Spin Master has seen product sales increase an impressive 42.8 per cent across the European market, building a solid quarter for the Canadian toymaker.
Bakugan, DreamWorks’ Dragons, Monster Jam and a return to growth for PAW Patrol have helped fuel a successful selling period for Spin Master, who has seen overall revenue in its Q2 2019 financials rise three per cent to $321 million.
Gross product sales grew 1.2 per cent in North America, with a decline of 1.7 per cent in the rest of the world, while gross profit grew 7.2 per cent to $164.3 million.
“Our second quarter results demonstrated the strength, diversity, and depth of our innovative product portfolio with positive momentum for many of our key brands, including Bakugan, PAW Patrol, DreamWorks’ Dragons, and MonsterJam,” said Ronnen Harary, Spin Master’s chairman and Co-CEO.
“Looking forward, we remain confident in our proven track record of innovation and in our global platform. We continue to demonstrate our ability to produce compelling entertainment content, magical toy experiences, and to be a great partner for licensors.”
While the overall picture is a positive one for Spin Master, there’s been a notable shift in the strength of Spin Master’s product sectors.
For instance, gross product sales in activities, games and puzzles as well as plush decreased by $6 million, or 7.1 pr cent. The decrease was driven largely by lower sales in games and puzzles portfolio which includes Cardinal, and lower sales of Bunchems. This was partially off-set by increases in Cool Maker, Gund, and Kinetic Sand.
Meanwhile, dipping sales of Hatchimals and Zoomer contributed to a plunging RC and intractive character product sales total, that decreased 34.9 per cent to $44.5 million. This was partially off-set by sales of Monster Jam RC and Juno My Baby Elephant.
DreamWorks’ Dragons, Bakugan and Monster Jam, however, helped the boys action and high tech construction sector grow its gross product sales by $42.8 million, while increases in pre-school and girls of 10.3 per cent, were driven primarily by higher sales of PAW Patrol and Twisty Petz.
“Despite the significant decline in Hatchimals sales on a year over year basis, we grew both our gross product sales and adjusted EBITDA in the second quarter,” added Ben Gadbois, Spin Master’s global president and chief operating officer.
“Our relentless focus on innovation and strong execution against our four growth strategies drove solid performance.
“We continued to invest in building a global distribution platform that positions us for future growth and we executed our strategy to consolidate Swimways, Cardinal, Gund and our LA Games & Puzzles business in Long Island City, New York.
“Entering the second half of 2019, we believe we have solid global POS momentum and sustained demand for our core franchises together with a solid balance sheet that allows us to capitalise on strategic acquisition opportunities.”