WASHINGTON–(COMMERCIAL THREAD) – Chairman and CEO of Mattel, Inc. (NASDAQ: MAT) Ynon Kreiz attended a White Home roundtable yesterday with President Biden and high U.S. CEOs to debate provide chain and the vacation season in america.
Mr. Kreiz mentioned: “I’ve been inspired by President Biden’s dedication to assist the personal sector in mitigating provide chain disruptions, together with port congestion. Mattel appreciates the management of the administration to assist focus consideration and sources on this essential space.
We proceed to fulfill provide chain challenges and work intently with our valued retail companions to attempt to meet the unprecedented demand for our product. We’re positive there shall be loads of Mattel toys for teenagers of all ages to get pleasure from this vacation season.
The toy business is rising and is predicted to proceed to develop as youngsters, dad and mom and caregivers play extra essential roles of their lives. We recognize the invitation to share info with the White Home on Mattel’s perspective on the availability chain and getting ready the toy business for the vacation season. We look ahead to persevering with the dialogue.
Individually in the present day, talking on the forty fifth Nasdaq Investor Convention, Kreiz added, “The fourth quarter has began effectively. With lower than a month of vacation purchasing days, we’re feeling nice for the vacation season and anticipate to proceed to develop and achieve market share within the fourth quarter as anticipated. ”
Mr. Kreiz additional famous that Mattel is on monitor to attain its highest annual progress charge in many years. When releasing its third quarter 2021 outcomes, the corporate raised its steerage for the third time this yr for fixed foreign money internet gross sales and Adjusted EBITDA for full yr 2021. The corporate expects that internet gross sales this yr improve by round 15% in fixed currencies. foreign money and Adjusted EBITDA are between $ 900 and $ 925 million. The corporate reiterated this focus at in the present day’s forty fifth Nasdaq convention, which could be seen right here.
The worldwide toy business is predicted to develop by + 5.4% CAGR over the subsequent 5 years by way of 2025. International Toys has skilled 10 consecutive years of progress and all time highs and is predicted to exceed $ 100 billion in 2023. (Supply: Euromonitor Conventional Toys & Video games Analysis 2021, present / face worth in USD, fastened alternate charge 2020).
This press launch comprises a lot of forward-looking statements inside the which means of the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements could be recognized by the truth that they don’t relate strictly to historic or present information. The usage of phrases resembling “anticipates”, “expects”, “intends to”, “plans”, “is satisfied”, “believes” and “focused”, amongst others, typically determine forward-looking statements. These forward-looking statements are based mostly on at the moment accessible operational, monetary, financial and different info and assumptions, and are topic to a lot of vital dangers and uncertainties. Quite a lot of components, a lot of that are past Mattel’s management, might trigger precise future outcomes to vary materially from these projected in forward-looking statements, and are at the moment, and could also be sooner or later, magnified by the pandemic. of COVID-19. The precise components that might trigger such a distinction embody, however will not be restricted to: (i) potential impacts and uncertainty relating to the COVID-19 pandemic (and actions taken in response by governments, companies and people ) on Mattel’s enterprise operations, monetary outcomes and situation and on the worldwide financial system, together with its impression on Mattel’s gross sales; (ii) Mattel’s means to design, develop, produce, manufacture, supply, ship and distribute merchandise in a well timed and price efficient method; (iii) enough curiosity in and demand for our merchandise and leisure from retail clients and customers to cost-effectively get well prices from Mattel; (iv) downturns in financial situations affecting Mattel’s markets which can negatively impression retail clients and customers, and which can lead to decrease employment ranges and decrease disposable revenue and shopper spending , together with decrease spending on buying Mattel merchandise; (v) different components that will cut back discretionary shopper spending, resembling greater gasoline and meals prices, declining values of properties or different shopper items, and excessive ranges of debt customers; (vi) any difficulties or potential delays Mattel might encounter in implementing price saving and effectivity enchancment initiatives; (vii) different financial and public well being situations or regulatory adjustments within the markets by which Mattel and its clients and suppliers function, which might trigger delays or improve Mattel’s prices, resembling