Mattel Q1 2022 Earnings Report
Key Takeaways
Mattel reported its highest first quarter results on record for net sales, operating income, and EBITDA. Net sales increased by 19% to $1,041 million, and operating income rose by 136% to $80 million. The company reiterates its 2022 guidance and 2023 goals.
Net sales increased by 19% as reported, and 22% in constant currency.
Reported operating income increased by 136%, an increase of $46 million.
Reported EPS was $0.06, an improvement of $0.38 per share.
Company reiterates 2022 guidance and 2023 goals.
Mattel
Mattel
Mattel Revenue by Segment
Forward Guidance
Mattel's 2022 guidance remains as follows: Net Sales +8 - 10% (Constant currency), Adjusted Gross Margin ~47%, Adjusted EBITDA $1,100 - $1,125 million, Adjusted EPS $1.42 - $1.48, Adjusted Tax Rate 26 - 28%, Capital Expenditures $175 - $200 million.
Positive Outlook
- Expect to grow net sales in 2022 by 8-10% in constant currency.
- Driven by growth in leader categories, led by power brands and American Girl.
- Expect to achieve strong growth in the second quarter.
- Continue to improve free cash flow.
- Improve conversion rate and leverage ratio for the full year.
Challenges Ahead
- Anticipated supply chain disruption that the company is aware of today but remains subject to any unexpected supply chain disruption.
- Market volatility.
- Other macro-economic risks and uncertainties, including those associated with COVID-19.
- Unexpected supply chain disruption could negatively impact performance.
- Market volatility and other macro-economic risks and uncertainties could negatively impact performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income