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Record quarter for Mattel as CEO Ynon Kreiz cites “exceptional results reflective of firm’s turnaround”

Mattel has seen first quarter net sales up by 47 per cent year on year in what the toy maker’s chairman and CEO, Ynon Kreiz has called ‘another record quarter for the company’ with “exceptional results” reflective of the firm’s turnaround.

This marks Mattel’s third consecutive quarter of growing market share with results that have caused for renewed optimism in the success of the company to both ‘improve profitability and accelerate topline growth in 2021 and beyond.’

Kreiz has noted that while growth this quarter was “partially driven by year over year Covid-related comparisons” and lower sales in the same quarter the year prior owing to the onset of the pandemic, the toy maker believes its results overall are “attributable to the strength of brands, quality and breadth of product, and world class supply chain, as well as effective demand creation in partnership with its retail partners.”

Mattel saw net sales in North America increase 67 per cent as reported versus the prior year’s first quarter. This was driven by growth across its Dolls – including Barbie and Spirit – sector, as well as its Infant, Toddler, and Pre-school (including Fisher-Price and Thomas & Friends), Vehicles (including Hot Wheels), and Action Figures, Building Sets, Games, and Other (including Masters of the Universe, Jurassic World, Plush, WWE, and Mega).

Net sales in the international segment increased 30 per cent as reported driven by similar growth across the categories.

Decreases in net sales occurred across Mattel’s American Girl segment by 22 per cent.

Mattel has stated that its top priority continues to be the health and safety of its people, and at the same time, mitigating the disruption of the Covid-19 pandemic to the business.

Anthony DiSilvestro, CFO of Mattel, said: “Mattel delivered another outstanding quarter, and we are very pleased with our start to the year. Free Cash Flow improved significantly along with our Free Cash Flow Conversion rate, leverage ratio continues to come down, and the debt refinancing provides additional flexibility as we continued to make further progress towards our strategy to improve profitability and accelerate topline growth.

“We believe we are well-positioned to gain momentum for the full year. We are revising 2021 guidance to reflect our stronger-than-anticipated first quarter performance and updated outlook for cost inflation.”

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