Yesterday, UK time 9pm, Spin Master announced its financial results for the three months and full year ended 31 December 2024. The Company’s full management discussion and analysis (“MD&A”) for the three months full year is posted on the Company’s web site. All financial information is presented in United States dollars (“$”, “dollars” and “US$”) and has been rounded to the nearest hundred thousand, except per share amounts and where otherwise indicated.
Max Rangel, Spin Master global president & CEO, said: “I’m proud of our team’s relentless commitment to creating magical play experiences by launching excitement and innovation in the toy category, enhancing customization and value in digital games and producing engaging entertainment content that resonates with audiences globally. These collective efforts helped us achieve our 2024 Gross Product Sales and Revenue expectations. We are pleased with the progress we have made in integrating Melissa & Doug, which had a strong year, generating growth with new product launches and expanded distribution.
“We were pleased with our revenue performance with growth of 29% for the fourth quarter and just under 19% for the full year”
“Looking forward, we are excited about our formula for growth across all our creative centres, including innovation and licenses within Toys, a positive trajectory in Digital Games driven by Toca Boca World and Piknik and our strong Entertainment content pipeline, all in support of our goal of igniting kids’ imaginations and driving and sustaining long-term, profitable growth in order to maximize shareholder value.”
Mark Segal, Spin Master CFO: said: “We were pleased with our revenue performance with growth of 29% for the fourth quarter and just under 19% for the full year. We achieved over $10 million in Net Cost Synergies for the year related to the Melissa & Doug integration, which represents an annualized run-rate of $14 million against our target of $25 – $30 million run-rate by the end of 2026.
“We generated $215 million in adjusted free cash flow in 2024, reinforcing the cash generative power of our underlying businesses. Our disciplined and holistic approach to capital allocation continues to be a key driver of shareholder value. We remain committed to a balanced approach – continuing to look for opportunities to invest strategically in high-return growth opportunities while also returning capital to shareholders through dividends and share repurchases. We repurchased over 2.3 million shares under our NCIB in 2024. Looking ahead, our financial framework for value creation puts us in a solid position financially and operationally to generate long-term growth.”
2024 full year highlights
- 2024 Revenue was $2,263.0 million, an increase of 18.8%, and includes Melissa & Doug Revenue of $374.7 million.
- 2024 Operating Income was $165.5 million compared to $188.9 million in 2023.
2024 Q4 highlights
- Q4 2024 Revenue was $649.1 million, an increase of 29.1%, and includes Melissa & Doug Revenue of $136.0 million.
- Q4 2024 Operating Income was $47.1 million compared to a previous Operating Loss of $36.6 million.
2025 Outlook – Spin Master 2025 expectations
- Toy Gross Product Sales to increase 4% to 5% compared to 2024
- Toy Gross Product Sales seasonality to be approximately 31% to 33% in the first half.
- Revenue to increase 4% to 6% compared to 2024.
- Adjusted EBITDA Margin1 of 20.0% to 21.0% as compared to 20.5% in 2024.
The Company’s Outlook for 2025 includes the recently acquired Melissa & Doug.
www.spinmaster.com/en-US/corporate/investor-relations
