Q2 2024 Spin Master Corp Earnings Call Transcript
Key Points
- Spin Master Corp (SNMSF) maintained its full-year guidance despite a 2.1% revenue decline, showing resilience in a challenging market.
- The company saw strong performance from its Lucent brand, with revenue of $43.3 million and significant market penetration in Mexico, Canada, and Europe.
- Spin Master Corp (SNMSF) maintained its position as the fourth largest global toy manufacturer in Q2, with retail inventory levels in a healthier state compared to last year.
- The company experienced strong international growth for its Gabby’s Dollhouse brand, with new content releases on Netflix and experiential events planned in the US.
- Spin Master Corp (SNMSF) saw a 7% increase in revenue from its Entertainment Creative Center, driven by successful content releases and licensing deals.
- Revenue from digital games declined by 14.3% due to lower in-game purchases in Toca Life World, reflecting broader industry trends.
- Adjusted EBITDA margin decreased to 13% from 21% due to a higher proportion of revenue from the Toys Creative Center and dilution from the Melissa & Doug acquisition.
- Gross profit decreased by $31.4 million to $199.6 million, with gross margin declining to 48.4% from 54.9%, primarily due to the impact of the Melissa & Doug inventory fair market value adjustment.
- Consumer spending across discretionary categories remains challenged, with Spin Master Corp (SNMSF) experiencing an 8.1% decline in POS in Q2.
- The company faces inflationary pressures on certain lines of ocean freight, which could impact costs and margins moving forward.
Good morning, ladies and gentlemen, and welcome to the Spin Master Corp. second quarter 2024 Results Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. At any time during this call you require immediate assistance, please press star zero for the operator for this call is being recorded on Wednesday, July 31st, 2020. Before I would now like turn the conference over to Sophia best. Lucas, please go ahead.
Thank you, Joel, and good morning. Welcome to Spin Master's Financial Results Conference Call for the Second Quarter 2024, and I'm joined this morning by Max wrangle Spin Master's Global President and CEO, and Mark Siegel, Spin Master's Chief Financial Officer. For your convenience, the press release, MD&A and interim consolidated financial statements are available on the Investor Relations section of our website at investor.com and on SEDAR plus.
Before we begin, please note that remarks on this conference call may
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