WASHINGTON–(COMMERCIAL THREAD) – Chairman and CEO of Mattel, Inc. (NASDAQ: MAT) Ynon Kreiz attended a White House roundtable yesterday with President Biden and top U.S. CEOs to discuss supply chain and the holiday season in the United States.
Mr. Kreiz said: â€œI have been encouraged by President Biden’s commitment to support the private sector in mitigating supply chain disruptions, including port congestion. Mattel appreciates the leadership of the administration to help focus attention and resources on this important area.
We continue to meet supply chain challenges and work closely with our valued retail partners to try to meet the unprecedented demand for our product. We’re sure there will be plenty of Mattel toys for kids of all ages to enjoy this holiday season.
The toy industry is growing and is expected to continue to grow as children, parents and caregivers play more important roles in their lives. We appreciate the invitation to share information with the White House on Mattel’s perspective on the supply chain and preparing the toy industry for the holiday season. We look forward to continuing the dialogue.
Separately today, speaking at the 45th Nasdaq Investor Conference, Kreiz added, â€œThe fourth quarter has started well. With less than a month of holiday shopping days, we are feeling good for the holiday season and expect to continue to grow and gain market share in the fourth quarter as expected. ”
Mr. Kreiz further noted that Mattel is on track to achieve its highest annual growth rate in decades. When releasing third quarter 2021 results, the company raised its guidance for the third time this year for constant currency net sales and Adjusted EBITDA for full year 2021. The company expects that net sales this year increase by around 15% in constant currencies. currency and Adjusted EBITDA are between $ 900 and $ 925 million. The company reiterated that direction at today’s 45th Nasdaq conference, which can be viewed here.
The global toy industry is expected to grow by + 5.4% CAGR over the next five years through 2025. Global Toys has experienced 10 consecutive years of growth and all time highs and is expected to exceed $ 100 billion in 2023. (Source: Euromonitor Traditional Toys & Games Research 2021, current / face value in USD, fixed exchange rate 2020).
This press release contains a number of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. The use of words such as “anticipates”, “expects”, “intends to”, “plans”, “is convinced that”, “believes” and “targeted”, among others, generally identify forward-looking statements. These forward-looking statements are based on currently available operational, financial, economic and other information and assumptions, and are subject to a number of significant risks and uncertainties. A variety of factors, many of which are beyond Mattel’s control, could cause actual future results to differ materially from those projected in forward-looking statements, and are currently, and may be in the future, magnified by the pandemic. of COVID-19. Specific factors that could cause such a difference include, but are not limited to: (i) potential impacts and uncertainty regarding the COVID-19 pandemic (and actions taken in response by governments, businesses and individuals ) on Mattel’s business operations, financial results and condition and on the global economy, including its impact on Mattel’s sales; (ii) Mattel’s ability to design, develop, produce, manufacture, source, ship and distribute products in a timely and cost effective manner; (iii) sufficient interest in and demand for our products and entertainment from retail customers and consumers to cost-effectively recover costs from Mattel; (iv) downturns in economic conditions affecting Mattel’s markets which may negatively impact retail customers and consumers, and which may result in lower employment levels and lower disposable income and consumer spending , including lower spending on purchasing Mattel products; (v) other factors that may reduce discretionary consumer spending, such as higher costs for fuel and food, declines in the value of homes or other consumer goods, and high levels of debt consumers; (vi) any difficulties or potential delays Mattel may encounter in implementing cost saving and efficiency improvement initiatives; (vii) other economic and public health conditions or regulatory changes in the markets in which Mattel and its customers and suppliers operate, which could cause delays or increase Mattel’s costs, such as raw material prices, higher labor or transport, or epidemics; (viii) currency fluctuations, including fluctuations in exchange rates and inflation, which may reduce Mattel’s net revenues and earnings, and have a significant impact on Mattel’s costs; (ix) concentration of Mattel customers, potentially increasing the negative impact on Mattel of difficulties experienced by any of Mattel’s customers, such as bankruptcies or liquidations or a general lack of success, or changes in their habits buying or selling; (x) Mattel’s retail customer inventory policies, as well as Mattel’s revenue concentration in the second half of the year, which, coupled with retailers’ reliance on rapid response inventory management techniques, is increasing the risk of underproduction, overproduction and shipping delays; (xi) legal, reputational and financial risks associated with security breaches or cyber attacks; (xii) labor disruptions, including due to supply chain disruption and plant closures, which may impact Mattel’s ability to manufacture or deliver the product in a timely manner and profitable; (xiii) the impact of competition on revenues, margins and other aspects of Mattel’s business, including the ability to offer products that consumers choose to buy over competitive products, the ability to ‘Obtain, maintain and renew the popular licensors of entertainment properties, and the ability to attract and retain talented employees; (xiv) the risk of product recalls or product liability lawsuits and costs associated with product safety regulations; (xv) changes in laws or regulations in the United States and / or other major markets, such as China, in which Mattel operates, including, without limitation, with respect to taxes, pricing, trade policies or product safety, which may increase the costs of Mattel’s products and other costs of doing business, and reduce Mattel’s revenues; (xvi) failure to realize anticipated profits from any investment or acquisition made by Mattel; (xvii) the impact of other market conditions or actions or approvals of third parties, including which result in failure, insufficiency or significant interruption on the part of suppliers or subcontractors, which could reduce demand for Mattel’s products, delay or increase the cost of implementing programs, or modify Mattel’s actions and reduce actual results; (xviii) changes in funding markets or Mattel’s inability to obtain financing on attractive terms; (xix) the impact of litigation, arbitration, regulatory decisions or settlement actions; (xx) uncertainty associated with the planned termination of LIBOR and the switch to any other benchmark interest rate; and (xxi) other risks and uncertainties that may be described in documents filed by Mattel with the Securities and Exchange Commission, including the â€œRisk Factorsâ€ section of Mattel’s annual report on Form 10-K for the fiscal year ended December 31, 2020 and subsequent periodic records, as well as in other public statements by Mattel. Mattel does not update any forward-looking statements and expressly disclaims any obligation to do so, except as required by law.
Non-GAAP financial measures
A reconciliation of Mattel’s non-GAAP financial measures on a prospective basis, including net sales at constant exchange rates and Adjusted EBITDA, is not available without unreasonable effort. Mattel cannot predict with sufficient certainty what would be excluded from the corresponding GAAP measure, including the effect of exchange rate fluctuations, unusual gains and losses or charges, and severance and termination benefits. restructuring, due to the unpredictable nature of these items, which may have a significant impact on Mattel’s GAAP measures.
Mattel is a leading global toy company and owner of one of the strongest child and family entertainment franchise catalogs in the world. We create innovative products and experiences that inspire, entertain and develop children through play. We engage consumers through our portfolio of iconic brands including BarbieÂ®, Hot WheelsÂ®, Fisher-PriceÂ®, American GirlÂ®, Thomas & FriendsÂ®, UNOÂ®, Masters of the UniverseÂ®, Monster HighÂ® and MEGAÂ®, as well as other popular intellectual properties that we own or license in partnership with global entertainment companies. Our offerings include film and television content, games, music and live events. We operate in 35 locations and our products are available in more than 150 countries in conjunction with the world’s largest retail and e-commerce companies. Since its founding in 1945, Mattel has proudly been a trusted partner in enabling children to explore the wonders of childhood and reach their full potential. Visit us online at mattel.com.