Despite significant hype surrounding the Barbie movie, Mattel’s UK sales have not seen anticipated improvements.
- Mattel, based in Berkshire, reported a turnover of £145.5 million for the year, down from £162.4 million in 2022.
- Pre-tax profits experienced a slight increase, rising from £8.2 million to £10.4 million.
- The challenging economic climate and inventory volatility significantly impacted Mattel’s quarterly results.
- Mattel remains a leader in key toy categories, reinforced by brands like Polly Pocket and Hot Wheels.
Despite the exceptional success of the Barbie movie in 2023, Mattel’s sales in the UK did not reflect the expected uptick. The company’s Berkshire-based division declared a turnover of £145.5 million over the last 12 months, showing a notable drop from the £162.4 million reported in 2022, based on recent accounts submitted to Companies House. This decrease highlights the pressures the company faced amidst difficult economic conditions.
Contrasting the fall in sales, Mattel reported a modest rise in pre-tax profits, which climbed to £10.4 million from £8.2 million. This improvement indicates effective cost management and operational efficiency despite a drop in gross revenue. Known for popular lines such as Polly Pocket, Fisher-Price, Thomas & Friends, and Hot Wheels, Mattel endured economic headwinds while preserving profitability.
The company’s statement highlighted the challenges posed by a volatile macro-economic environment, with a pronounced impact visible in quarterly financial outcomes. Factors such as unexpected consumer demand patterns during the 2022 holiday season led retailers to adjust inventory orders, consequently affecting sales. Higher retailer inventory levels from the late 2022 fiscal period extended their influence into the first half of 2023.
However, as inventory shipping patterns started to normalise, Mattel experienced growth in the latter half of 2023. This period, benefitted from the success of the Barbie movie, suggesting some recovery in sales dynamics. Yet, overall sales performance for the year lagged behind previous expectations.
Ynon Kreiz, Mattel’s chairman and CEO, marked 2023 as a milestone, citing gains in market share across key toy categories and the extraordinary success of the Barbie movie. While recognising the resilient brand leadership of Mattel, Kreiz also acknowledged the company’s strengthened financial positioning, even as net sales globally, at $5.44 billion, remained relatively flat.
Overall, Mattel’s UK sales were unable to capitalise on the Barbie movie’s popularity amidst macroeconomic challenges.
