(New York) The American toy giant Mattel published increased fourth-quarter results on Wednesday, but announced that it was counting on stable turnover in 2024 and launched a new savings plan.
For the three months from October to December, turnover stood at $1.62 billion, up 16% year-on-year, according to a press release.
Growth was driven by dolls (+29%), notably Barbie (+27%), which rode on the eponymous film, the biggest box office success of the year.
The Barbie line accounted for a quarter of the group’s sales in the fourth quarter.
Mattel saw its market share increase by 7.5% in the global doll market, CFO Anthony DiSilvestro said during a conference call presenting the results.
Small cars (+18%), particularly Hot Wheels (+19%), also performed well.
Conversely, board games ran out of steam (+3%).
Net profit stood at $147 million, nine times last year’s profits at the same time.
The difference is explained by Mattel’s ability to control its costs and promotional expenses, as well as to raise its prices.
Net profit, like turnover, was lower than analysts’ forecasts.
Geographically, the El Segundo (California) company especially made a splash in the United States (+32%), marking time in the rest of the world (+3%).
For the current year, Mattel expects its turnover to be stable at constant exchange rates.
“We expect the toy industry to decline in 2024, although at a more moderate rate than in 2023,” CEO Ynon Kreiz warned during the conference call.
This contraction is due to a smaller number of film releases including licensed characters, but also to a change in consumer trends, detailed the executive.
Travel and concerts are more in fashion than toys, but Ynon Kreiz expects things to improve by the end of the year.
If its turnover actually stagnates this year, Mattel should still gain market share in a declining sector, underlined Anthony DiSilvestro.
Mattel plans to return to growth in 2025, he said.
In an uncertain and unfavorable environment, the group will launch a new cost reduction program, which targets $200 million in savings by 2026.