Mattel closed last year on a strong note, reporting sales growth in the fourth quarter and exceeding key financial targets.
Chairman and CEO Ynon Kreiz said the company focused on expanding profitability, improving gross margins, and generating strong free cash flow – achieving all three ahead of expectations.
“Last year was a year of strong operational excellence for Mattel with topline growth in the fourth quarter,” said Kreiz. “We look forward to growing both top and bottom line and continuing to execute our multi-year strategy successfully.”
Net sales for the fourth quarter reached $1.65 billion, a 2 per cent increase from the prior year. Operating income rose to $158 million, while net income for the quarter was $141 million.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $249 million, an increase of $15 million from the previous year.
For the full year, net sales totalled $5.38 billion, down 1 per cent as reported, with an adjusted EBITDA of $1.01 billion, $110 million higher versus the year prior.
Meanwhile, operating income climbed to $694 million, while adjusted operating income reached $738 million. Net income surged to $542 million, a $327 million increase from the previous year.
Earnings per share more than doubled to $1.58, with adjusted earnings per share rising to $1.62. The company also repurchased $400 million worth of shares last year.
Mattel CFO Anthony DiSilvestro said the company has set ambitious targets for this year, including increased investments in digital gaming and repurchasing $600 million worth of shares.
“We are well positioned to continue to create long-term shareholder value,” he added.