not have investments in commercial papers.
CAPITAL MANAGEMENT
The objective of the Group\u2019s capital management is to ensure that it maintains healthy capital ratios in order to support its business and to maximize shareholder value.
The Group manages its capital structure and makes adjustments to it taking into account changes in economic conditions and requirements of strategy implementation. To maintain or develop the capital struc-ture, the Group may adjust the dividend payments and repayments of capital to shareholders by buying back shares, issue new shares and/or increase/decrease the amount of borrowings.
The Group\u2019s 91.5 MEUR senior secured term and revolving credit facilities agreement includes financial covenants based on the net debt to EBITDA ratio (\u201cleverage ratio\u201d), the ratio of net debt to consolidated equity and the minimum liquidity.
Group\u2019s objective for capital management is to keep:
1. Net gearing ratio below 100% and
2. Net interest-bearing debt to EBITDA (rolling 12 months) below 3.8,
and from 30 June 2026 onwards below 3.5.
The Group capital structure is reviewed by the Board regularly.
The achievement of the objectives for capital management are presented in the table below.
For definitions of key figures, see page 84.
Target | 2025 | 2024 | |
Net gearing % | below 100% | 54.0 | 39.8 |
Net interest-bearing debt to EBITDA(rolling 12 months) | below 3.8 | 3.6 | 2.9 |
Calculation of the covenants include customary adjustments main-ly related to items affecting comparability and asset disposals and therefore deviate from the reported figures elsewhere in this re-port. The Group is currently compliant with all financial covenants and expects to comply with future bank requirements as well.
Definitions of the alternative performance
measures are presented on page 84.
MARKET RISKS
The Group\u2019s market risks are mainly caused by changes in foreign ex-change and interest rates. These changes may have a significant impact on the Group\u2019s earnings, cash flows and balance sheet. The Group is also exposed to market price changes of certain raw materials, mainly metals and plastics, which are priced on commodity markets.
1. Foreign exchange risk
Foreign currency risk is the risk that the fair value or future cash flows will fluctuate because of changes in foreign exchange rates. The Group\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the Group\u2019s operating activities, when revenue or expense is denominated in a foreign currency, financing, when debt is denominated in a foreign currency, and the Group\u2019s net investments in foreign subsidiaries.
The Group\u2019s foreign exchange risk is managed by the business units and Group Risk Management in accordance with the Foreign Exchange Risk Management policy approved by the Board of Directors.\t
Foreign exchange transaction risk
Foreign currency denominated receivables and payables that are ex-posed to movements in foreign exchange rates. Income and expenses within different currencies net each other out to some extent, creating thus an effective natural hedge. The remaining, estimated 12-15 month commercial net exposure is then systematically hedged by using de-rivative instruments. Depending on whether foreign currency monetary receivables and payables relate to sales and purchases or financial items, the foreign exchange gains and losses are recognized in the income statement either above or below operating profit.
The Group has also intra-group loans denominated in currencies that exposes the Group to currency risk that is not fully eliminated
on consolidation. Depending on whether these loans are classified as net investments on foreign operations or loan receivables, the foreign exchange gains and losses are recognized in the other comprehensive income or income statement. The connections possibly prevailing be-tween different currencies are not taken into account, e.g. US dollar and Hong Kong dollar are considered as separate currencies in this analysis.
Group Risk Management is responsible for monitoring the Group\u2019s consolidated currency risk exposure and when needed, enters into de-rivative transactions with external counterparties.
Derivative instruments that are used for hedging purposes are mainly short-term and can include forward contracts, option contracts and structured instruments. Because the Group does not apply hedge ac-counting on currency derivatives, the income statement effect arising from fair value changes of derivative instruments is recognized partly or entirely in different financial periods than exchange rate gains and losses arising from the hedged cash flows.
In 2025 currency derivatives that are used for operative hedging pur-poses had an income statement effect of EUR 0.7 million (2024: EUR -0.7 million). Fair values and nominal values of currency derivatives are summarized under section 4. Derivatives.
At the end of 2025 and 2024 the following currencies represent a significant portion of the currency mix outstanding:
2025
EUR million | USD | CAD | IDR | CLP | PLN |
Transaction risk and hedging | |||||
Transaction exposure* | 3.0 | 4.6 | 5.2 | 3.7 | 4.9 |
Hedges | -0.5 | 2.3 | -0.8 |
2024
EUR million | USD | CAD | IDR | CLP | RUB |
Transaction risk and hedging | |||||
Transaction exposure* | 22.9 | 11.3 | 6.5 | 3.3 | 2.7 |
Hedges | -10.7 | -3.4 | -0.9 | -0.8 |
*If US dollar and Hong Kong dollar peg would be taken into account in this analysis, the combined USD and HKD transaction exposure would be 2.2 MEUR (2024: 21.9 MEUR) .
Foreign exchange translation risk
The group is exposed to currency translation risk through its investments in foreign subsidiaries and associated companies with equities\u2019 denominated in foreign currencies. The most significant translation exposures are in USD, HKD, IDR, CAD and RUB, which comprise approximately 81.1% of the total translation exposure. In the Group consolidation equity changes resulting from movements in foreign exchange rates are presented as translation differences within the equity.
The Group Risk Management monitors regularly the amounts of net invest-ments denominated in foreign currencies and when needed, enters into hedg-ing transactions in order to reduce the volatility in equity in the consolidated balance sheet. During 2025 the Group did not hedge any equity exposure.
The total non-euro denominated equity excluding net income of the Group\u2019s subsidiaries and associated companies was 126.3 as of Decem-ber 31, 2025 (2024: EUR 108.2 million). The most significant translation exposures are summarized in the following table.
Group translation exposure
EUR million | 2025 | 2024 |
USD | 69.0 | 70.1 |
HKD | 6.7 | 6.1 |
IDR | 8.2 | 6.6 |
CAD | 12.6 | 8.3 |
RUB | 5.9 | 4.1 |
Total | 102.4 | 95.2 |
Sensitivity analysis
Sensitivity analysis is based on the following assumptions and factors:\t
The sensitivity analysis is based on change of value in a single an-alyzed currency and assumes other variables (including values of other currencies) to remain unchanged. The connections possibly prevailing between some currencies are not taken into account.
The sensitivity is analyzed against the income statement and bal-ance sheet exchange rates prevailing at December 31, 2025.
The analysis includes the effect of income statement transactions made in the analyzed currency between January 1 and December 31 in Group companies, whose functional currency is other than the analyzed currency (so called transaction impact) as well as in Group companies, whose functional currency equals to the ana-lyzed currency (so called translation impact). The analysis takes into account the currency forward contracts in place at December 31. The sensitivity analysis of income statement transactions excludes Group\u2019s internal items as these net out.
The sensitivity analysis includes the effect of the translation of subsidiaries\u2019 equity as per December 31 in subsidiaries, whose reporting currency equals to the analyzed currency.
Group transaction risk sensitivity analysis
The effect of a 10% weakening of most significant foreign currencies (against euro) in euros:
2025
EUR million | USD | CAD | IDR | CLP | PLN |
Operating profit | -0.4 | -0.8 | 0.2 | -0.4 | -0.2 |
Equity* | -6.9 | -1.3 | -0.8 | -0.4 | -0.3 |
2024
EUR million | USD | CAD | IDR | CLP | RUB |
Operating profit | 0.1 | -1.3 | 0.1 | -0.2 | -0.2 |
Equity* | -7.0 | -0.8 | -0.7 | -0.3 | -0.4 |
*Without the effect of net income.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__113": { "value": "MARKET RISKS
The Group\u2019s market risks are mainly caused by changes in foreign ex-change and interest rates. These changes may have a significant impact on the Group\u2019s earnings, cash flows and balance sheet. The Group is also exposed to market price changes of certain raw materials, mainly metals and plastics, which are priced on commodity markets.
1. Foreign exchange risk
Foreign currency risk is the risk that the fair value or future cash flows will fluctuate because of changes in foreign exchange rates. The Group\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the Group\u2019s operating activities, when revenue or expense is denominated in a foreign currency, financing, when debt is denominated in a foreign currency, and the Group\u2019s net investments in foreign subsidiaries.
The Group\u2019s foreign exchange risk is managed by the business units and Group Risk Management in accordance with the Foreign Exchange Risk Management policy approved by the Board of Directors.\t
Foreign exchange transaction risk
Foreign currency denominated receivables and payables that are ex-posed to movements in foreign exchange rates. Income and expenses within different currencies net each other out to some extent, creating thus an effective natural hedge. The remaining, estimated 12-15 month commercial net exposure is then systematically hedged by using de-rivative instruments. Depending on whether foreign currency monetary receivables and payables relate to sales and purchases or financial items, the foreign exchange gains and losses are recognized in the income statement either above or below operating profit.
The Group has also intra-group loans denominated in currencies that exposes the Group to currency risk that is not fully eliminated
on consolidation. Depending on whether these loans are classified as net investments on foreign operations or loan receivables, the foreign exchange gains and losses are recognized in the other comprehensive income or income statement. The connections possibly prevailing be-tween different currencies are not taken into account, e.g. US dollar and Hong Kong dollar are considered as separate currencies in this analysis.
Group Risk Management is responsible for monitoring the Group\u2019s consolidated currency risk exposure and when needed, enters into de-rivative transactions with external counterparties.
Derivative instruments that are used for hedging purposes are mainly short-term and can include forward contracts, option contracts and structured instruments. Because the Group does not apply hedge ac-counting on currency derivatives, the income statement effect arising from fair value changes of derivative instruments is recognized partly or entirely in different financial periods than exchange rate gains and losses arising from the hedged cash flows.
In 2025 currency derivatives that are used for operative hedging pur-poses had an income statement effect of EUR 0.7 million (2024: EUR -0.7 million). Fair values and nominal values of currency derivatives are summarized under section 4. Derivatives.
At the end of 2025 and 2024 the following currencies represent a significant portion of the currency mix outstanding:
2025
EUR million | USD | CAD | IDR | CLP | PLN |
Transaction risk and hedging | |||||
Transaction exposure* | 3.0 | 4.6 | 5.2 | 3.7 | 4.9 |
Hedges | -0.5 | 2.3 | -0.8 |
2024
EUR million | USD | CAD | IDR | CLP | RUB |
Transaction risk and hedging | |||||
Transaction exposure* | 22.9 | 11.3 | 6.5 | 3.3 | 2.7 |
Hedges | -10.7 | -3.4 | -0.9 | -0.8 |
*If US dollar and Hong Kong dollar peg would be taken into account in this analysis, the combined USD and HKD transaction exposure would be 2.2 MEUR (2024: 21.9 MEUR) .
Foreign exchange translation risk
The group is exposed to currency translation risk through its investments in foreign subsidiaries and associated companies with equities\u2019 denominated in foreign currencies. The most significant translation exposures are in USD, HKD, IDR, CAD and RUB, which comprise approximately 81.1% of the total translation exposure. In the Group consolidation equity changes resulting from movements in foreign exchange rates are presented as translation differences within the equity.
