Spin Master has seen a strong growth in its activities, games and puzzles business segment in Q3 2018 financials that have shown resilience in an industry beset by the collapse of Toys R Us.
The Canadian firm has seen revenue increase 2.3 per cent to $620 million from $606.1 million in the same period of 2017.
While gross product sales decreased by 0.4 per cent with declines in its Air Hogs, Zoomer and PAW Patrol brands, these were offset by sales of Gund and increases in Cool Maker, Kinetic Sand and the games portfolio including Cardinal.
Where gross product sales decreased 1.5 per cent in North America, they grew 17.4 per cent in the rest of the world.
“In a quarter where sales were affected by the uncertainty arising from the demise of Toys R US, we are pleased with out operating and financial results for Q3 2018. We saw particularly strong growth in our Activities, Games and Puzzles business segment, further bolstered by our newest acquisition, Gund,” said Ronnen Harary, chairman and co-chief executive officer of Spin Master.
“Looking forward, we are excited about our upcoming innovative product line integrated with entertainment content, to growing our franchises globally including the relaunch of Bakugan and to launching the Monster Jam and How to Train your Dragon licensed product lines.”
Ben Gadbois, Spin Master’s president and chief operating officer, stated that while he is confident the industry will recover the sales lost to the Toys R Us liquidation, the firm did not see as much recovery in the third quarter as it expected.
He has commended the company’s efforts and resilience in “what has been a challenging period” for the industry.
“We achieved both revenue and profitability growth in the quarter over last year and generated operating leverage through a strong focus on cost management,” he said.