Spielwarenmesse: Mattel reports full year and fourth quarter 2019 financial results

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Mattel reports full year and fourth quarter 2019 financial results

14. February 2020 10:35 h

Full Year 2019 Highlights

  • Company exceeded its full year 2019 guidance, making consistent progress in its transformation into an IP-driven, high-performing toy company. 
  • Net Sales of $4,505 million, flat as reported, including the negative foreign exchange impact of $75 million, and up 1% in constant currency, versus prior year.  
  • Gross Sales of $5,065 million, flat as reported, including the negative foreign exchange impact of $92 million, and up 2% in constant currency.  
  • Structural Simplification run-rate savings of $875 million exiting 2019, exceeding target of $650 million by $225 million, or 35%  
  • Reported Gross Margin of 44.0%, an improvement of 420 basis points; Adjusted Gross Margin of 44.9%, an improvement of 480 basis points   
  • Reported Operating Income of $39 million, an improvement of $274 million; Adjusted Operating Income of $156 million, an improvement of $269 million. 
  • Cash Flows Provided by Operating Activities of $181 million, an improvement of $208 million, achieving positive operating cash flow for the first time in three years. 
  • Free Cash Flow of $65 million, an improvement of $244 million, achieving positive Free Cash Flow for the first time in three years.
  • Mattel was the #1 U.S. and global toy company in 2019, per NPD.

Fourth Quarter 2019 Highlights

  • Net Sales of $1,474 million, down 3% as reported, including the negative foreign exchange impact of $9 million, and down 3% in constant currency, versus the prior year’s fourth quarter.
  • Gross Sales of $1,665 million, down 3% as reported, including the negative foreign exchange impact of $12 million, and down 2% in constant currency.  
  • Reported Gross Margin of 48.4%, an improvement of 180 basis points; Adjusted Gross Margin of 48.9%, an improvement of 230 basis points.  
  • Reported Operating Income of $68 million, a decline of $38 million; Adjusted Operating Income of $109 million, a decline of $2 million.

Mattel, Inc. yesterday reported full year and fourth quarter 2019 financial results.

Ynon Kreiz, Chairman and CEO, Mattel said: “2019 was an important inflection point in our turnaround. We stabilized our topline after five consecutive years of revenue decline, continued to significantly improve profitability, and achieved positive operating cash flow and positive free cash flow for the first time in three years. We are very encouraged by the consistent progress the company is making and expect to continue to build on this momentum. We remain focused on the execution of our multi-year turnaround strategy to transform Mattel into an IP-driven, high-performing toy company and create long term shareholder value.”

Joseph Euteneuer, CFO, Mattel said: “In 2019, our methodical execution of our strategy to restore profitability generated significant improvements across key metrics, including margins, operating income, EBITDA, and cash flows. We are extremely pleased with our results to date and are very proud of the efforts made by the Mattel team.”

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