Canadian toy and entertainment company, Spin Master, has released its Q2 earnings report, announcing a 12.6 per cent increase in revenue (compared to 2017) to US$311.5 million for the three months ending 30 June.
Gross profit was up 8.4 per cent in Q2, increasing to US$153.2 million compared to US$141.4 million in 2017.
Net income for the period increased 21.7 per cent to US$26.9 million compared to US$22.1 million in Q2 2017.
Gross product sales for the company were US$296.2 million for the second quarter, an increase of 4.6 per cent compared to 2017.
"We are pleased with our operating and financial results for the second quarter, in which we achieved solid revenue and profit growth under challenging industry circumstances," Ronnen Harary, Spin Master's chairman and Co-CEO said in a statement.
In terms of gross product category sales, the activities, games and puzzles and fun furniture posted the largest gain, up 49.1 per cent to US$86.1 million compared to US$57.7 million in 2017, primarily driven by sales of Gund products as well as Cool Maker, Kinetic Sand, Cardinal and Marbles.
Boys action and high-tech construction products' gross sales increased by 20.5 per cent to US$21.1 million thanks to high sales of Star Wars licensed products, while gross sales of remote control and interactive characters decreased by 18.7 per cent to US$68.3 million, due to lower sales of Hatchimals, Zoomer and Air Hogs.
Pre-school and girls gross product sales decreased slightly - 3.1 per cent - to US$87.4 million for Q2, due to lower sales of Paw Patrol, Zhu Zhu Pets and Chubby Puppies.
Geographically, North American gross product sales were up 3 per cent, despite declines in Hatchimals, Air Hogs and Zoomer; Europe was down 7.1 per cent, due to decreases in Hatchimals and Paw Patrol; while the rest of the world was the strongest market for Spin Master, with gross product sales increasing 26.6 per cent due to increases in Hatchimals and Paw Patrol.
In light of its Q2 report, Harary said that Spin Master is in a good position for future growth and is excited about future launches across an array of categories.
"Looking forward to the balance of 2018 and beyond, we are excited about our upcoming innovative product launches as well as our new entertainment content.
"Our ability to create multiple consumer touch points, including physical products, traditional and innovative entertainment content and mobile games, is resulting in greater attachment to our brands and franchises. This has positioned Spin Master well for continued future growth."
To view the full report, click here.