The Group Risk Management monitors regularly the amounts of net invest-ments denominated in foreign currencies and when needed, enters into hedg-ing transactions in order to reduce the volatility in equity in the consolidated balance sheet. During 2025 the Group did not hedge any equity exposure.
The total non-euro denominated equity excluding net income of the Group\u2019s subsidiaries and associated companies was 126.3 as of Decem-ber 31, 2025 (2024: EUR 108.2 million). The most significant translation exposures are summarized in the following table.
Group translation exposure
EUR million | 2025 | 2024 |
USD | 69.0 | 70.1 |
HKD | 6.7 | 6.1 |
IDR | 8.2 | 6.6 |
CAD | 12.6 | 8.3 |
RUB | 5.9 | 4.1 |
Total | 102.4 | 95.2 |
Sensitivity analysis
Sensitivity analysis is based on the following assumptions and factors:\t
The sensitivity analysis is based on change of value in a single an-alyzed currency and assumes other variables (including values of other currencies) to remain unchanged. The connections possibly prevailing between some currencies are not taken into account.
The sensitivity is analyzed against the income statement and bal-ance sheet exchange rates prevailing at December 31, 2025.
The analysis includes the effect of income statement transactions made in the analyzed currency between January 1 and December 31 in Group companies, whose functional currency is other than the analyzed currency (so called transaction impact) as well as in Group companies, whose functional currency equals to the ana-lyzed currency (so called translation impact). The analysis takes into account the currency forward contracts in place at December 31. The sensitivity analysis of income statement transactions excludes Group\u2019s internal items as these net out.
The sensitivity analysis includes the effect of the translation of subsidiaries\u2019 equity as per December 31 in subsidiaries, whose reporting currency equals to the analyzed currency.
Group transaction risk sensitivity analysis
The effect of a 10% weakening of most significant foreign currencies (against euro) in euros:
2025
EUR million | USD | CAD | IDR | CLP | PLN |
Operating profit | -0.4 | -0.8 | 0.2 | -0.4 | -0.2 |
Equity* | -6.9 | -1.3 | -0.8 | -0.4 | -0.3 |
2024
EUR million | USD | CAD | IDR | CLP | RUB |
Operating profit | 0.1 | -1.3 | 0.1 | -0.2 | -0.2 |
Equity* | -7.0 | -0.8 | -0.7 | -0.3 | -0.4 |
*Without the effect of net income.
2. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with floating interest rates. The Group\u2019s interest-bearing liabilities have mainly an interest period length shorter than one year.
The Group\u2019s funding, and consequently also interest rate risk, is man-aged centrally by the Group\u2019s parent company. Interest rate risk, cover-ing cash flow and fair value risk, is analyzed regurarly by the Group Risk Management who is also responsible of taking the actions needed to change the Group\u2019s risk position. These actions include changing the currency split of the external loan portfolio, selection between differ-ent sources of financing, changing the interest rate duration as well as entering into transactions in derivative financial instruments.\t
Derivative instruments that are used for hedging purposes consist of interest rate swaps, where the Group pays fixed rate interest and re-ceives a variable rate interest. Fair values and nominal values of interest rate swaps are presented under section 4. Derivatives.
Interest rate sensitivity analysis
Below is presented the effect of liabilities with variable interest rate and interest rate swaps on net income and equity if there was a one percentage point increase in interest rates. The sensitivity analysis is based on following assumptions and factors:
All other variables, in particular foreign exchange rates, are as-sumed to remain unchanged.
The sensitivity is analyzed against interest rates applicable on December 31.
The sensitivity analysis includes the liabilities and interest rate swaps with variable interest rate in force on December 31.
2025 | 2024 | |
EUR million | Net income (net of tax) | Net income (net of tax) |
Loans from financial institutions with variable interest rate | -0.3 | 0.2 |
3. Other market price risks
The Group purchases certain raw-materials, which are priced on global financial markets. The value of these purchases is relatively low and actions regarding the management of price risk are decided on an performed locally in each manufacturing unit. The Group does not cur-rently hedge commodity price risk.
The amount of the Group\u2019s investments in available-for-sale financial assets is insignificant and consists of investments in real estate and other unquoted shares for which reliable market values are not obtainable.
4. Derivatives
The Group uses derivative instruments, such as forward contracts, option contracts, interest rate swaps and structured instruments, to manage foreign exchange and interest rate risk in accordance with the guidelines set by the The Group\u2019s Risk Management policy.
Foreign currency derivatives are used to reduce the uncertainty in the fair value of future cash flows that is created by changes in foreign exchange rates. The fair values of the foreign currency derivatives that do not qualify as hedging instruments in accordance with IFRS 9, are recognized based on their nature either in operative costs, if the hedge item is an operative transaction, or in financial income and expenses, if the hedged item is a monetary transaction. Because hedge accounting is not applied, the P&L effect arising from foreign currency derivatives is recognized partly or entirely in different financial period than exchange rate gains and losses arising from the hedged cash flows.\t
Interest rate derivatives, consisting of interest rate swaps, are used to reduce the volatility of interest expenses in the income statement and to adjust the duration of the debt portfolio.
Accounting principles
The Group is exposed to financial risks related especially to changes in foreign currency exchange rates and interest rates. Derivative financial instruments for hedging financial risk are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models. The fair values of these instru-ments are received from the counterparty bank or calculated to match the current market price.
Changes in fair value of derivative instruments are recognized in the income statement based on their nature either in the operative costs if the hedged item is an operative foreign currency transaction or as financial income or expenses, if the hedged item is a monetary transaction.
Fair values of derivative instruments are presented in the statement of financial position under short-term or long-term non-interest-bearing assets or liabilities based on their maturity.
Changes in the fair value of loans granted to foreign subsidiaries that form part of the net investment in a foreign operation, are recognized in translation differences in the statement of other comprehensive in-come. Accumulated fair value changes recognized in the items of other comprehensive income are reclassified into income statement when the foreign subsidiary is disposed.
Cash flow hedges
Following tables summarizes the nominal values and fair values of the Group\u2019s derivative instruments as at December 31, 2025.
2025 | 2024 | |||
EUR million | Nominal value | Fair value | Nominal value | Fair value |
Non-hedge accounting deriva-tive financial instruments | ||||
Interest rate swaps, 1 to 5 years | 35.0 | -0.5 | 35.0 | -0.8 |
Currency forwards, less than 12 months | 38.4 | 0.0 | 26.4 | -0.5 |
Total | 73.4 | -0.5 | 61.4 | -1.3 |
4. Derivatives
The Group uses derivative instruments, such as forward contracts, option contracts, interest rate swaps and structured instruments, to manage foreign exchange and interest rate risk in accordance with the guidelines set by the The Group\u2019s Risk Management policy.
Foreign currency derivatives are used to reduce the uncertainty in the fair value of future cash flows that is created by changes in foreign exchange rates. The fair values of the foreign currency derivatives that do not qualify as hedging instruments in accordance with IFRS 9, are recognized based on their nature either in operative costs, if the hedge item is an operative transaction, or in financial income and expenses, if the hedged item is a monetary transaction. Because hedge accounting is not applied, the P&L effect arising from foreign currency derivatives is recognized partly or entirely in different financial period than exchange rate gains and losses arising from the hedged cash flows.\t
Interest rate derivatives, consisting of interest rate swaps, are used to reduce the volatility of interest expenses in the income statement and to adjust the duration of the debt portfolio.
Accounting principles
The Group is exposed to financial risks related especially to changes in foreign currency exchange rates and interest rates. Derivative financial instruments for hedging financial risk are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models. The fair values of these instru-ments are received from the counterparty bank or calculated to match the current market price.
Changes in fair value of derivative instruments are recognized in the income statement based on their nature either in the operative costs if the hedged item is an operative foreign currency transaction or as financial income or expenses, if the hedged item is a monetary transaction.
Fair values of derivative instruments are presented in the statement of financial position under short-term or long-term non-interest-bearing assets or liabilities based on their maturity.
Changes in the fair value of loans granted to foreign subsidiaries that form part of the net investment in a foreign operation, are recognized in translation differences in the statement of other comprehensive in-come. Accumulated fair value changes recognized in the items of other comprehensive income are reclassified into income statement when the foreign subsidiary is disposed.
Cash flow hedges
Following tables summarizes the nominal values and fair values of the Group\u2019s derivative instruments as at December 31, 2025.
2025 | 2024 | |||
EUR million | Nominal value | Fair value | Nominal value | Fair value |
Non-hedge accounting deriva-tive financial instruments | ||||
Interest rate swaps, 1 to 5 years | 35.0 | -0.5 | 35.0 | -0.8 |
Currency forwards, less than 12 months | 38.4 | 0.0 | 26.4 | -0.5 |
Total | 73.4 | -0.5 | 61.4 | -1.3 |
LIQUIDITY RISK
Liquidity risk is defined as financial distress or extraordinarily high fi-nancing cost arising due to a shortage of liquid funds in a situation where outstanding debt needs to be refinanced or where business con-ditions unexpectedly deteriorate and require financing. Transactional liquidity risk is defined as the risk of executing a financial transaction below fair market value, or not being able to execute the transaction at all, within a specific period of time.
The objective of liquidity risk management is to maintain sufficient liquidity, and to ensure that it is available fast enough without endanger-ing its value, in order to avoid uncertainty related to financial distress at all times.
Generally, the seasonality of the Group\u2019s cash flow is fairly predictable and Group Treasury monitors Group\u2019s liquidity position using the cash pooling system as well as regular cash flow and liquidity reporting.\t
The Group\u2019s interest bearing funding is mainly managed centrally by the Group Treasury. The Group seeks to reduce liquidity and refinanc-ing risks with balanced maturity profile of loans as well as by keeping sufficient amount of credit lines available. The Group has a EUR 80 mil-lion domestic commercial paper program, which together with Group\u2019s credit limits is utilized to balance the seasonality of the Group\u2019s cash flow. The size and maturity of issued commercial papers is decided by Group Treasury, based on forecasted cash flows, status of commercial paper markets and applicable interest rates. The renewal of commercial papers upon maturity creates certain liquidity risk, which is managed by maintaining sufficient other liquidity reserves available at the maturity dates During 2025 the commercial paper program was used as part of Group funding and competitively priced debt was acquired through this market.
The Group\u2019s 91.5 MEUR senior secured term and revolving credit facilities agreement includes financial covenants based on the net debt to EBITDA ratio (\u201cleverage ratio\u201d), the ratio of net debt to consolidated equity and the minimum liquidity. The financial leverage ratio covenant level for periods Q4/2025 to Q2/2026 is 3.80, for periods Q3/2026 to Q4/2027 3.50 and from Q1/2028 onwards 3.20. Covenants are regularly tested, either quarterly or on the last day of each month. The risk of breaching the covenants would trigger negotiations between the Group and lending banks to resolve the potential covenant breach, and to agree on actions to rectify the situation. In the unlikely event of unresolved covenant breach, the lending banks would have the right to call all or any part of the loans and related interest. On Q3/2025 and Q4/2025 testing dates, the leverage ratio landed at 2.93 and 3.61. Calculation of the covenants include customary adjustments mainly related to
items affecting comparability and asset disposals and therefore devi-ate from the reported figures elsewhere in this report. The Group is currently compliant with all financial covenants and expects to comply with future bank requirements as well. The Group\u2019s liquidity position remains good, and cash and cash equivalents amounted to 18.2 MEUR on December 31, 2025.
