Canadian toy company Spin Master attributes the revenue growth recorded in its financial report for the first quarter of 2017, to the strength of its innovation and the children’s embrace of its entertainment properties.
Spin master Q1 revenue increased 40.8 per cent to $227.7 million, up from US$161.7 million, while brands including PAW Patrol, Hatchimals and Swimways contributed to a 31.8 per cent increase of gross product sales to US$229.1 million.
Gross product sales increased 32.9 per cent in North America, 39.2 per cent in Europe and 13.6 per cent throughout the rest of the world. International Gross Product Sales on a combined basis represented 33 per cent of total Gross Product Sales in Q1 2017, the same as the comparable period in 2016.
“Our entertainment properties including PAW Patrol are resonating very well with children globally and the ongoing success of the Hatchimals line is a testament to our ability to innovate,” Ronnen Harary, Spin Master co-CEO said.
Spin Master net income was US$10.1 million, or IUS$0.10 per share, compared with US$9.9 million, or US$0.10 per share in Q1 2016
“Spin Master continues to generate solid financial results,” Ben Gadbois, Spin Master president and COO said.
“Q1 2017 was characterised by the continued execution of our four key growth strategies and included some investment spending that will position us well for future growth
"Gross Product Sales growth over last year of nearly 40 per cent in Europe, and 33 per cent in North America – despite the later timing of Easter – exceeded our expectations and highlights our strategy to grow our global sales. We are managing our inventory well and POS results continue to indicate strong consumer engagement with our brands and products."
“The strong momentum we saw in 2016 is continuing in 2017,” Harary, said. “Our entertainment properties including PAW Patrol and the recently launched Rusty Rivets are resonating very well with children globally and the ongoing success of the Hatchimals line including the just released Hatchimals Colleggtibles, is a testament to our ability to innovate.”