Company is encouraged by progress being made and expects to continue to build on this momentum.
Net sales were flat for the full year 2019, including the negative foreign exchange impact of $75m, and were up 1% in constant currency versus the previous year. Reported operating Income was $39.2m, an improvement of $273.6m, and adjusted operating Income was $156.2m, up $269.3m.
For Q4, net sales were down 3%, including the negative foreign exchange impact of $9m, and down 3% in constant currency, versus the prior year’s fourth quarter. Reported operating Income was $67.6m, a decline of $38m, and adjusted operating income was $109.3m, a decline of $2.2m.
Joseph Euteneuer, CFO, Mattel said: “In 2019, our methodical execution of our strategy to restore profitability generated significant improvements across key metrics, including margins, operating income, EBITDA, and cash flows. We are extremely pleased with our results to date and are very proud of the efforts made by the Mattel team.”
Net sales in the North America segment for 2019 were flat as reported and in constant currency, versus the prior year. Gross sales were flat, and up 1% in constant currency, primarily driven by growth in Vehicles, Dolls, Action Figures, Building Sets and Games. This growth was partially offset by a decline in Infant, Toddler and Pre-school.
Net sales in the International segment for 2019 increased 3% as reported, and 7% in constant currency. Gross Sales increased 2% as reported and 6% in constant currency, driven by growth in Dolls, Vehicles and Action Figures, Building Sets and Games. This growth was also partially offset by a decline in Infant, Toddler and Pre-school.
In Q4, Net sales in the North America segment decreased 3%, versus the prior year’s fourth quarter. The decrease was primarily driven by a decline in Dolls and Infant, Toddler and Pre-school, partially offset by growth in Vehicles and Action Figures, Building Sets and Games. Net Sales in the International segment were flat as reported, and up 1% in constant currency. Gross Sales in the International segment decreased 1%, driven by a decline in Infant, Toddler and Pre-school. The decrease was partially offset by growth in Dolls and Action Figures, Building Sets and Games
Ynon Kreiz, chairman and CEO, said: “2019 was an important inflection point in our turnaround. We stabilized our top line after five consecutive years of revenue decline, continued to significantly improve profitability, and achieved positive operating cash flow and positive free cash flow for the first time in three years. We are very encouraged by the consistent progress the company is making and expect to continue to build on this momentum. We remain focused on the execution of our multi-year turnaround strategy to transform Mattel into an IP-driven, high-performing toy company and create long term shareholder value.”