Below are presented the Group\u2019s unutilized credit limits as of Decem-ber 31, 2025. Group\u2019s domestic commercial paper program not sold at December 31, 2025 was EUR 65.0 million (2024 EUR 66.0 million).\t
Committed unutilized credit facilities
EUR million | 2025 | 2024 |
Overdraft facilities, expiring within one year | 14.6 | 11.2 |
Revolving credit facility, expiring beyond one year | 23.8 | 41.0 |
Total | 38.4 | 52.2 |
Maturity of the group\u2019s financial liabilities
The following are the contractual maturities of financial liabilities, including the possible interest payments.
2025
EUR million | Carrying value | Financial liabilities 4) | Contractual cash flows | 2026 | 2027 | 2028 | 2029onwards | Total |
Interest-bearing liabilities | ||||||||
Loans from financial institutions | 67.0 | 67.0 | 70.6 | 6.5 | 64.1 | 70.6 | ||
Commercial paper program | 15.0 | 15.0 | 15.0 | 15.0 | 15.0 | |||
Lease liabilities | 9.9 | 9.9 | 10.5 | 1.3 | 3.7 | 0.6 | 4.9 | 10.5 |
Non-interest-bearing liabilities | ||||||||
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 16.9 | 16.9 | |||
Derivative liabilities and receivables | ||||||||
Interest rate derivatives, non-hedge accounted | 0.5 | 0.5 | 0.5 | 0.4 | 0.2 | 0.5 | ||
Currency derivatives, non-hedge accounted | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||
Total | 128.3 | 109.2 | 113.5 | 40.1 | 68 | 0.6 | 4.9 | 113.6 |
4)The proportion of the carrying values which are classified as financial liabilities according to IFRS 9.
2024
EUR million | Carrying value | Financial liabilities 4) | Contractual cash flows | 2025 | 2026 | 2027 | 2028 onwards | Total |
Interest-bearing liabilities | ||||||||
Loans from financial institutions | 57.6 | 57.6 | 61.5 | 11.5 | 50.0 | 61.5 | ||
Commercial paper program | 14.0 | 14.0 | 14.0 | 14.0 | 14.0 | |||
Lease liabilities | 12.5 | 12.5 | 12.9 | 1.9 | 1.4 | 4.3 | 5.4 | 12.9 |
Non-interest-bearing liabilities | ||||||||
Trade and other non-interest-bearing payables | 39.5 | 19.9 | 19.9 | 19.9 | 19.9 | |||
Derivative liabilities and receivables | ||||||||
Interest rate derivatives, non-hedge accounted | 0.8 | 0.8 | 0.8 | 0.3 | 0.4 | 0.2 | 0.8 | |
Currency derivatives, non-hedge accounted | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | |||
Total | 124.9 | 105.3 | 109.6 | 48.0 | 51.8 | 4.5 | 5.4 | 109.6 |
Maturity of the group\u2019s financial liabilities
The following are the contractual maturities of financial liabilities, including the possible interest payments.
2025
EUR million | Carrying value | Financial liabilities 4) | Contractual cash flows | 2026 | 2027 | 2028 | 2029onwards | Total |
Interest-bearing liabilities | ||||||||
Loans from financial institutions | 67.0 | 67.0 | 70.6 | 6.5 | 64.1 | 70.6 | ||
Commercial paper program | 15.0 | 15.0 | 15.0 | 15.0 | 15.0 | |||
Lease liabilities | 9.9 | 9.9 | 10.5 | 1.3 | 3.7 | 0.6 | 4.9 | 10.5 |
Non-interest-bearing liabilities | ||||||||
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 16.9 | 16.9 | |||
Derivative liabilities and receivables | ||||||||
Interest rate derivatives, non-hedge accounted | 0.5 | 0.5 | 0.5 | 0.4 | 0.2 | 0.5 | ||
Currency derivatives, non-hedge accounted | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||
Total | 128.3 | 109.2 | 113.5 | 40.1 | 68 | 0.6 | 4.9 | 113.6 |
4)The proportion of the carrying values which are classified as financial liabilities according to IFRS 9.
2024
EUR million | Carrying value | Financial liabilities 4) | Contractual cash flows | 2025 | 2026 | 2027 | 2028 onwards | Total |
Interest-bearing liabilities | ||||||||
Loans from financial institutions | 57.6 | 57.6 | 61.5 | 11.5 | 50.0 | 61.5 | ||
Commercial paper program | 14.0 | 14.0 | 14.0 | 14.0 | 14.0 | |||
Lease liabilities | 12.5 | 12.5 | 12.9 | 1.9 | 1.4 | 4.3 | 5.4 | 12.9 |
Non-interest-bearing liabilities | ||||||||
Trade and other non-interest-bearing payables | 39.5 | 19.9 | 19.9 | 19.9 | 19.9 | |||
Derivative liabilities and receivables | ||||||||
Interest rate derivatives, non-hedge accounted | 0.8 | 0.8 | 0.8 | 0.3 | 0.4 | 0.2 | 0.8 | |
Currency derivatives, non-hedge accounted | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 | |||
Total | 124.9 | 105.3 | 109.6 | 48.0 | 51.8 | 4.5 | 5.4 | 109.6 |
CREDIT AND DEFAULT RISK
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, includ-ing deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The maximum exposure to credit risk is limited to the carrying value of the financial assets as included in the consolidated statement of financial position. The car-rying value of financial assets is disclosed in note 22.
The Group follows actively credit and default risks associated with customers and other counterparties. The Group\u2019s credit and default risk portfolio did not significantly change during the course of the financial pe-riod. The proportional amount of Group\u2019s trade receivables which are past due, increased from 2024 levels. Net allowance for credit losses related to trade receivables remained at the same level as in the 2024 financial year.
Business related credit risk
The Group\u2019s accounts receivables are generated by a large number of customers worldwide and do not include any significant concentrations of credit risk by customer or by geographical area.
The management of credit risk is allocated to each operative business unit. Before providing credit to any new customer, background checks are carried out. Cash, advance payments and letters of credit are also applied with new and existing customers. Each business unit is responsible for setting credit limits and monitoring it\u2019s credit customers\u2019 financial situ-ation. Customers\u2019 payment behavior is monitored regularly and delays in payments can trigger payment reminders, stopping the shipments, requirements for advance payments for future shipments and eventually legal collection procedures. In significant cases, business units consult with the Group\u2019s finance management before taking final decisions. In exceptional cases, payment terms may be renegotiated.\t
Group recognizes credit loss of trade receivables by applying sim-plified approach of expected credit loss according to IFRS 9, which uses a lifetime expected loss allowance. Group has estimated based on previous year\u2019s credit losses by aging category and nature as well as macroeconomic outlook in the near future, the expected credit loss provision. Trade receivables are monitored in client segment and loca-tion information.
Estimate on expected credit losses is based on management\u2019s best judgement.
More information on allowance for trade receivables is presented in note 15.
In the table below is presented analysis of trade receivables that were past due but not impaired.
Analysis of trade receivables that were past due but not impaired
EUR Million | 2025 | 2024 |
Neither past due nor impaired | 18.0 | 19.8 |
Past due but not impaired | ||
Less than 1 month | 3.2 | 2.9 |
1-3 months | 1.1 | 0.8 |
3-6 months | 0.5 | 0.4 |
Over 6 months | 0.3 | 0.5 |
Total | 23.1 | 24.4 |
Trade loss provision from expected credit loss model, %
% | 2025 |
Neither past due nor impaired | 0.2 |
Past due but not impaired | |
Less than 1 month | 0.9 |
1-3 months | 6.0 |
3-6 months | 11.0 |
Over 6 months | 20-100 |
Financial credit risk
Financial instruments contain an element of risk resulting from changes in market price of such instruments due to counterparties becoming less creditworthy or risk of loss due to counterparties being unable to meet their obligations. This risk is measured and monitored centrally by the Group Risk Management.
Financial credit risk is managed actively by limiting counterparties to a sufficient number of major banks and financial institutions and monitoring the credit worthiness and exposure size continuously as well as through entering into collateral agreements with certain counterpar-ties. The Group reduces credit risk by executing treasury transactions only with approved counterparties. All significant counterparties are rated with the minimum counterparty credit rating requirement being BBB (S&P). Foreign subsidiaries may have bank accounts in unrated financial institutions. In order to decrease credit risk associated with local banks used by subsidiaries in foreign countries, the subsidiar-ies are required to deposit their excess cash balances with the Group Treasury on an ongoing basis.
Group\u2019s all investments related to liquidity management are made in liquid instruments with low credit risk. For instance, the Group does not have investments in commercial papers.
CAPITAL MANAGEMENT
The objective of the Group\u2019s capital management is to ensure that it maintains healthy capital ratios in order to support its business and to maximize shareholder value.
The Group manages its capital structure and makes adjustments to it taking into account changes in economic conditions and requirements of strategy implementation. To maintain or develop the capital struc-ture, the Group may adjust the dividend payments and repayments of capital to shareholders by buying back shares, issue new shares and/or increase/decrease the amount of borrowings.
The Group\u2019s 91.5 MEUR senior secured term and revolving credit facilities agreement includes financial covenants based on the net debt to EBITDA ratio (\u201cleverage ratio\u201d), the ratio of net debt to consolidated equity and the minimum liquidity.
Group\u2019s objective for capital management is to keep:
1. Net gearing ratio below 100% and
2. Net interest-bearing debt to EBITDA (rolling 12 months) below 3.8,
and from 30 June 2026 onwards below 3.5.
The Group capital structure is reviewed by the Board regularly.
The achievement of the objectives for capital management are presented in the table below.
For definitions of key figures, see page 84.
Target | 2025 | 2024 | |
Net gearing % | below 100% | 54.0 | 39.8 |
Net interest-bearing debt to EBITDA(rolling 12 months) | below 3.8 | 3.6 | 2.9 |
Calculation of the covenants include customary adjustments main-ly related to items affecting comparability and asset disposals and therefore deviate from the reported figures elsewhere in this re-port. The Group is currently compliant with all financial covenants and expects to comply with future bank requirements as well.
Definitions of the alternative performance
measures are presented on page 84.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
22
FINANCIAL ASSETS AND LIABILITIES BY CATEGORIES AND FAIR VALUES
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | |||
Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note | |||||
FINANCIAL ASSETS | |||||||
Financial assets measured at amortized cost2) | |||||||
Non-current financial assets | |||||||
Loan receivables | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 | 15 |
Trade and other non-interest-bearing receivables | 0.3 | 0.0 | 0.0 | 0.3 | 0.0 | 0.0 | 15 |
Current financial assets | |||||||
Cash and cash equivalents | 18.2 | 18.2 | 18.2 | 21.7 | 21.7 | 21.7 | 17 |
Trade and other non-interest-bearing receivables | 28.9 | 23.1 | 23.1 | 31.1 | 24.4 | 24.4 | 15 |
Fair value through other comprehensive income | |||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 14 |
Financial assets at fair value through income statement | |||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 15,21 |
1) The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2) Fair value hierarchy level 2.
