Mega Brands returns to profit in Q4 - ToyNews

Mega Brands returns to profit in Q4

Licensed toys fuel surge in sales, but Rose Art continues to disappoint.
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Mega Brands has reported net sales in the fourth quarter also increased by four per cent to $111.8 million, compared to $107.3 million in the corresponding 2009 period.

Net profit was $10.2 million, compared to a net loss of $22.1 million in the fourth quarter of 2009.

For the full year, 2010, net sales increased by nine per cent to $368 million, compared to $338.9 million in 2009. Net profit for the year, was $125.9 million, compared to $10.7 million in 2009.

Mega says the improvement in its 2010 results was led by its toys portfolio, which more than offset lower results in the stationery and activities segment. Revenues increased three per cent in North America and 20 per cent in international markets.

Marc Bertrand, president and CEO, commented: "We are pleased with our overall performance, with 20 per cent growth in worldwide toy sales for the year driven by strong contributions from core Mega Bloks product lines and licences such as Thomas & Friends and Halo."

For 2011, the company is launching several new Mega Bloks product lines complemented by new licences such as Hello Kitty in the pre-school category and Need for Speed in the boys category.

"The construction category continues to outperform the toy industry and we entered the year with good momentum and a solid business plan to increase sales and profitability in 2011," concluded Bertrand.

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