Spin Master Corp. emerged from a challenging year with fourth-quarter sales that were softer than expected.
The Toronto-based toy and entertainment company reported that gross sales declined 7.1% in Q4 to $511.8 million versus $550.7 million during the same period last year. For the full-year, gross sales fell to $1.62 billion, a 4% decline from $1.69 billion in 2019.
“We’re proud of the significant operational improvements and cost efficiencies our team delivered in 2020, while simultaneously navigating the complexities of the global pandemic,” says Ronnen Harary, co-CEO, Spin Master. “At the outset, we were committed to resolving the operational challenges we faced in 2019. I am pleased to say that we achieved our goal through significantly improved focus and execution in every function across Spin Master globally. We are particularly excited with the strong growth we saw in our digital games business led by Toca Life World. With a clear vision for our future, a solid operating platform with three thriving creative centers encompassing toys, entertainment, and digital games and an exceptional leadership team in place, fortified by the appointment of Max Rangel as global president and with him assuming the position of CEO in April, we are now poised for our next stage of growth.”
Like its counterparts at Hasbro and Mattel, Spin Master is placing increased emphasis on its digital gaming and entertainment business with revenues from those streams growing in importance.
For the year, Spin Master found success in its DC licensed products — including its growing Batman brand —Tech Deck, Present Pets, Kinetic Sand, its games and puzzles portfolio, Rainbow Jellies, Orbeez, and Monster Jam RC. The company says it experienced declines across GUND, Bakugan, DreamWorks Dragons, Meccano, PAW Patrol, Hatchimals, and other brands.
Spin Master’s Ronnen Harary and Mark Segal will host a conference call to discuss earnings tomorrow at 9:30 a.m.
