The uncertainty surrounding the spread of COVID-19 prompted Toronto-based Spin Master to withdraw its previously issued 2020 outlook.

On March 4, the company said that it was expecting gross product sales to decline in the mid-single-digit range this year, excluding supply chain and other disruptions related to the coronavirus situation. Due to the fluid nature of the challenges associated with COVID-19, Spin Master says that it will not issue any further guidance in the near term.

“Since early March we have seen a substantial improvement in our Asian supply chain, particularly in China, as expected,” says Mark Segal, Spin Master’s executive vice president and chief financial officer. “However, the disruption we are now seeing in key customer markets resulting from the impact of COVID-19 is significant and we are withdrawing our fiscal 2020 guidance statement as a result thereof. Our balance sheet remains strong, with cash on hand and committed credit lines available, which provides us with significant financial flexibility. Spin Master is known for its resiliency and entrepreneurial spirit. We believe in our ability to withstand any issues and continue to succeed.”

Spin Master says that its production volume is beginning to approach normal levels at its facilities across China, Vietnam, and India. A further update will be issued on May 6 when the company reports its Q1 financials.