2025 | 2024 | ||||||
EUR million | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Carrying value | Financial assets and liabilities 1) | Fair value of financial assets and liabilities 2) | Note |
FINANCIAL LIABILITIES | |||||||
Financial liabilities at fair value through income statement | |||||||
Interest rate and currency derivatives - non-hedge accounted | 0.6 | 0.6 | 0.6 | 1.4 | 1.4 | 1.4 | 21, 24 |
Financial liabilities measured at amortized cost2) | |||||||
Non-current financial liabilities | |||||||
Loans from financial institutions | 63.5 | 63.5 | 63.6 | 49.4 | 49.4 | 49.6 | 23 |
Other non-interest-bearing liabilities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 23 |
Current financial liabilities | |||||||
Loans from financial institutions | 3.5 | 3.5 | 3.5 | 8.3 | 8.3 | 8.3 | 23 |
Commercial paper program | 15.0 | 15.0 | 15.0 | 14.0 | 14.0 | 14.0 | 23 |
Trade and other non-interest-bearing payables | 35.9 | 16.9 | 16.9 | 39.5 | 19.9 | 19.9 | 24 |
1)The proportion of the carrying value which is classified as financial assets and liabilities according to IFRS 9.
2)Fair value hierarchy level 2.
FAIR VALUE HIERARCHY OF THE FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
2025 | 2024 | |||||||
EUR million | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 |
FINANCIAL ASSETS AT FAIR VALUE | ||||||||
Fair value through other comprehensive income | ||||||||
Other shares | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Financial assets at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.1 | 0.1 | 0.1 | 0.1 | ||||
Total | 0.2 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
FINANCIAL LIABILITIES AT FAIR VALUE | ||||||||
Financial liabilities at fair value through income statement | ||||||||
Currency and interest derivatives - non-hedge accounted | 0.6 | 0.6 | 1.4 | 1.4 | ||||
Total | 0.6 | 0.6 | 1.4 | 1.4 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value hierarchy levels
The fair values of the financial assets and liabilities on the hierarchy level 1 are based on quoted market prices of similar financial instru-ments traded in an active market. Currently there are no financial in-struments on level 1.
The fair values of the financial assets and liabilities on the hierarchy level 2 are based on other price information than quoted market prices for a significant part of the valuation. This information is supported by observable market inputs either directly (i.e. prices) or indirectly (i.e. derived from prices).
The fair values of the financial assets and liabilities on the hierarchy level 3 are calculated using a valuation technique based on assump-tions that are not supported by available observable market data. For example management estimates are utilized in generally accepted valu-ation models of the financial instruments on the Level 3.
The fair value hierarchy level, into which the entire financial asset or liability is classified, is determined based on the lowest-hierarchy-level information being significant for the valuation of that particular finan-cial asset or liability. The significance of the information is estimated considering the financial asset or liability in its entirety.
No significant transfers between the hierarchy levels took place dur-ing the financial period.
Other shares
Other shares comprise of unlisted shares that are measured at fair value. Certain unlisted shares for which fair values cannot be measured reliably are measured at cost less possible impairment.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
Current financial assets and liabilities
Due to their short maturity, the fair value of current financial assets and liabilities is regarded as corresponding to their original carrying amount.
Non-current financial assets
The fair value of non-current financial assets is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current interest-bearing liabilities
On December 31, 2025, 21.9 % (2024: 0.0%) of non-current loans based on floating rates was connected to one-month euribor or similar and the rest to maximum six-month Euribor or similar. Therefore, the fair value of non-current loans based on floating rates is regarded as equaling their book value. A part of non-current loans on floating rates is hedged with separate interest rate derivatives which are described in note 21. The fair value of non-current loans on fixed rates is based on discounted future cash flows. The discount rate used corresponds to the market rate on the balance sheet date.
Non-current non-interest-bearing liabilities
Contingent considerations of business combinations and other acquisi-tions are recognized at fair value on the date of acquisition. Determina-tion of fair values is based on discounted future cash flows.
Derivatives
All derivatives are initially recognized at fair value on the date derivative contract is entered into, and are subsequently remeasured at fair value on each balance sheet date. Determination of fair values is based on quoted market prices and rates, discounting of cash flows and option valuation models.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:7437009TB42O2AB3JW91", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s7__6__132": { "value": "23
INTEREST-BEARING LIABILITIES
Accounting principles
Financial liabilities are initially recognized at the fair value of the consideration received, including directly attributable transaction costs. After initial recognition, financial liabilities are measured at amortized cost using the effective interest method. Commercial papers are measured at amortized cost. Gains and losses are recognized in the income statement when the financial liability is derecognized, impaired and through the amortization process.
Financial liabilities include current and non-current liabilities and they can be interest-bearing or non-interest-bearing.
EUR million | Average interest rate 31.12.2025, %1) | 2025 | 2024 |
Non-current interest-bearing liabilities | |||
Loans from financial institutions | 4.62 | 63.5 | 49.4 |
Lease liabilities | 3.88 | 5.6 | 7.6 |
Current interest-bearing liabilities | |||
Loans from financial institutions | 4.71 | 0.4 | 4.2 |
Current portion of non-current loans from financial institutions | 4.57 | 3.1 | 4.1 |
Commercial paper program | 3.63 | 15.0 | 14.0 |
Lease liabilities | 4.7 | 4.3 | 4.8 |
Total | 91.8 | 84.1 |
1)Average interest rates are calculated without the effect of the interest rate swaps. More information in note 21.
Fair values of financial liabilities are presented in the note 22.
INTEREST-BEARING LIABILITIES BY CURRENCY
2025 | 2024 | |||
EUR million | Non-current | Current | Non-current | Current |
Loans from financial institutions | ||||
EUR | 63.5 | 0.4 | 49.4 | 4.2 |
Commercial paper program | ||||
EUR | 15.0 | 14.0 | ||
Total | 63.5 | 15.4 | 49.4 | 18.2 |
23
INTEREST-BEARING LIABILITIES
Accounting principles
Financial liabilities are initially recognized at the fair value of the consideration received, including directly attributable transaction costs. After initial recognition, financial liabilities are measured at amortized cost using the effective interest method. Commercial papers are measured at amortized cost. Gains and losses are recognized in the income statement when the financial liability is derecognized, impaired and through the amortization process.
Financial liabilities include current and non-current liabilities and they can be interest-bearing or non-interest-bearing.
EUR million | Average interest rate 31.12.2025, %1) | 2025 | 2024 |
Non-current interest-bearing liabilities | |||
Loans from financial institutions | 4.62 | 63.5 | 49.4 |
Lease liabilities | 3.88 | 5.6 | 7.6 |
Current interest-bearing liabilities | |||
Loans from financial institutions | 4.71 | 0.4 | 4.2 |
Current portion of non-current loans from financial institutions | 4.57 | 3.1 | 4.1 |
Commercial paper program | 3.63 | 15.0 | 14.0 |
Lease liabilities | 4.7 | 4.3 | 4.8 |
Total | 91.8 | 84.1 |
1)Average interest rates are calculated without the effect of the interest rate swaps. More information in note 21.
Fair values of financial liabilities are presented in the note 22.
INTEREST-BEARING LIABILITIES BY CURRENCY
2025 | 2024 | |||
EUR million | Non-current | Current | Non-current | Current |
Loans from financial institutions | ||||
EUR | 63.5 | 0.4 | 49.4 | 4.2 |
Commercial paper program | ||||
EUR | 15.0 | 14.0 | ||
Total | 63.5 | 15.4 | 49.4 | 18.2 |
23
INTEREST-BEARING LIABILITIES
Accounting principles
Financial liabilities are initially recognized at the fair value of the consideration received, including directly attributable transaction costs. After initial recognition, financial liabilities are measured at amortized cost using the effective interest method. Commercial papers are measured at amortized cost. Gains and losses are recognized in the income statement when the financial liability is derecognized, impaired and through the amortization process.
Financial liabilities include current and non-current liabilities and they can be interest-bearing or non-interest-bearing.
EUR million | Average interest rate 31.12.2025, %1) | 2025 | 2024 |
Non-current interest-bearing liabilities | |||
Loans from financial institutions | 4.62 | 63.5 | 49.4 |
Lease liabilities | 3.88 | 5.6 | 7.6 |
Current interest-bearing liabilities | |||
Loans from financial institutions | 4.71 | 0.4 | 4.2 |
Current portion of non-current loans from financial institutions | 4.57 | 3.1 | 4.1 |
Commercial paper program | 3.63 | 15.0 | 14.0 |
Lease liabilities | 4.7 | 4.3 | 4.8 |
Total | 91.8 | 84.1 |
1)Average interest rates are calculated without the effect of the interest rate swaps. More information in note 21.
Fair values of financial liabilities are presented in the note 22.
INTEREST-BEARING LIABILITIES BY CURRENCY
2025 | 2024 | |||
EUR million | Non-current | Current | Non-current | Current |
Loans from financial institutions | ||||
EUR | 63.5 | 0.4 | 49.4 | 4.2 |
Commercial paper program | ||||
EUR | 15.0 | 14.0 | ||
Total | 63.5 | 15.4 | 49.4 | 18.2 |
23
INTEREST-BEARING LIABILITIES
Accounting principles
Financial liabilities are initially recognized at the fair value of the consideration received, including directly attributable transaction costs. After initial recognition, financial liabilities are measured at amortized cost using the effective interest method. Commercial papers are measured at amortized cost. Gains and losses are recognized in the income statement when the financial liability is derecognized, impaired and through the amortization process.
Financial liabilities include current and non-current liabilities and they can be interest-bearing or non-interest-bearing.
EUR million | Average interest rate 31.12.2025, %1) | 2025 | 2024 |
Non-current interest-bearing liabilities | |||
Loans from financial institutions | 4.62 | 63.5 | 49.4 |
Lease liabilities | 3.88 | 5.6 | 7.6 |
Current interest-bearing liabilities | |||
Loans from financial institutions | 4.71 | 0.4 | 4.2 |
Current portion of non-current loans from financial institutions | 4.57 | 3.1 | 4.1 |
Commercial paper program | 3.63 | 15.0 | 14.0 |
Lease liabilities | 4.7 | 4.3 | 4.8 |
Total | 91.8 | 84.1 |
1)Average interest rates are calculated without the effect of the interest rate swaps. More information in note 21.
Fair values of financial liabilities are presented in the note 22.
INTEREST-BEARING LIABILITIES BY CURRENCY
2025 | 2024 | |||
EUR million | Non-current | Current | Non-current | Current |
Loans from financial institutions | ||||
EUR | 63.5 | 0.4 | 49.4 | 4.2 |
Commercial paper program | ||||
EUR | 15.0 | 14.0 | ||
Total | 63.5 | 15.4 | 49.4 | 18.2 |
24
NON-INTEREST-BEARING LIABILITIES
EUR million | 2025 | 2024 |
Non-current non-interest-bearing liabilities | ||
Derivatives | 0.5 | 0.8 |
Other non-current liabilities | 0.0 | 0.0 |
Current non-interest-bearing liabilities | ||
Trade payables | 16.9 | 19.9 |
Accrued employee-related expenses | 8.6 | 8.3 |
Other accrued expenses and deferred income | 6.7 | 7.3 |
Derivatives | 0.2 | 0.6 |
Advances received | 0.5 | 0.4 |
VAT payable | 0.6 | 0.6 |
Other current liabilities | 2.7 | 2.9 |
Total | 36.6 | 40.9 |
Fair values of financial liabilities are presented in the note 22.
