TakaraTomy have published full details of their first quarter results which showed that restructuring and an increase in sales of boys toys saw their profits increase by a staggering 551.9%!
Net sales dropped 1% for year-on-year, to £1.36 billion but net income increased by 551.9% to £68.7 million mainly due to an increase in the sales of their "boys toys" business, reconstruction of their business portfolios and general reduction of costs.
This is the highest recorded profits for the group since the Takara-Tomy merger which is great news for the company. The toy side of their business was net sales fall by 0.2% to £872.3 million, with income increasing by 58.3% to £108.79 million.
When you look at global trends for TakaraTomy you can pick up on the following trends.
1. Within Japan, product expansion and promotional in-store events led to a significant increase sales for Bayblade, whilst Duel Masters and Tomica both also saw increased popularity and growth. Net sales were up 0.4% to £1.25 billion, with operating incoming up 66.3% to £93.59 million (both figures are year-on-year)
2. Within the US the increase in Transformers sales was highlighted by the company as being the key factor within this territories growth. Net sales were actually down 41%, while operating income increased from a loss of £2.81 million to a £360,171 of profit. Despite this return to profit within the US, this remains their weakest market
3. Within Europe TakaraTomy saw strong growth in their arts and crafts sector which targets the baby and pre-school markets but this wasn't enough to see both their net sales and income decrease. Net sales figures were down 16.9% to £76.53million with incoming also down to £1.4 million, 10.8%. Europe continues to be a troublesome area for TakaraTomy and though they are still making profit within this territory more job cuts could be on the way. Decreases within the European marketing budget and redundancies also led to financial growth within Europe.
4. Within the rest of Asia net sales were down 132% to £199.13 million, though operating income did increase by 16.6% to £8.36 million.
TakaraTomy also reduced manufacturing costs by moving from China to Vietnam.
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