The Canadian company is the latest toy supplier to post an increase in sales during the first three months of the year.
“We delivered very strong margins and profitability in the first quarter and are particularly pleased with the broad nature of our performance improvements compared to Q1 2020,” commented Mark Segal, Spin Master’s chief financial officer.
The financial results for the three months to March 31st reveal revenue of $316.6m, which represented an increase of 39.3% over the corresponding period in 2020. Gross Product Sales increased by 21.6% to US$294.7m, primarily driven by higher sales in the Pre-School, Girls and Outdoor categories. Gross Product Sales increased by 44.6% in the Rest of the World, 21.2% in Europe and 18.0% in North America.
Gross Product Sales in Activities, Games & Puzzles and Plush increased by S$7.4m (9.2%) to $87.5m. The increase was driven primarily by sales of Rubik’s and Inkfluencer, and increases in the Games & Puzzles portfolio. Gross Product Sales in Pre-school & Girls increased by $24.1m (33.0%) to $97.2 million. The increase was driven primarily by sales of Paw Patrol and Present Pets. Gross Product Sales in Boys increased by $7.3m (12.0%) to $68m. The increase was primarily driven by sales of Monster Jam, Bakugan, Tech Deck and Supercross. Gross Product Sales in Outdoor increased by $13.6m (47.9% ) to $42m.
Ronnen Harary, Spin Master’s co-founder, commented: “It is very gratifying to see both our strong financial and operating performance this quarter compared to the same period last year, especially from the continued growth in digital games. We recognize the incredible dedication of our teams across the globe. Together, they have rallied to drive the strong results we achieved this quarter. As we manage through the complexities of the pandemic, I am continually amazed and impressed by the effort and dedication of our employees.”
Max Rangel, Spin Master’s newly appointed global president & CEO added: “At the heart of Spin Master’s growth story is a remarkable purpose; to create magical play experiences for children and their families around the world. Our commitment to that purpose is unwavering. How we bring this vision to market across our three creative centres will continue to evolve and adapt to the changing content landscape, consumer preferences and emerging trends in children’s entertainment. With this solid foundation, supported by relentless innovation and operational excellence, we see tremendous potential for Spin Master and are focused on driving profitable growth and creating significant value for our shareholders.”
Speaking about the results, CFO Mark Segal said: “Revenue grew as a result of higher Gross Product Sales and growth in digital games, led by Toca Life World. Our operational improvements continued to allow us to execute more efficiently and effectively this quarter. Our solid financial position with cash on hand of over $260m, gives us increasing opportunities to leverage our diverse and global platform for organic growth and acquisitions. We expect many of the trends that drove this performance in the first quarter to continue and we are raising our outlook for 2021.”