uncooked materials costs, greater labor or transport, or epidemics; (viii) foreign money fluctuations, together with fluctuations in alternate charges and inflation, which can cut back Mattel’s internet revenues and earnings, and have a major impression on Mattel’s prices; (ix) focus of Mattel clients, probably growing the damaging impression on Mattel of difficulties skilled by any of Mattel’s clients, resembling bankruptcies or liquidations or a basic lack of success, or adjustments of their habits shopping for or promoting; (x) Mattel’s retail buyer stock insurance policies, in addition to Mattel’s income focus within the second half of the yr, which, coupled with retailers’ reliance on fast response stock administration strategies, is growing the chance of underproduction, overproduction and transport delays; (xi) authorized, reputational and monetary dangers related to safety breaches or cyber assaults; (xii) labor disruptions, together with attributable to provide chain disruption and plant closures, which can impression Mattel’s means to fabricate or ship the product in a well timed method and worthwhile; (xiii) the impression of competitors on revenues, margins and different features of Mattel’s enterprise, together with the power to supply merchandise that buyers select to purchase over aggressive merchandise, the power to ‘Receive, keep and renew the favored licenses of the licensors of leisure properties, and the power to draw and retain proficient workers; (xiv) the chance of product recollects or product legal responsibility lawsuits and prices related to product security rules; (xv) adjustments in legal guidelines or rules in america and / or different main markets, resembling China, by which Mattel operates, together with, with out limitation, with respect to taxes, pricing, commerce insurance policies or product security, which can improve the prices of Mattel’s merchandise and different prices of doing enterprise, and cut back Mattel’s revenues; (xvi) failure to comprehend anticipated income from any funding or acquisition made by Mattel; (xvii) the impression of different market situations or actions or approvals of third events, together with that lead to materials failure, insufficiency or interruption on the a part of suppliers or subcontractors, which might cut back demand for Mattel’s merchandise, delay or improve the price of implementing applications, or modify Mattel’s actions and cut back precise outcomes; (xviii) adjustments in funding markets or Mattel’s lack of ability to acquire financing on enticing phrases; (xix) the impression of litigation, arbitration, regulatory selections or settlement actions; (xx) uncertainty related to the deliberate termination of LIBOR and the change to some other benchmark rate of interest; and (xxi) different dangers and uncertainties which may be described in paperwork filed by Mattel with the Securities and Change Fee, together with the “Threat Components” part of Mattel’s annual report on Kind 10-Okay for the fiscal yr ended December 31, 2020 and subsequent periodic information, in addition to in different public statements by Mattel. Mattel doesn’t replace any forward-looking statements and expressly disclaims any obligation to take action, besides as required by legislation.
Non-GAAP monetary measures
A reconciliation of Mattel’s non-GAAP monetary measures on a potential foundation, together with internet gross sales at fixed alternate charges and Adjusted EBITDA, shouldn’t be accessible with out unreasonable effort. Mattel can’t predict with enough certainty what could be excluded from the corresponding GAAP measure, together with the impact of alternate charge fluctuations, uncommon good points and losses or costs, and severance and termination advantages. restructuring, because of the unpredictable nature of this stuff, which can have a major impression on Mattel’s GAAP measures.
Mattel is a number one international toy firm and proprietor of one of many strongest catalogs of kids’s and household leisure franchises on the planet. We create revolutionary merchandise and experiences that encourage, entertain and develop youngsters by way of play. We have interaction customers by way of our portfolio of iconic manufacturers together with Barbie®, Scorching Wheels®, Fisher-Value®, American Lady®, Thomas & Mates®, UNO®, Masters of the Universe®, Monster Excessive® and MEGA®, in addition to different standard mental properties that we personal or license in partnership with international leisure firms. Our choices embody movie and tv content material, video games, music and stay occasions. We function in 35 areas and our merchandise can be found in additional than 150 international locations at the side of the world’s largest retail and e-commerce firms. Since its founding in 1945, Mattel has proudly been a trusted associate in enabling youngsters to discover the wonders of childhood and attain their full potential. Go to us on-line at mattel.com.