24
NON-INTEREST-BEARING LIABILITIES
EUR million | 2025 | 2024 |
Non-current non-interest-bearing liabilities | ||
Derivatives | 0.5 | 0.8 |
Other non-current liabilities | 0.0 | 0.0 |
Current non-interest-bearing liabilities | ||
Trade payables | 16.9 | 19.9 |
Accrued employee-related expenses | 8.6 | 8.3 |
Other accrued expenses and deferred income | 6.7 | 7.3 |
Derivatives | 0.2 | 0.6 |
Advances received | 0.5 | 0.4 |
VAT payable | 0.6 | 0.6 |
Other current liabilities | 2.7 | 2.9 |
Total | 36.6 | 40.9 |
Fair values of financial liabilities are presented in the note 22.
24
NON-INTEREST-BEARING LIABILITIES
EUR million | 2025 | 2024 |
Non-current non-interest-bearing liabilities | ||
Derivatives | 0.5 | 0.8 |
Other non-current liabilities | 0.0 | 0.0 |
Current non-interest-bearing liabilities | ||
Trade payables | 16.9 | 19.9 |
Accrued employee-related expenses | 8.6 | 8.3 |
Other accrued expenses and deferred income | 6.7 | 7.3 |
Derivatives | 0.2 | 0.6 |
Advances received | 0.5 | 0.4 |
VAT payable | 0.6 | 0.6 |
Other current liabilities | 2.7 | 2.9 |
Total | 36.6 | 40.9 |
Fair values of financial liabilities are presented in the note 22.
24
NON-INTEREST-BEARING LIABILITIES
EUR million | 2025 | 2024 |
Non-current non-interest-bearing liabilities | ||
Derivatives | 0.5 | 0.8 |
Other non-current liabilities | 0.0 | 0.0 |
Current non-interest-bearing liabilities | ||
Trade payables | 16.9 | 19.9 |
Accrued employee-related expenses | 8.6 | 8.3 |
Other accrued expenses and deferred income | 6.7 | 7.3 |
Derivatives | 0.2 | 0.6 |
Advances received | 0.5 | 0.4 |
VAT payable | 0.6 | 0.6 |
Other current liabilities | 2.7 | 2.9 |
Total | 36.6 | 40.9 |
Fair values of financial liabilities are presented in the note 22.
25
COMMITMENTS AND CONTINGENCIES
The Group\u2019s senior facilities are secured and has an issued business
mortgage notes with nominal value amounting to 137.8 MEUR. In addi-tion, the Group has pledged subsidiary shares of Marttiini Oy, KL-Teho
Oy and Rapala VMC Online Oy and parent company\u2019s intra-group loan
receivables related to these entities.
The Group does not have contingent liabilities at the year end.
Group\u2019s lease commitments are presented in note 26.
Disputes and litigations
The Group\u2019s management does not have knowledge of any open dis-putes or litigations, which would have a significant impact on the com-pany\u2019s financial position.
25
COMMITMENTS AND CONTINGENCIES
The Group\u2019s senior facilities are secured and has an issued business
mortgage notes with nominal value amounting to 137.8 MEUR. In addi-tion, the Group has pledged subsidiary shares of Marttiini Oy, KL-Teho
Oy and Rapala VMC Online Oy and parent company\u2019s intra-group loan
receivables related to these entities.
The Group does not have contingent liabilities at the year end.
Group\u2019s lease commitments are presented in note 26.
Disputes and litigations
The Group\u2019s management does not have knowledge of any open dis-putes or litigations, which would have a significant impact on the com-pany\u2019s financial position.
25
COMMITMENTS AND CONTINGENCIES
The Group\u2019s senior facilities are secured and has an issued business
mortgage notes with nominal value amounting to 137.8 MEUR. In addi-tion, the Group has pledged subsidiary shares of Marttiini Oy, KL-Teho
Oy and Rapala VMC Online Oy and parent company\u2019s intra-group loan
receivables related to these entities.
The Group does not have contingent liabilities at the year end.
Group\u2019s lease commitments are presented in note 26.
Disputes and litigations
The Group\u2019s management does not have knowledge of any open dis-putes or litigations, which would have a significant impact on the com-pany\u2019s financial position.
25
COMMITMENTS AND CONTINGENCIES
The Group\u2019s senior facilities are secured and has an issued business
mortgage notes with nominal value amounting to 137.8 MEUR. In addi-tion, the Group has pledged subsidiary shares of Marttiini Oy, KL-Teho
Oy and Rapala VMC Online Oy and parent company\u2019s intra-group loan
receivables related to these entities.
The Group does not have contingent liabilities at the year end.
Group\u2019s lease commitments are presented in note 26.
Disputes and litigations
The Group\u2019s management does not have knowledge of any open dis-putes or litigations, which would have a significant impact on the com-pany\u2019s financial position.
25
COMMITMENTS AND CONTINGENCIES
The Group\u2019s senior facilities are secured and has an issued business
mortgage notes with nominal value amounting to 137.8 MEUR. In addi-tion, the Group has pledged subsidiary shares of Marttiini Oy, KL-Teho
Oy and Rapala VMC Online Oy and parent company\u2019s intra-group loan
receivables related to these entities.
The Group does not have contingent liabilities at the year end.
Group\u2019s lease commitments are presented in note 26.
Disputes and litigations
The Group\u2019s management does not have knowledge of any open dis-putes or litigations, which would have a significant impact on the com-pany\u2019s financial position.
26
LEASE CONTRACTS
Accounting principles
Capitalised lease agreements consist mainly of buildings as produc-tion facilities, office premises and warehouses, also the Group has several vehicle lease agreements. The Group recognises a right-of-use (ROU) asset and a lease liability at the commencement of the lease. At the commencement date, a right-of-use asset as defined by IFRS 16 is measured at cost. The Group applies the two available exemptions, which relate to short-term contracts, in which the lease term is less than 12 months, or low-value assets, which are expensed to other operating expenses.
The nominal lease liability is initially measured at the present value of the lease payments over the lease term. The lease payments are discounted using the lessee\u00b4s incremental borrowing rate. The incremental borrowing rates used are relevant interbank rates and the Group\u2019s internal finance margins. The incremental borrowing rates are currency specific.
The initial measurement of the lease payments does not include possible variable elements. Variable lease payments not included in the initial measurement of the lease liability are recognised directly in the statement of income. The lease term is the non-cancellable period of the lease plus period covered by an option to extend or option to terminate if the lessee is reasonably certain to exercise the
extension option. Management judgment based on realistic estimates is used when determining the lease term, especially concerning lease agreements containing termination and purchase options and lease agreements with indefinite lease terms.
Subsequently, the right-of-use assets are measured at initial measurement less accumulated depreciation and impairment losses. The right-of-use assets are depreciated and interest on lease liabilities recognised in the statement of income over the lease term. The lease liabilities are subsequently measured at initial recognition less occurring lease payments that are allocated to the principal.
Lease payments are presented as repayments of liabilities and related interest expenses. The lease payments are presented in the cash flow from financing activities and the interest related to leases are presented in the cash flow from operating activities. Lease payments related to short-term leases, low-value assets and variable payments are presented in the cash flow from operating activities. Modifications to lease agreements may result in adjustments to existing right-of-use assets and lease liabilities. A gain or loss arising from a modification and a termination of a lease agreement is recognised in other operating income or other operating expenses in the statement of income.
RIGHT-OF-USE ASSETS
2025
EUR million | Land and buildings | Other assets | Total |
Acquisition cost Jan 1 | 33.0 | 3.5 | 36.5 |
Additions | 3.1 | 0.7 | 3.8 |
Disposals | -1.6 | -0.4 | -2.0 |
Translation differences | -0.6 | -0.1 | -0.7 |
Acquisition cost Dec 31 | 33.9 | 3.7 | 37.5 |
Accumulated depreciations Jan 1 | -22.5 | -2.3 | -24.8 |
Disposals | 1.6 | 0.4 | 2.0 |
Depreciations during the period | -5.0 | -0.7 | -5.6 |
Translation differences | 0.3 | 0.1 | 0.4 |
Accumulated depreciations Dec 31 | -25.5 | -2.6 | -28.2 |
Carrying value Jan 1 | 10.5 | 1.2 | 11.7 |
Carrying value Dec 31 | 8.3 | 1.0 | 9.4 |
Group\u2019s most material right-of-use assets capitalised consists of build-ings as production facilities, offices and warehouses. Right-of-use asset section Other assets consists mainly of cars.
2024
EUR million | Land and buildings | Other assets | Total |
Acquisition cost Jan 1 | 33.9 | 4.0 | 38.0 |
Additions | 3.7 | 0.8 | 4.5 |
Disposals | -4.7 | -1.3 | -6.1 |
Translation differences | 0.1 | 0.0 | 0.1 |
Acquisition cost Dec 31 | 33.0 | 3.5 | 36.5 |
Accumulated depreciations Jan 1 | -21.7 | -2.8 | -24.5 |
Additions | 0.2 | 0.0 | 0.2 |
Disposals | 3.8 | 1.1 | 4.9 |
Depreciations during the period | -4.8 | -0.7 | -5.5 |
Translation differences | 0.0 | 0.0 | 0.0 |
Accumulated depreciations Dec 31 | -22.5 | -2.3 | -24.8 |
Carrying value Jan 1 | 12.2 | 1.3 | 13.5 |
Carrying value Dec 31 | 10.5 | 1.2 | 11.7 |
Group\u2019s most material right-of-use assets capitalised consists of build-ings as production facilities, offices and warehouses. Right-of-use asset section Other assets consists mainly of cars.
Off-balance sheet lease commitmentsTHE GROUP AS A LESSEE
EUR million | 2025 | 2024 |
Minimum future lease payments on leases | 0.2 | 0.3 |
The non-cancellable lease agreements include short-term and other lease contracts that are not included in lease liabilities. Other rents include IT equipment leases that are not material.
Maturity of the group\u2019s financial liabilities more detailed in the note 21. Lease liabilities more detailed in the note 23.
26
LEASE CONTRACTS
Accounting principles
Capitalised lease agreements consist mainly of buildings as produc-tion facilities, office premises and warehouses, also the Group has several vehicle lease agreements. The Group recognises a right-of-use (ROU) asset and a lease liability at the commencement of the lease. At the commencement date, a right-of-use asset as defined by IFRS 16 is measured at cost. The Group applies the two available exemptions, which relate to short-term contracts, in which the lease term is less than 12 months, or low-value assets, which are expensed to other operating expenses.
