Spin Master revenue soars in Q4 17
Hatchimal and Luvabella drive sales growth globally as revenues soar 30 per cent in the period
Spin Master saw revenue soar 30.3 per cent year-on-year in Q4 2017, with its hit brands Hatchimals and Luvabella driving sales.
Revenues hit $440.9m in the quarter, compared with $338.4m in the same period in 2016. Gross product sales also shot up by more than a third in Europe, where it increased by 34 per cent. Meanwhile, the sales success was mirrored in North America, up 12 per cent, and in the rest of the world gross product sales rose a whopping 94 per cent.
While sales of Air Hogs and Zoomer slumped in the quarter, strong performances across Hatchimals, Luvabella and Cardinal games drove enough growth to "more than offset" the dip.
Spin Master chairman and CEO Anton Rabie said: Our excellent performance in the fourth quarter capped off another year of significant revenue and profitability growth for Spin Master. Our Spin Master team performed exceptionally well globally and our investments in talent are driving positive results."
Anton also pointed to the future growth of the company, namely through acquisition.
"We continue to be active on the acquisition front. In Q4 we acquired the Perplexus brand, an innovative game we have distributed since 2013," he said. “On 5 March, we agreed to acquire Gund, a plush toy business that is best known for its iconic teddy bears. Gund has a 120-year history as a market leader and toy industry pioneer widely known for its high quality and innovative design. We are excited about our expansion into the infant toy and specialty gift categories.”
Ben Gadbois, Spin Master's president and COO added: “Anchored by our global, collaborative innovation capabilities and the discipline of our 36 month brand innovation pipeline, we delivered breakthrough, category-defining products with global appeal such as Hatchimals Surprise, Soggy Doggy and Luvabella."