Spin Master sales soar 31% in 2016
The company’s Q4 product sales shot up 59.4%, driven by PAW Patrol and Hatchimals
Spin Master has posted a a strong full-year 2016, capped by a lucrative Christmas peak sales period which saw revenue soar 31 per cent on 2015. In the final three months of the year, revenue hit $338.4million, up from $258.4m in the same period in 2015.
Global gross product sales increased 30.9 per cent to $376.2 million, compared to $287.5 million in Q4 2015, driven by sales of PAW Patrol and Hatchimals. Specifically in Europe, gross product sales sky rocketed 59.4 per cent.
Other Revenue, which primarily reflects merchandising royalty and television distribution income from products marketed by third parties using Spin Master's owned intellectual property, as well as App revenue from Toca Boca and Sago Mini (acquired in Q2 2016), increased 53.8% to US$12.3 million from US$8.0 million in Q4 2015. Gross profit in Q4 2016 increased 30.7% to $172.0 million, representing 50.8% of revenue, compared with $131.6 million, or 50.9% of revenue in the comparable period last year, reflecting higher sales volume.
"An excellent performance in the fourth quarter of 2016 wrapped up another year of very strong growth for Spin Master," said Anton Rabie, Chairman and Co-Chief Executive Officer of Spin Master. "The quarter was also highlighted by an agreement to increase and amend Spin Master's Credit Agreement with total borrowing capacity of up to US$510 million under the new committed facility. We have significantly enhanced our financing capacity and flexibility, which together with our internally generated free cash flow, is expected to continue to support our growth."
For the full year ended 31 December 2016, Spin Master generated revenue of $1,154.5 million, an increase of 31.3 per cent compared to $879.4 million for the year ended December 31, 2015. In constant currency terms, revenue increased by 32.9% relative to 2015.
"Spin Master continues to generate strong financial results," said Ben Gadbois, President and COO of Spin Master. "Operationally, our rolling 36-month brand innovation pipeline continues to generate innovation that we intend to build on to drive future growth.”
Ronnen Harary, Spin Master's Co-CEO, added: “We are very pleased with our performance in 2016. The successful launch of Hatchimals was a testament to our ability to innovate and highlighted the integration of our internal global R&D network with our external inventors. Our brands are continuing to resonate with children worldwide. Together with Cardinal and our recent acquisitions of Swimways and Toca Boca, we have strong momentum building across our business going into 2017."