The nominal lease liability is initially measured at the present value of the lease payments over the lease term. The lease payments are discounted using the lessee\u00b4s incremental borrowing rate. The incremental borrowing rates used are relevant interbank rates and the Group\u2019s internal finance margins. The incremental borrowing rates are currency specific.
The initial measurement of the lease payments does not include possible variable elements. Variable lease payments not included in the initial measurement of the lease liability are recognised directly in the statement of income. The lease term is the non-cancellable period of the lease plus period covered by an option to extend or option to terminate if the lessee is reasonably certain to exercise the
extension option. Management judgment based on realistic estimates is used when determining the lease term, especially concerning lease agreements containing termination and purchase options and lease agreements with indefinite lease terms.
Subsequently, the right-of-use assets are measured at initial measurement less accumulated depreciation and impairment losses. The right-of-use assets are depreciated and interest on lease liabilities recognised in the statement of income over the lease term. The lease liabilities are subsequently measured at initial recognition less occurring lease payments that are allocated to the principal.
Lease payments are presented as repayments of liabilities and related interest expenses. The lease payments are presented in the cash flow from financing activities and the interest related to leases are presented in the cash flow from operating activities. Lease payments related to short-term leases, low-value assets and variable payments are presented in the cash flow from operating activities. Modifications to lease agreements may result in adjustments to existing right-of-use assets and lease liabilities. A gain or loss arising from a modification and a termination of a lease agreement is recognised in other operating income or other operating expenses in the statement of income.
RIGHT-OF-USE ASSETS
2025
EUR million | Land and buildings | Other assets | Total |
Acquisition cost Jan 1 | 33.0 | 3.5 | 36.5 |
Additions | 3.1 | 0.7 | 3.8 |
Disposals | -1.6 | -0.4 | -2.0 |
Translation differences | -0.6 | -0.1 | -0.7 |
Acquisition cost Dec 31 | 33.9 | 3.7 | 37.5 |
Accumulated depreciations Jan 1 | -22.5 | -2.3 | -24.8 |
Disposals | 1.6 | 0.4 | 2.0 |
Depreciations during the period | -5.0 | -0.7 | -5.6 |
Translation differences | 0.3 | 0.1 | 0.4 |
Accumulated depreciations Dec 31 | -25.5 | -2.6 | -28.2 |
Carrying value Jan 1 | 10.5 | 1.2 | 11.7 |
Carrying value Dec 31 | 8.3 | 1.0 | 9.4 |
Group\u2019s most material right-of-use assets capitalised consists of build-ings as production facilities, offices and warehouses. Right-of-use asset section Other assets consists mainly of cars.
2024
EUR million | Land and buildings | Other assets | Total |
Acquisition cost Jan 1 | 33.9 | 4.0 | 38.0 |
Additions | 3.7 | 0.8 | 4.5 |
Disposals | -4.7 | -1.3 | -6.1 |
Translation differences | 0.1 | 0.0 | 0.1 |
Acquisition cost Dec 31 | 33.0 | 3.5 | 36.5 |
Accumulated depreciations Jan 1 | -21.7 | -2.8 | -24.5 |
Additions | 0.2 | 0.0 | 0.2 |
Disposals | 3.8 | 1.1 | 4.9 |
Depreciations during the period | -4.8 | -0.7 | -5.5 |
Translation differences | 0.0 | 0.0 | 0.0 |
Accumulated depreciations Dec 31 | -22.5 | -2.3 | -24.8 |
Carrying value Jan 1 | 12.2 | 1.3 | 13.5 |
Carrying value Dec 31 | 10.5 | 1.2 | 11.7 |
Group\u2019s most material right-of-use assets capitalised consists of build-ings as production facilities, offices and warehouses. Right-of-use asset section Other assets consists mainly of cars.
Off-balance sheet lease commitmentsTHE GROUP AS A LESSEE
EUR million | 2025 | 2024 |
Minimum future lease payments on leases | 0.2 | 0.3 |
The non-cancellable lease agreements include short-term and other lease contracts that are not included in lease liabilities. Other rents include IT equipment leases that are not material.
Maturity of the group\u2019s financial liabilities more detailed in the note 21. Lease liabilities more detailed in the note 23.
27
RELATED PARTY TRANSACTIONS
The Group\u2019s related parties include the members of the Board, CEO, members of the Executive Committee, family members of these individ-uals, entities controlled by these individuals, Rapala VMC Corporation\u00b4s subsidiaries, associated companies and joint ventures and entities with significant influence over the Group. Subsidiaries owned directly or indirectly by the parent company as well as associates and foreign branches are listed in note 31. Related party transactions between Group companies have been eliminated. Entities with significant influ-ence are specified in section \u2018Shares and Shareholders\u2019.
TRANSACTIONS AND BALANCES WITH RELATED PARTIES
EUR million | Sales and other income | Purchases | Paid rents | Other expenses | Receivables |
2025 | |||||
Associated company Lanimo O\u00fc | 0.0 | 0.0 | |||
Entity with significant influence over the Group1) | -0.3 | 0.0 | |||
Management | 0.0 | ||||
2024 | |||||
Associated company Lanimo O\u00fc | 0.0 | 0.0 | 0.0 | ||
Entity with significant influence over the Group1) | 0.0 | 0.0 | |||
Management | 0.0 | -0.1 | 0.0 | 0.7 |
1)Lease agreement for the real estate for the consolidated operations in France and a service fee. Entity with significant influence is Viellard Migeon & Cie, who\u2019s shareholding and voting rights alone and together with its subsidiary is presented in section \u2019Shares and Shareholders\u2019.
EMPLOYEE BENEFITS FOR TOP MANAGEMENT
EUR million | 2025 | 2024 |
Salaries and other employee benefits | -2.7 | -3.1 |
Post-employment benefits | -0.5 | -0.7 |
Benefits related to termination of employment | -0.7 | |
Share-based incentive plan to be settled in cash | -0.2 | |
Share-based incentive plan | 0.0 | |
Total | -3.2 | -4.7 |
Top management consists of members of the Board of Directors, CEO and other members of the Executive Committee.
On December 31, 2025, the members of the Board and the Executive Committee held (shares and share-based rights of each member and corporations over which he/she exercises control in the company and its group companies) a total of 194 451 Rapala VMC Corporation shares (on December 31, 2024: 85 795). Top management owned 0.5% (0.2%) of the issued share capital and voting rights of the company. Details of top management shareholdings are given in the section \u2018Board and Management\u2019.
Details on share-based incentive plan are given in the note \u2018Shared-based payments\u2019.
EMPLOYEE BENEFITS FOR CHIEF EXECUTIVE OFFICER
EUR million | 2025 | 2024 |
Lars Ollberg, CEO from May 1, 2023 to March 6, 2025 | ||
Salaries and other employee benefits | -0.2 | -0.5 |
Post-employment benefits | 0.0 | -0.1 |
Cyrille Viellard, CEO from March 7, 2025 onwards | ||
Salaries and other employee benefits | -0.4 | |
Post-employment benefits | -0.1 | |
Share-based incentive plan | 0.0 | |
Total | -0.7 | -0.5 |
CEO Cyrille Viellard\u2019s annual base salary and benefits from March 7th 2025 onwards amounted to EUR 259 thousand. Viellard is entitled to a short-term incentive according to the principles of the Group\u2019s senior management short-term incentive scheme. Accrued bonus in 2025 totaled EUR 127 thousand. CEO\u2019s pension is arranged under the Finn-ish statutory contribution based employee pension plan. In addition, the CEO is entitled to a EUR 10 thousand annual contribution to the French retirement fund.
Lars Ollberg acted as the CEO until March 6th 2025 and remained employed by Rapala VMC until June 30th 2025. Annual base salary and benefits amounted to EUR 200 thousand (EUR 334 thousand from January 1st to December 31st 2024). Ollberg is entitled to a short-term incentive according to the principles of the Group\u2019s senior management short-term incentive scheme. Accrued bonus in 2025 totaled EUR 32 thousand. CEO\u2019s pension is arranged under the statutory contribution based employee pension plan.
EMPLOYEE BENEFITS FOR OTHER MEMBERS OF THE EXECUTIVE COMMITTEE
EUR million | 2025 | 2024 |
Salaries and other employee benefits | -1.9 | -2.7 |
Post-employment benefits | -0.4 | -0.6 |
Benefits related to termination of employment | -0.7 | |
Share-based incentive plan to be settled in cash | -0.2 | |
Share-based incentive plan | 0.0 | |
Total | -2.2 | -4.2 |
In addition to the monthly salary, other members of the Executive Com-mittee participate in the Group\u2019s senior management bonus scheme. The amount and payment of the bonus is based on the financial and strategic targets set by the Board. If the targets are not achieved, pay-ment of bonus is fully at the discretion of the Board of Directors.
EMPLOYEE BENEFITS FOR BOARD OF DIRECTORS
EUR million | 2025 | 2024 |
Salaries and other employee benefits | ||
Chairman of the Board | -0.1 | -0.1 |
Other Board members | -0.2 | -0.2 |
Total | -0.2 | -0.3 |
In 2025, the annual fee to the Chairman of the Board was EUR 70 thou-sand and the fee to other Board members was EUR 25 thousand. In addition, a meeting fee of EUR 1000 was paid per Board and Committee meeting. Members of the Board are reimbursed for travel expenses corresponding to the corporation\u2019s traveling compensation principles.
27
RELATED PARTY TRANSACTIONS
The Group\u2019s related parties include the members of the Board, CEO, members of the Executive Committee, family members of these individ-uals, entities controlled by these individuals, Rapala VMC Corporation\u00b4s subsidiaries, associated companies and joint ventures and entities with significant influence over the Group. Subsidiaries owned directly or indirectly by the parent company as well as associates and foreign branches are listed in note 31. Related party transactions between Group companies have been eliminated. Entities with significant influ-ence are specified in section \u2018Shares and Shareholders\u2019.
TRANSACTIONS AND BALANCES WITH RELATED PARTIES
EUR million | Sales and other income | Purchases | Paid rents | Other expenses | Receivables |
2025 | |||||
Associated company Lanimo O\u00fc | 0.0 | 0.0 | |||
Entity with significant influence over the Group1) | -0.3 | 0.0 | |||
Management | 0.0 | ||||
2024 | |||||
Associated company Lanimo O\u00fc | 0.0 | 0.0 | 0.0 | ||
Entity with significant influence over the Group1) | 0.0 | 0.0 | |||
Management | 0.0 | -0.1 | 0.0 | 0.7 |
1)Lease agreement for the real estate for the consolidated operations in France and a service fee. Entity with significant influence is Viellard Migeon & Cie, who\u2019s shareholding and voting rights alone and together with its subsidiary is presented in section \u2019Shares and Shareholders\u2019.
EMPLOYEE BENEFITS FOR TOP MANAGEMENT
EUR million | 2025 | 2024 |
Salaries and other employee benefits | -2.7 | -3.1 |
Post-employment benefits | -0.5 | -0.7 |
Benefits related to termination of employment | -0.7 | |
Share-based incentive plan to be settled in cash | -0.2 | |
Share-based incentive plan | 0.0 | |
Total | -3.2 | -4.7 |
Top management consists of members of the Board of Directors, CEO and other members of the Executive Committee.
