Last month, Spin Master was one of just a few toymakers to report preliminary fourth quarter and full year numbers prior to meeting with analysts at Toy Fair New York. As promised, final numbers were released at the close of business today, and they’re essentially spot-on to what was reported unofficially in February. As previously reported on The Toy Book, Spin Master’s 2018 gross product sales rose 3.1 percent, while the fourth quarter saw a decrease of 3.8 percent. Revenue for the year was up 5.2 percent, while net income decreased 3.8 percent.
“We are pleased with our performance in 2018. Despite the disruptive impact that the Toys R Us liquidation had on the toy industry in 2018, we delivered an increase in our full year gross product sales and grew adjusted EBITDA to record levels for Spin Master,” says Ronnen Harary, Spin Master’s chairman and co-CEO. “Our 2019 product and entertainment offering displays the innovation and creativity that our customers have come to expect from Spin Master. We expect growth in 2019 to be based on a mix of proven licenses such as Monster Jam and How to Train your Dragon, a range of our own intellectual property including the global relaunch of Bakugan, fresh content for PAW Patrol and the roll-out of our new show Abby Hatcher as well as highly innovative new products. We’re excited by the initial response to our 2019 line and pleased that our PAW Patrol and Abby Hatcher shows occupy the number one and two positions in the preschool space respectively.”
In our annual State of the Toy Industry Q&A series, Spin Master president and chief operating officer, Ben Gadbois, noted a focus on innovation and acquisitions to drive the company’s future. In speaking about the latest financial reports, he reiterated that, while pointing out that the impact of an unusual year should soon be behind us.
“Our performance in a challenging year has demonstrated that our focus and our strong execution against our four key growth strategies have positioned Spin Master for long term success,” he explained. “Although we expect the retail disruption that impacted the toy industry in 2018 to continue through the first half of 2019, we are looking forward to solid growth in the second half of the year, and for 2019 as a whole. We remain focused on achieving sustainable, long-term profitable growth based on our proven formula for idea generation, innovative design and broad distribution. In addition, our global scale and strong balance sheet puts us in an excellent position to capitalize on acquisition opportunities.”
