Mattel Boasts Record-Setting $1B in FY22 Q1 Net Sales

If the reports about Mattel putting itself on the block are true, potential buyers could be getting a company on the upswing based on the toymaker’s fiscal 2022 first-quarter earnings report announced Wednesday (April 27).

The company broke $1 billion in quarterly net sales, ending the first three months of the year at a record-high $1.041 billion, up 19% from the same time one year earlier and up 22% in constant currency. The company also achieved its highest first-quarter operating income and EBITDA.

“Our strong performance continued, with growth across regions, categories, and our three power brands,” Mattel Chairman and CEO Ynon Kreiz said in the company press release. “These results are in line with our strategy to grow Mattel’s IP-driven toy business. Having completed our turnaround in 2021, we are firmly in growth mode and operating as an IP-driven, high-performing toy company.”

Unlike others that have struggled with supply chain snags, all of Mattel’s factories are fully operational, said Kreiz.

“Mattel’s supply chain is playing a key role in our success,” he said. “We are working with our retail partners to ensure product is available on shelves to meet consumer demand. The full-year outlook is strong, we expect to grow market share, and we are reiterating our 2022 guidance and 2023 goals.”

Mattel expects to grow its net sales 8% to 10% in 2022, with its so-called power brands and American Girl leading the way, said CFO Anthony DiSilvestro.

Related: Mattel Considering Sale After Corporate Turnaround

Earlier this week, The Wall Street Journal cited people close to the situation in reporting that Mattel has been discussing a potential sale with private equity firms, including Apollo Global Management and L Catterton.

The news outlet called Mattel’s talks with Apollo and L Catterton “informal,” noting they are “at an early stage and may not result in a deal.” Mattel has a market capitalization of about $8 billion, the report says. In February, Kreiz said the company had completed its turnaround and was “now in growth mode.”