On December 31, 2025, the members of the Board and the Executive Committee held (shares and share-based rights of each member and corporations over which he/she exercises control in the company and its group companies) a total of 194 451 Rapala VMC Corporation shares (on December 31, 2024: 85 795). Top management owned 0.5% (0.2%) of the issued share capital and voting rights of the company. Details of top management shareholdings are given in the section \u2018Board and Management\u2019.
Details on share-based incentive plan are given in the note \u2018Shared-based payments\u2019.
EMPLOYEE BENEFITS FOR CHIEF EXECUTIVE OFFICER
EUR million | 2025 | 2024 |
Lars Ollberg, CEO from May 1, 2023 to March 6, 2025 | ||
Salaries and other employee benefits | -0.2 | -0.5 |
Post-employment benefits | 0.0 | -0.1 |
Cyrille Viellard, CEO from March 7, 2025 onwards | ||
Salaries and other employee benefits | -0.4 | |
Post-employment benefits | -0.1 | |
Share-based incentive plan | 0.0 | |
Total | -0.7 | -0.5 |
CEO Cyrille Viellard\u2019s annual base salary and benefits from March 7th 2025 onwards amounted to EUR 259 thousand. Viellard is entitled to a short-term incentive according to the principles of the Group\u2019s senior management short-term incentive scheme. Accrued bonus in 2025 totaled EUR 127 thousand. CEO\u2019s pension is arranged under the Finn-ish statutory contribution based employee pension plan. In addition, the CEO is entitled to a EUR 10 thousand annual contribution to the French retirement fund.
Lars Ollberg acted as the CEO until March 6th 2025 and remained employed by Rapala VMC until June 30th 2025. Annual base salary and benefits amounted to EUR 200 thousand (EUR 334 thousand from January 1st to December 31st 2024). Ollberg is entitled to a short-term incentive according to the principles of the Group\u2019s senior management short-term incentive scheme. Accrued bonus in 2025 totaled EUR 32 thousand. CEO\u2019s pension is arranged under the statutory contribution based employee pension plan.
EMPLOYEE BENEFITS FOR OTHER MEMBERS OF THE EXECUTIVE COMMITTEE
EUR million | 2025 | 2024 |
Salaries and other employee benefits | -1.9 | -2.7 |
Post-employment benefits | -0.4 | -0.6 |
Benefits related to termination of employment | -0.7 | |
Share-based incentive plan to be settled in cash | -0.2 | |
Share-based incentive plan | 0.0 | |
Total | -2.2 | -4.2 |
In addition to the monthly salary, other members of the Executive Com-mittee participate in the Group\u2019s senior management bonus scheme. The amount and payment of the bonus is based on the financial and strategic targets set by the Board. If the targets are not achieved, pay-ment of bonus is fully at the discretion of the Board of Directors.
EMPLOYEE BENEFITS FOR BOARD OF DIRECTORS
EUR million | 2025 | 2024 |
Salaries and other employee benefits | ||
Chairman of the Board | -0.1 | -0.1 |
Other Board members | -0.2 | -0.2 |
Total | -0.2 | -0.3 |
In 2025, the annual fee to the Chairman of the Board was EUR 70 thou-sand and the fee to other Board members was EUR 25 thousand. In addition, a meeting fee of EUR 1000 was paid per Board and Committee meeting. Members of the Board are reimbursed for travel expenses corresponding to the corporation\u2019s traveling compensation principles.
28
SHARE-BASED PAYMENTS
The Board of Directors of Rapala VMC Corporation resolved on July 23rd 2025 to establish a new share-based incentive plan for key employees of the group. The purpose of the plan is to align the interests of the company\u2019s shareholders and key employees to increase the company\u2019s value in the long-term, to commit key employees to implement the com-pany\u2019s strategy, objectives and long-term interests and to offer them a competitive incentive plan based on earning and accumulating the company\u2019s shares.
The Performance Share Plan 2025\u20132029 consists of three perfor-mance periods, covering the financial years 2025\u20132027, 2026\u20132028 and 2027\u20132029 respectively. The Board of Directors will resolve an-nually on the commencement and details of a performance period. In the plan, the target group has an opportunity to earn Rapala VMC\u2019s shares based on performance. The participants are able to increase their personal earning opportunity by investing in Rapala VMC\u2019s shares. The potential reward will be paid partly in Rapala VMC shares and partly in cash. The cash proportion of the reward is intended to cover taxes and statutory social security contributions arising from the reward to the key employee.
The Management Team member must hold 50 per cent of the re-ceived shares, until the value of the Management Team member\u2019s total shareholding in Rapala VMC equals to 50 per cent of their annual base salary for the calendar year preceding the payment of the reward. Re-spectively, the CEO must hold 50 per cent of the received shares, until the value of the CEO\u2019s total shareholding in Rapala VMC equals to 100 per cent of the CEO\u2019s annual base salary for the preceding calendar year. Such number of Rapala VMC shares must be held as long as the mem-bership in the Management Team or the position as the CEO continues.
The Board resolved on March 11th 2026 on the performance pe-riod 2026\u20132028. the plan\u2019s target group consists of approximately 65 key employees, including the members of the Management Team and the CEO. The performance criteria of the second performance period 2026\u20132028 are tied to Leverage, Comparable EBIT and Total Share-holder Return. The value of the rewards to be paid on the basis of the period 2026\u20132028 corresponds to a maximum total of 552,000 shares of Rapala VMC, including also the proportion to be paid in cash.
Accounting principles
Share-based payment programs are valued at fair value on the grant date and recognized as an expense under employee ben-efit expenses in the income statement during the vesting pe-riod with a corresponding adjustment to the equity or liability.
The expense of the share-based payments determined at the grant date reflects the Group\u2019s estimate of the number of share rewards that will ultimately vest. Grant date is the date at which the entity and another party agree to a share-based payment arrangement, being when the entity and the counterparty have a shared understanding of the terms and conditions of the arrangement. On a regular basis the Group reviews the assumptions made and revises its estimates of the share-based payments that are expected to be settled. The changes in the estimates are recognized in the income state-ment with a corresponding adjustment to the equity or liability.
Plan | LTI 2025\u20132027 |
Grant date | July 28th 2025 |
Performance period | Jan 1st 2025 \u2013 Dec 31st 2027 |
Maximum number of shares1) | 544 000 |
Number of shares outstanding1) | 544 000 |
Share price at grant | 1.345 \u20ac |
Vesting year | 2028 |
Performance criteria | Leverage 40%, Comparable EBIT 40%, Total Shareholder Return 20% |
Continued employment | |
Target group | Approximately 60 key employees, including the members of the Management Team and the CEO. |
PERFORMANCE BASED LONG-TERM INCENTIVE PLANS AS OF DECEMBER 31, 2025
28
SHARE-BASED PAYMENTS
The Board of Directors of Rapala VMC Corporation resolved on July 23rd 2025 to establish a new share-based incentive plan for key employees of the group. The purpose of the plan is to align the interests of the company\u2019s shareholders and key employees to increase the company\u2019s value in the long-term, to commit key employees to implement the com-pany\u2019s strategy, objectives and long-term interests and to offer them a competitive incentive plan based on earning and accumulating the company\u2019s shares.
The Performance Share Plan 2025\u20132029 consists of three perfor-mance periods, covering the financial years 2025\u20132027, 2026\u20132028 and 2027\u20132029 respectively. The Board of Directors will resolve an-nually on the commencement and details of a performance period. In the plan, the target group has an opportunity to earn Rapala VMC\u2019s shares based on performance. The participants are able to increase their personal earning opportunity by investing in Rapala VMC\u2019s shares. The potential reward will be paid partly in Rapala VMC shares and partly in cash. The cash proportion of the reward is intended to cover taxes and statutory social security contributions arising from the reward to the key employee.
The Management Team member must hold 50 per cent of the re-ceived shares, until the value of the Management Team member\u2019s total shareholding in Rapala VMC equals to 50 per cent of their annual base salary for the calendar year preceding the payment of the reward. Re-spectively, the CEO must hold 50 per cent of the received shares, until the value of the CEO\u2019s total shareholding in Rapala VMC equals to 100 per cent of the CEO\u2019s annual base salary for the preceding calendar year. Such number of Rapala VMC shares must be held as long as the mem-bership in the Management Team or the position as the CEO continues.
The Board resolved on March 11th 2026 on the performance pe-riod 2026\u20132028. the plan\u2019s target group consists of approximately 65 key employees, including the members of the Management Team and the CEO. The performance criteria of the second performance period 2026\u20132028 are tied to Leverage, Comparable EBIT and Total Share-holder Return. The value of the rewards to be paid on the basis of the period 2026\u20132028 corresponds to a maximum total of 552,000 shares of Rapala VMC, including also the proportion to be paid in cash.
Accounting principles
Share-based payment programs are valued at fair value on the grant date and recognized as an expense under employee ben-efit expenses in the income statement during the vesting pe-riod with a corresponding adjustment to the equity or liability.
The expense of the share-based payments determined at the grant date reflects the Group\u2019s estimate of the number of share rewards that will ultimately vest. Grant date is the date at which the entity and another party agree to a share-based payment arrangement, being when the entity and the counterparty have a shared understanding of the terms and conditions of the arrangement. On a regular basis the Group reviews the assumptions made and revises its estimates of the share-based payments that are expected to be settled. The changes in the estimates are recognized in the income state-ment with a corresponding adjustment to the equity or liability.
Plan | LTI 2025\u20132027 |
Grant date | July 28th 2025 |
Performance period | Jan 1st 2025 \u2013 Dec 31st 2027 |
Maximum number of shares1) | 544 000 |
Number of shares outstanding1) | 544 000 |
Share price at grant | 1.345 \u20ac |
Vesting year | 2028 |
Performance criteria | Leverage 40%, Comparable EBIT 40%, Total Shareholder Return 20% |
Continued employment | |
Target group | Approximately 60 key employees, including the members of the Management Team and the CEO. |
PERFORMANCE BASED LONG-TERM INCENTIVE PLANS AS OF DECEMBER 31, 2025
29
EARNINGS PER SHARE
Accounting principles
Earnings per share figure is calculated by dividing the net profit for the period attributable to the equity holders of the parent company, adjusted for issuance fees, interest and repurchase premiums on hybrid loans, by the weighted average number of shares out-standing during the period. Diluted earnings per share figure is calculated by taking into account the effects of potential obliga-tions to issue shares.
EUR million | 2025 | 2024 |
Earnings per share | ||
Net profit for the period attributable to the equity holders of the parent company, EUR million | -4.9 | 0.4 |
Accrued interest on the hybrid bond and tender premium | ||
-5.1 | -3.8 | |
Tax effect | 1.0 | 0.8 |
Net effect | -4.1 | -3.0 |
Total | -9.0 | -2.7 |
Weighted average number of shares, 1000 shares | 38 550 | 38 876 |
Earnings per share, EUR | -0.23 | -0.07 |
Earnings per share, diluted | ||
Diluted weighted average number of shares, 1000 shares | 38 550 | 38 876 |
Diluted earnings per share, EUR | -0.23 | -0.07 |
*The maximum amount of shares issued through the share-based payments program is 544 000 shares (2024: 0). The dilution impact is anyhow limited to average number of treasury shares held by the Group during the year.
