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Mattel Chairman and CEO Ynon Kreiz Attends White House Roundtable Meeting With President Biden and Leading U.S. CEOs to Discuss Supply Chain and the Holiday Shopping Season
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Mattel, Inc. attended a White House meeting to discuss supply chain issues with President Biden and industry leaders. CEO Ynon Kreiz expressed optimism about the company's ability to meet holiday demand, citing ongoing challenges in the supply chain. During the Nasdaq 45th Investor Conference, Kreiz reiterated full-year guidance, predicting a 15% increase in net sales and Adjusted EBITDA between $900-925 million. The global toy industry is expected to grow significantly, with forecasts suggesting revenues may exceed $100 billion in 2023.
Positive
CEO Ynon Kreiz reiterated full-year earnings guidance at Nasdaq conference.
Company expects a 15% increase in net sales for 2021.
Adjusted EBITDA forecast between $900-925 million.
Positive outlook for holiday season sales.
Negative
Continuing supply chain challenges could impact product availability.
Company Reiterates Full Year Earnings Guidance at Nasdaq 45th Investor Conference
WASHINGTON--(BUSINESS WIRE)--
Mattel, Inc. (NASDAQ: MAT) Chairman and CEO Ynon Kreiz attended a White House roundtable meeting with President Biden and leading U.S. CEOs yesterday to discuss supply chain and the holiday shopping season in the U.S.
Mr. Kreiz said: “I was encouraged by President Biden’s commitment to support the private sector in mitigating supply chain disruptions, including in particular port congestion. Mattel appreciates the Administration’s leadership in helping to focus attention and resources on this important area.
We continue to work through supply chain challenges and collaborate closely with our valued retail partners to try to meet the unprecedented demand for our product. We are confident that there will be plenty of Mattel toys for children of all ages to enjoy this holiday season.
The toy industry is growing and it is expected to continue to grow as children, parents and caregivers have made play a bigger part of their lives. We are grateful for the invitation to share information with the White House about Mattel’s perspective on supply chain and the toy industry’s preparation towards the holiday season. We look forward to continuing the dialogue.”
Separately today, in speaking at the Nasdaq 45th Investor Conference, Kreiz added: “The fourth quarter is off to a good start. With less than a month of shopping days for the holidays, we feel good about the holiday season and expect to continue growing and gain market share in the fourth quarter in line with our guidance.”
Mr. Kreiz further noted that Mattel is on track to achieve its highest full-year growth rate in decades. On its third quarter 2021 earnings call, the company raised guidance for the third time this year for both Net Sales in constant currency and Adjusted EBITDA for the full year in 2021. The company expects net sales this year to increase by approximately 15% in constant currency and Adjusted EBITDA to be in the range of $900-925 million. The company reiterated that guidance at today’s Nasdaq 45th Conference, which can be viewed here.
The Global toy industry is forecast to grow +5.4% CAGR the next five years through 2025. Global Toys have experienced 10 consecutive years of growth and all-time highs and are estimated to top $100 billion in 2023. (Source: Euromonitor Traditional Toys & Games Research 2021, USD current/nominal value, 2020 fixed exchange rate).
Forward-Looking Statements
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,” “plans,” “confident that,” “believes,” and “targeted,” among others, generally identify forward-looking statements. These forward-looking statements are based on currently available operating, 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 the forward-looking statements, and are currently, and in the future may be, amplified by the COVID-19 pandemic. Specific factors that might cause such a difference include, but are not limited to: (i) potential impacts of and uncertainty regarding the COVID-19 pandemic (and actions taken in response to it by governments, businesses, and individuals) on Mattel’s business operations, financial results and financial position 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 on a timely and cost-effective basis; (iii) sufficient interest in and demand for the products and entertainment we offer by retail customers and consumers to profitably recover Mattel’s costs; (iv) downturns in economic conditions affecting Mattel’s markets which can negatively impact retail customers and consumers, and which can result in lower employment levels and lower consumer disposable income and spending, including lower spending on purchases of Mattel’s products; (v) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (vi) potential difficulties or delays Mattel may experience in implementing cost savings and efficiency enhancing 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 create delays or increase Mattel’s costs, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease; (viii) currency fluctuations, including movements in foreign exchange rates and inflation, which can lower Mattel’s net revenues and earnings, and significantly impact Mattel’s costs; (ix) the concentration of Mattel’s customers, potentially increasing the negative impact to 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 purchasing or selling patterns; (x) the inventory policies of Mattel’s retail customers, as well as the concentration of Mattel’s revenues in the second half of the year, which coupled with reliance by retailers on quick response inventory management techniques increases the risk of underproduction, overproduction, and shipping delays; (xi) legal, reputational, and financial risks related to security breaches or cyberattacks; (xii) work disruptions, including as a result of supply chain disruption and plant shutdowns, which may impact Mattel’s ability to manufacture or deliver product in a timely and cost-effective manner; (xiii) the impact of competition on revenues, margins, and other aspects of Mattel’s business, including the ability to offer products which consumers choose to buy instead of competitive products, the ability to secure, maintain, and renew popular licenses from licensors of entertainment properties, and the ability to attract and retain talented employees; (xiv) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xv) changes in laws or regulations in the United States and/or in other major markets, such as China, in which Mattel operates, including, without limitation, with respect to taxes, tariffs, trade policies, or product safety, which may increase Mattel’s product costs and other costs of doing business, and reduce Mattel’s earnings; (xvi) failure to realize the planned benefits from any investments or acquisitions made by Mattel; (xvii) the impact of other market conditions or third party actions or approvals, including that result in any significant failure, inadequacy, or interruption from vendors or outsourcers, which could reduce demand for Mattel’s products, delay or increase the cost of implementation of Mattel’s programs, or alter Mattel’s actions and reduce actual results; (xviii) changes in financing markets or the inability of Mattel to obtain financing on attractive terms; (xix) the impact of litigation, arbitration, or regulatory decisions or settlement actions; (xx) uncertainty from the expected discontinuance of LIBOR and transition to any other interest rate benchmark; and (xxi) other risks and uncertainties as may be described in Mattel’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of Mattel’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and subsequent periodic filings, as well as in Mattel’s other public statements. Mattel does not update 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 forward-looking basis, including Net Sales on a constant currency basis and Adjusted EBITDA, is not available without unreasonable effort. Mattel is unable to predict with sufficient certainty items that would be excluded from the corresponding GAAP measure, including the effect of foreign currency exchange rate fluctuations, unusual gains and losses or charges, and severance and restructuring charges, due to the unpredictable nature of such items, which may have a significant impact on Mattel’s GAAP measures.
About Mattel
Mattel is a leading global toy company and owner of one of the strongest catalogs of children’s and family entertainment franchises 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 Barbie®, Hot Wheels®, Fisher-Price®, American Girl®, Thomas & Friends®, UNO®, Masters of the Universe®, Monster High® and MEGA®, 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, gaming, music, and live events. We operate in 35 locations and our products are available in more than 150 countries in collaboration with the world’s leading retail and ecommerce companies. Since its founding in 1945, Mattel is proud to be a trusted partner in empowering children to explore the wonder of childhood and reach their full potential. Visit us online at mattel.com.
