Simba Dickie Group reports on financial year 2024
Looking back on the past financial year, the Group is very satisfied with the growth in sales in view of the geopolitical and economic challenges; the financial position is still described as very solid. An increase in sales is planned for the current year.
The year 2024 was characterised by a number of geopolitical and economic challenges. The wars in Ukraine and the Middle East shaped the global political landscape and had a far-reaching impact on the global economy. ‘In this difficult environment,’ reports Moritz Duschl, CFO of the international toy group, ’the Simba Dickie Group achieved a consolidated total turnover of EUR 711.7 million. This represents an increase of 5.4 per cent on the previous year's consolidated total turnover of EUR 675.2 million. We are very satisfied with this sales performance given the current negative market developments in Europe and especially in Germany.’
Consumer restraint in Germany
The current difficult conditions and the associated consumer restraint due to unchanged high inflation rates, interest rates and energy prices and a fundamentally uncertain or negative overall economic outlook led to a rather weak sales trend in Germany. ‘However, overall stable sales in our international markets and significant increases in sales in the USA more than compensated for the development in Germany,’ Moritz Duschl is pleased to report.
The turnover of the Simba Dickie Group's German companies, including the joint sister company in Hong Kong, totalled EUR 227.5 million in the 2024 calendar year and thus remained roughly at the previous year's level. Sales in the previous year totalled EUR 224.5 million. Direct business from Hong Kong in particular compensated for the decline in sales in Germany.
International sales increase
In the International division of the Simba Dickie Group with the foreign companies Smoby Toys, Corolle, Jada Toys, Pico, Majorette and Zimpli Kids, sales increased by 16.6 per cent from EUR 217.6 million in the previous year to EUR 253.8 million in 2024. ‘The main reason for this more than pleasing development,’ explains Moritz Duschl, ’is the positive development of the US market and the continued positive development of our important production sites in France and Thailand.’
The Simba Dickie Group's foreign sales branches and other companies generated total sales of EUR 230.5 million in 2024. Turnover therefore fell slightly by 1.1 per cent compared to the previous year's figure of EUR 233.1 million.
The Simba Dickie Group's international share in the 2024 calendar year was almost 80 per cent. As in the previous year, the most important foreign markets are the USA, France and the Benelux countries.
Optimistic forecast for 2025
Moritz Duschl is optimistic about 2025: ‘The current geopolitical and economic challenges will continue to accompany and challenge us in 2025. Despite this difficult environment, the Simba Dickie Group is planning to increase its consolidated total turnover by 3.2 per cent to EUR 734.5 million in 2025.’
Earnings/financial situation
‘The earnings and financial situation of the Simba Dickie Group,’ announces Moritz Duschl, ’has improved once again compared to the previous year and can still be described as good and very solid.’
Important investments and changes in 2024
The Simba Dickie Group's total investment volume in 2024 was in the order of EUR 36 million.
The focus was on the production of moulds and tools amounting to around EUR 13 million, investments in buildings, particularly warehouses, amounting to around EUR 2 million and replacement investments as well as operating and office equipment amounting to over EUR 6 million. Around EUR 2 million was invested in machinery and mechanical equipment in order to keep the machinery in the Group's production facilities, particularly in the areas of plastics, zinc injection moulding, metal and wood processing, up to date and to implement further automation.
Planned investments and measures for 2025
For the calendar year 2025, the Simba Dickie Group is also planning ‘to consistently continue investing in machinery in all of the Group's production facilities,’ summarises Moritz Duschl. ‘This will serve to leverage further rationalisation effects. We will also invest in tools for new products on the same scale as in 2024.’
In the IT area, the focus will be on the SAP connections of the subsidiaries Jada Toys Ltd. in the USA and the Bulgarian sales branch. In addition, the first SAP modules will be converted to SAP S4 Hana as early as 2025.
The estimated investment volume for 2025 - as far as is currently known and planned - will be in the region of 40 million euros. As in the previous year, Germany will account for around 40 per cent of this.