29
EARNINGS PER SHARE
Accounting principles
Earnings per share figure is calculated by dividing the net profit for the period attributable to the equity holders of the parent company, adjusted for issuance fees, interest and repurchase premiums on hybrid loans, by the weighted average number of shares out-standing during the period. Diluted earnings per share figure is calculated by taking into account the effects of potential obliga-tions to issue shares.
EUR million | 2025 | 2024 |
Earnings per share | ||
Net profit for the period attributable to the equity holders of the parent company, EUR million | -4.9 | 0.4 |
Accrued interest on the hybrid bond and tender premium | ||
-5.1 | -3.8 | |
Tax effect | 1.0 | 0.8 |
Net effect | -4.1 | -3.0 |
Total | -9.0 | -2.7 |
Weighted average number of shares, 1000 shares | 38 550 | 38 876 |
Earnings per share, EUR | -0.23 | -0.07 |
Earnings per share, diluted | ||
Diluted weighted average number of shares, 1000 shares | 38 550 | 38 876 |
Diluted earnings per share, EUR | -0.23 | -0.07 |
*The maximum amount of shares issued through the share-based payments program is 544 000 shares (2024: 0). The dilution impact is anyhow limited to average number of treasury shares held by the Group during the year.
30
EVENTS AFTER THE BALANCE SHEET DATE
The Group has no knowledge of any significant events after the bal-ance sheet date that would have a material impact on the financial statements for 2025.
31
GROUP COMPANIES
Subsidiaries by geographical area | Country | Group holding (%) | Nature of activity | |
Nordic | ||||
Rapala VMC Denmark A/S | * | Denmark | 100 | Distribution |
KL-Teho Oy | * | Finland | 100 | Manufacturing |
Marttiini Oy | * | Finland | 100 | Manufacturing |
Rapala VMC Online Oy | * | Finland | 100 | Distribution |
Rapala VMC North Europe Oy | Finland | 100 | Distribution | |
Peltonen Ski Oy | Finland | 100 | Manufacturing | |
Rapala VMC East Europe Oy | Finland | 100 | Administration | |
Rapala VMC Norway AS | * | Norway | 100 | Distribution |
Remen Slukfabrikk AS | Norway | 100 | Administration | |
Vangen AS | Norway | 100 | Administration | |
Rapala VMC Sweden Ab | * | Sweden | 100 | Distribution |
Subsidiaries by geographical area | Country | Group holding (%) | Nature of activity | |
Rest of Europe | ||||
FLLC Normark | Belarus | 100 | Distribution | |
Rapala VMC Adriatic D.o.o. | Croatia | 100 | Distribution | |
Rapala VMC DOO | Serbia | 100 | Distribution | |
Rapala VMC Czech S.r.o. | Czech Republic | 100 | Distribution | |
Normark Eesti O\u00fc | Estonia | 100 | Distribution | |
Rapala Eesti AS | * | Estonia | 100 | Manufacturing |
Rapala VMC France SAS | * | France | 100 | Distribution |
VMC P\u00e9che SA | * | France | 100 | Manufacturing |
Rapala VMC Germany Gmbh | Germany | 100 | Distribution | |
Rapala VMC Hungary Zrt | * | Hungary | 100 | Distribution |
Rapala VMC Italia Srl | Italy | 100 | Distribution | |
Normark Kazakhstan LLP | Kazakhstan | 100 | Distribution | |
Rapala VMC Baltics UAB | Lithuania | 100 | Distribution | |
Rapala B.V. | * | Netherlands | 100 | Administration |
Rapala VMC Poland Sp.z.o.o. | * | Poland | 100 | Distribution |
Rapala VMC Portugal, Unipessoal, LTD | Portugal | 100 | Distribution | |
Rapala VMC Romania S.R.L. | Romania | 100 | Distribution | |
JSC Normark | Russia | 100 | Distribution | |
Normark LLC | Russia | 100 | Administration | |
Rapala VMC Spain SAU | * | Spain | 100 | Distribution |
Rapala VMC Switzerland AG | * | Switzerland | 100 | Distribution |
Normark UK Sport Ltd. | UK | 100 | Administration | |
Rapala VMC UK Ltd. | * | UK | 100 | Distribution/Manufacturing |
Normark Fishing Ltd. | UK | 100 | Administration | |
Dynamite Baits Ltd. | UK | 100 | Administration | |
Subsidiaries by geographical area | Country | Group holding (%) | Nature of activity | |
North America | ||||
Rapala VMC Canada Inc. | Canada | 100 | Distribution | |
NC Holdings Inc. | * | USA | 100 | Administration |
Normark Corporation | USA | 100 | Distribution | |
Normark Innovations, Inc. | USA | 100 | Sourcing | |
VMC Inc. | USA | 100 | Distribution |
GROUP COMPANIES
Subsidiaries by geographical area | Country | Group holding (%) | Nature of activity | |
Rest of the World | ||||
Rapala VMC Australia Pty Ltd | * | Australia | 100 | Distribution |
Rapala V.M.C. Do Brazil | * | Brazil | 100 | Distribution |
Rapala VMC Chile Ltd | Chile | 100 | Distribution | |
Rapala VMC China Co. | * | China | 100 | Distribution |
Rapala VMC (ShenZhen) Ltd | China | 100 | Sourcing | |
Willtech (PRC) Ltd. | Hong Kong | 100 | Sourcing | |
PT Rapala Indonesia | * | Indonesia | 100 | Distribution |
PT Rapala VMC Batam | Indonesia | 100 | Administration | |
PT VMC Fishing Tackle Indonesia | Indonesia | 100 | Manufacturing | |
Rapala Japan Ltd. | * | Japan | 100 | Distribution |
Rapala VMC (Asia Pacific) Sdn Bhd. | * | Malaysia | 100 | Distribution |
Rapala VMC Mexico S. de R.L. de C.V | Mexico | 100 | Distribution | |
Rapala VMC Africa (Pty) Ltd. | South Africa | 100 | Distribution | |
Rapala VMC Holdings (Pty) Ltd. | * | South Africa | 100 | Administration |
Rapala VMC Korea Co., Ltd | * | South Korea | 100 | Distribution |
Rapala VMC (Thailand) Co., Ltd. | * | Thailand | 100 | Distribution |
31
GROUP COMPANIES
Subsidiaries by geographical area | Country | Group holding (%) | Nature of activity | |
Nordic | ||||
Rapala VMC Denmark A/S | * | Denmark | 100 | Distribution |
KL-Teho Oy | * | Finland | 100 | Manufacturing |
Marttiini Oy | * | Finland | 100 | Manufacturing |
Rapala VMC Online Oy | * | Finland | 100 | Distribution |
Rapala VMC North Europe Oy | Finland | 100 | Distribution | |
Peltonen Ski Oy | Finland | 100 | Manufacturing | |
Rapala VMC East Europe Oy | Finland | 100 | Administration | |
Rapala VMC Norway AS | * | Norway | 100 | Distribution |
Remen Slukfabrikk AS | Norway | 100 | Administration | |
Vangen AS | Norway | 100 | Administration | |
Rapala VMC Sweden Ab | * | Sweden | 100 | Distribution |
Subsidiaries by geographical area | Country | Group holding (%) | Nature of activity | |
Rest of Europe | ||||
FLLC Normark | Belarus | 100 | Distribution | |
Rapala VMC Adriatic D.o.o. | Croatia | 100 | Distribution | |
Rapala VMC DOO | Serbia | 100 | Distribution | |
Rapala VMC Czech S.r.o. | Czech Republic | 100 | Distribution | |
Normark Eesti O\u00fc | Estonia | 100 | Distribution | |
Rapala Eesti AS | * | Estonia | 100 | Manufacturing |
Rapala VMC France SAS | * | France | 100 | Distribution |
VMC P\u00e9che SA | * | France | 100 | Manufacturing |
Rapala VMC Germany Gmbh | Germany | 100 | Distribution | |
Rapala VMC Hungary Zrt | * | Hungary | 100 | Distribution |
Rapala VMC Italia Srl | Italy | 100 | Distribution | |
Normark Kazakhstan LLP | Kazakhstan | 100 | Distribution | |
Rapala VMC Baltics UAB | Lithuania | 100 | Distribution | |
Rapala B.V. | * | Netherlands | 100 | Administration |
Rapala VMC Poland Sp.z.o.o. | * | Poland | 100 | Distribution |
Rapala VMC Portugal, Unipessoal, LTD | Portugal | 100 | Distribution | |
Rapala VMC Romania S.R.L. | Romania | 100 | Distribution | |
JSC Normark | Russia | 100 | Distribution | |
Normark LLC | Russia | 100 | Administration | |
Rapala VMC Spain SAU | * | Spain | 100 | Distribution |
Rapala VMC Switzerland AG | * | Switzerland | 100 | Distribution |
Normark UK Sport Ltd. | UK | 100 | Administration | |
Rapala VMC UK Ltd. | * | UK | 100 | Distribution/Manufacturing |
Normark Fishing Ltd. | UK | 100 | Administration | |
Dynamite Baits Ltd. | UK | 100 | Administration | |
Subsidiaries by geographical area | Country | Group holding (%) | Nature of activity | |
North America | ||||
Rapala VMC Canada Inc. | Canada | 100 | Distribution | |
NC Holdings Inc. | * | USA | 100 | Administration |
Normark Corporation | USA | 100 | Distribution | |
Normark Innovations, Inc. | USA | 100 | Sourcing | |
VMC Inc. | USA | 100 | Distribution |
GROUP COMPANIES
Subsidiaries by geographical area | Country | Group holding (%) | Nature of activity | |
Rest of the World | ||||
Rapala VMC Australia Pty Ltd | * | Australia | 100 | Distribution |
Rapala V.M.C. Do Brazil | * | Brazil | 100 | Distribution |
Rapala VMC Chile Ltd | Chile | 100 | Distribution | |
Rapala VMC China Co. | * | China | 100 | Distribution |
Rapala VMC (ShenZhen) Ltd | China | 100 | Sourcing | |
Willtech (PRC) Ltd. | Hong Kong | 100 | Sourcing | |
PT Rapala Indonesia | * | Indonesia | 100 | Distribution |
PT Rapala VMC Batam | Indonesia | 100 | Administration | |
PT VMC Fishing Tackle Indonesia | Indonesia | 100 | Manufacturing | |
Rapala Japan Ltd. | * | Japan | 100 | Distribution |
Rapala VMC (Asia Pacific) Sdn Bhd. | * | Malaysia | 100 | Distribution |
Rapala VMC Mexico S. de R.L. de C.V | Mexico | 100 | Distribution | |
Rapala VMC Africa (Pty) Ltd. | South Africa | 100 | Distribution | |
Rapala VMC Holdings (Pty) Ltd. | * | South Africa | 100 | Administration |
Rapala VMC Korea Co., Ltd | * | South Korea | 100 | Distribution |
Rapala VMC (Thailand) Co., Ltd. | * | Thailand | 100 | Distribution |