The following is a summary of the Spin Master Corp. (SNMSF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Spin Master's total Q1 revenue increased by 16.5%, in great part due to the Melissa & Doug addition. Excluding the same, there was a slight increase of 1.6%. The company's gross profit was $156.5 million, down by $2 million, but the adjusted gross profit was reported to be $177.1 million.
Revenue growth were noted in several segments like Preschool; infant and toddler; plush; activities; games and puzzles; dolls and interactive segments etc. However, slight declines were also reported in Wheels, action and the outdoor segment.
The Q1 adjusted EBITDA was reported to be $18.6 million, contrast to $30.6 million in Q1 of the previous year.The cash balance at the end of Q1 was reported to be $205.5 million. The company has managed to improve its free cash flow situation considerably and repurchased 600,000 shares as part of the NCIB approved on March 4, 2024.
Business Progress:
Spin Master has numerous important initiatives lined up, including the release of a PAW Patrol feature film in July 2026 and a Gabby's Dollhouse film in September 2025, along with a toy line launch in collaboration with Ms. Rachel in Fall 2024.
Successful Q1 product launches like Burrow Bunny, Dentist Set, and Scoop and Serve Ice Cream have driven sales. They are expecting high revenue from new product launches in Q3/Q4.
Spin Master is laying further ground for the expansion of Melissa & Doug's business abroad in 2025.
The successful launches and performances of in-house products like Unicorn Academy, Vida the Vet, Hatchimals, Puny Rooms, and Monster Jam will see major innovations rolled out in the following months, which the company is keenly focused on.
More details: SPIN MASTER CORP IR
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