Spin Master has seen gross product sales increase to $587.4 million in its third quarter financial results, a growth of 0.7 per cent that has been led by increases across its boys action and construction, activities, games and puzzles, plush and outdoor sectors this year.
The marginal growth is an increase on its $583.3 million for the third quarter period the year prior and arrives amid what has been a challenging year across the industry due to the impact of the coronavirus pandemic. Spin Master saw an increase in gross product sales by 15.6 per cent in Europe, and a decline of 2.6 per cent in North America.
“This quarter we showed continued progress on many fronts,” said Ronnen Harary, Spin Master’s co-CEO. “We launched one of our strongest Fall lines ever, with many of our toys making retailers’ top toy lists and in the quarter we grew both Gross Product Sales and Revenue while managing through the uncertain conditions arising from COVID-19.
“In September, we premiered our first-ever straight-to-streaming entertainment franchise Mighty Express and also saw significant growth in our Toca Boca digital games business driven by increased engagement and new content. Thanks to the dedication and tenacity of our team members globally, we are very well positioned for the holiday season with strong POS momentum globally for our products, lean retail inventories and continued consumer demand within the toy category.”
Mark Segal, SPin Master’s chief financial officer, added: “Our efforts to manage costs and improve our profitability continue to show progress. Our team achieved key milestones on our operational improvement goals well ahead of schedule and we are well positioned to execute our plan.
“During the quarter, we have reduced our inventory levels and improved our net working capital and liquidity position. With a diversified portfolio of brands, entertainment franchises and digital games across our global platform and a very solid financial base, we remain focused on investing to create long term value.”
Spin Master’s Activities, Games and Puzzles and Plush increased by $20.1 million or 13.2 per cent to US$172.5 million. The increase was driven primarily by Kinetic Sand, the Games & Puzzles portfolio, Cool Maker, Rainbow Jellies and Orbeez, partially offset by declines in GUND and Bunchems.
Remote Control and Interactive Characters decreased by $28.7 million or 24.5 per cent to $88.6 million, primarily due to lower sales of Owleez and Hatchimals, partially offset by increases in Monster Jam RC and Ninja Bots.
Boys Action and Construction increased by $28.4 million or 27.5 per cent to $131.6 million. The increase was primarily driven by DC licensed products, Present Pets and Tech Deck, offset in part by declines in DreamWorks Dragons, Boxer and Bakugan.
Pre–School and Girls decreased by $21.6 million or 10.6 per cent to $182.4 million. The decrease was driven primarily by declines in PAW Patrol, Twisty Petz, Candylocks and Awesome Blossems, offset in part by higher sales of Pre Cool.