Spin Master believes it can sustain revenue growth in the high teens, as it expands into several new toy categories.
Dramatic growth has come at a price for Spin Master, the Toronto-based entertainment company behind this season’s hit toy, the Hatchimals line of plush creatures.
Although revenue jumped 22.3 per cent year over year to $475 million (U.S.) in the November quarter, product development, distribution, marketing and acquisition-related costs pushed general expenses ahead by 26.2 per cent.
That compares to a 23.8-per-cent increase a year ago for the 22-year-old company, with rising costs in turn driving a 1.3-per-cent year-over-year decline in adjusted operating profit margin. Read More...