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Leatt Corporation Financial Results for 2024

Leatt Corporation has recently revealed its financial performance for the fourth quarter and the complete year of 2024. Recognized as a leader in developing head-to-toe protective equipment specifically for motorcycle and mountain biking enthusiasts, the company's financial data paints a picture of resilience despite broader market challenges.

Fourth Quarter Highlights

In the fourth quarter of 2024, Leatt reported revenues of $11.20 million, marking a 14% increase compared to the same period last year. This positive trend is a significant turnaround as the company recorded a net loss of $(446,459), a notable 69% improvement from the previous year. CEO Sean Macdonald expressed optimism regarding this return to double-digit revenue growth, attributing it to effective international sales, strategic restocking activities, and newly formed distribution partnerships.

The fourth-quarter growth was driven primarily by an increase in demand for body armor, helmets, and other protective accessories. Noteworthy figures from the fourth quarter include:

• - Body armor revenues increased by 14%.
• - Helmet sales saw an impressive rise of 41%.
• - Sales of various parts and accessories climbed by 9%.

However, the established neck brace sales declined by 25%, which the company attributes to inventory adjustments at distributor levels. Still, there is optimism surrounding the Adventure (ADV) gear category, which surpassed expectations, with plans for further innovation in this segment.

Full Year Performance

For the full year of 2024, total revenues reached $44.03 million, reflecting a 7% decrease from 2023. Cash and cash equivalents rose by 9%, reaching $12.37 million, demonstrating the company’s solid liquidity position. Furthermore, operational cash flow amounted to $2.80 million, showcasing a healthy cash management strategy. Despite a decrease in global revenue driven by challenges in various categories, direct consumer sales experienced growth of 15%, indicating sustained brand strength in the market.

Commentary from Leadership

Macdonald noted, “The growth in gross profit as a percentage of sales reflects improving domestic trading conditions and a stabilization of inventory levels.” He emphasized the importance of resilient service commitments, stating, “We continue to invest in innovative product development and brand growth, which we believe will be crucial for long-term success.”

Dr. Christopher Leatt, the company’s founder and R&D head, added that the company’s strong pipeline of innovative protective equipment is pivotal for future growth, especially as they received two prestigious 2025 Design and Innovation Awards.

Future Outlook

Looking towards the future, Leatt is optimistic despite encountering geo-political and economic hurdles that could affect demand. With improved ordering patterns and a commitment to maintaining robust liquidity, the company remains vigilant in navigating this landscape. Macdonald concluded, “We are enthusiastic about our capabilities and direction, believing firmly that our strategic investments in talent, innovative product lines, and diverse distribution channels will lead to sustained growth and enhance shareholder value.”

The company will host a conference call to discuss these results and future expectations in more detail. Interested parties can tune in for insights into the company’s strategic direction.

Conclusion

Leatt Corporation continues to evolve and adapt within a competitive environment, displaying potential for future growth despite recent challenges. Their focus on protective gear innovation and strong sales strategies positions them favorably as they move forward in 2025. Individuals seeking quality protective equipment for extreme and high-velocity sports can look forward to new offerings from this dynamic company in the upcoming period.