Successful 2022 despite withdrawal from Russia, Reima becomes a climate frontrunner in Finland

Reima Group had a strong financial year 2022 despite the uncertain market conditions. The Group’s revenue increased by 4% to 153.8 MEUR (2021: 147.4 MEUR). The strongest growth was seen in North America, where revenue increased by 34% in 2022. Reima’s collections were more sustainable than ever, and Reima was the first Finnish clothing brand to have their carbon emissions reductions approved by Science Based Targets initiative (SBTi).

Reima’s global expansion continued in 2022. Developing digital operations in the most important markets was a key focus area, and Reima opened ecommerce store in the Rakuten marketplace in Japan. Revenue from wholesale channels increased due to an increase in pre-orders. Direct-to-consumer sales decreased as Reima closed its own stores and e-commerce store in Russia.

In the spring of 2022, Reima suspended its operations in Russia and Ukraine due to Russia’s invasion of Ukraine. Reima’s own retail stores and e-commerce store in Russia were permanently closed in March. Deliveries to Ukraine were restarted before summer. The subsidiary in Russia was put for sale and the divestment of the unit to a local owner was completed in February 2023, marking the completion of Reima’s withdrawal from the market.

The Reima Group’s adjusted EBITDA was 38.1 MEUR (2021: 20.5 MEUR). The continuing business in Europe, North America and Asia performed well. In addition, foreign exchange rate hedges had a positive impact on the earnings.

Reima’s climate targets approved by Science Based Targets initiative, collections more sustainable than ever

Reima took a crucial step in climate action, as Science Based Targets initiative (SBTi) approved our emissions reduction targets.

“The fact is that we need to consume less to secure a sustainable future. Choosing high-quality products enables a long use time. This is particularly crucial in kidswear, which is in intense use daily. We’ve been on a mission to produce top quality products since Reima’s beginning 80 years ago when we were transforming leftover gear into outerwear. Sustainability lies in the heart of our business”, says Elina Björklund, CEO of Reima.

According to SBTi, our emissions reduction goal is in line with limiting global warming to 1.5 degrees Celsius or less, meaning we are aligned with the Paris Climate Agreement. Reima has committed to reducing our per product emissions by 51.6%, and own operations emissions by 90% by 2030 from a 2021 base year. In 2022, our Scope 1 and 2 emissions decreased by 38%, and Scope 3 emissions by 9%, compared to 2021.

Most of the emission reduction efforts depend on the products and materials we use to make them. In 2022, already 80% of Reima’s clothing and accessory styles were made with more sustainable materials, and in 2023, the figure is an impressive 90%. Using recycled fibers, such as recycled polyester, helps keep the materials in use, as well as decreases the products’ – and our overall – carbon footprint.

Our other sustainability achievements included: a special Reima x WWF collection for nature, which resulted in a 100,000 Euro donation to WWF; launching a repair service, and; donations to support children in Ukraine as well as refugees.

You can read more about Reima’s sustainability work and 2022 events in our Corporate Responsibility Report published today on Reima’s Company Website.

Reima is a globally leading brand in kids’ activewear, known for award-winning innovations and high-quality products. Reima provides a year-round, tip-to-toe wardrobe for active children from 0 to 12 years of age. In addition to apparel, Reima offers a wide range of footwear, accessories and solutions for kids and their parents. Reima’s revenue was €155 million in 2022 and the company employs around 350 people in seven countries.

The figures presented in this press release are in accordance with Reima Group’s IFRS Financial Statements for the financial year 1/1 – 31/12/2022. The Group’s parent company is Reima Group Holding Oy, which owns Reima Group Oy and its subsidiary Reima Europe Oy.