Barbie dolls from the Fashionistas line of the US toy manufacturer Mattel are on display at the company’s booth at the International Toy Fair on January 28, 2020 in Bavaria, Nuremberg. 2020.
Daniel Karmann | Image Alliance | Getty Images
Mattel’s shares rose up to 4% on Wednesday as the company set out its plans for 2021 and beyond.
During the company’s investor day presentation, the toy manufacturer reiterated its growth forecast for this year and set its forecasts for 2022 and 2023.
For 2021, Mattel expects adjusted EBITDA between $ 775 million and $ 800 million. That would be an increase of $ 719 million last year.
The company added that sales will grow in the mid-single-digit range of $ 4.58 billion in 2020. Mattel executives found that sales are growing at a similar pace in 2022 and 2023. The company also expects the operating profit margin to remain in their mid-teens through 2023.
In addition, Mattel expects cost savings of $ 250 million through 2023. Mattel cut costs by $ 1 billion between 2018 and 2020.
Since taking over as CEO in 2018, Ynon Kreiz has embarked on a multiyear strategy aimed at restoring profitability and reinvigorating revenue growth while capturing the value of Mattel’s intellectual property.
Kreiz plans to implement an online retail and e-commerce strategy, as well as producing films with the various Mattel brands. One of Kreiz’s first steps since joining the company was to set up a film and television department. More than 50 projects are currently in progress. Projects include a Uno live-action film, a Whac-A-Mole game show, and a Thomas & Friends series.
Mattel’s guidance is based on strong fourth quarter results released earlier this month.
Excluding items, Mattel made 40 cents per share, which was higher than refinitive earnings per share of 23 cents. Revenue rose 10% to $ 1.63 billion, beating the expected $ 1.58 billion.
Correction: This story has been updated to reflect that Mattel expects Adjusted EBITDA to be between $ 775 million and $ 800 million in 2021. In an earlier version of this story, the lower end of the range was incorrectly stated.
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