Mattel outlines plan for 2021 and beyond, expects sales to grow by mid-single digits through 2023
- The company sees revenue growing in the mid-single digits from the $4.58 billion seen in 2020.
- Mattel executives noted they see sales growing at a similar pace in 2022 and 2023.
Shares of Mattel rose as much as 4% on Wednesday as the company outlined its plans for 2021 and beyond.
As part of the company's investor day presentation, the toy maker reiterated its expectation for growth this year and laid out its forecasts for 2022 and 2023.
For 2021, Mattel expects adjusted EBITDA to range between $775 million and $800 million. That would be an increase from $719 million last year.
The company added it sees revenue growing in the mid-single digits from the $4.58 billion seen in 2020. Mattel executives noted they see sales growing at a similar pace in 2022 and 2023. The company also sees operating income margin staying in the mid-teens through 2023.
Additionally, Mattel expects cost savings of $250 million by 2023. Mattel cut costs by $1 billion between 2018 and 2020.
Since taking over as CEO in 2018, Ynon Kreiz has set in motion a multiyear strategy aimed at restoring profitability and reigniting topline growth while capturing the value of Mattel's intellectual properties.
Kreiz's plans involve implementing an online retail and e-commerce strategy as well as producing films showcasing the different Mattel brands. One of Kreiz's first moves since joining the company was launching a film and television division; it currently has more than 50 projects in the works. Among the projects are an Uno live-action film, a Whac-A-Mole game show and a Thomas & Friends series.
Mattel's forecasts come on the back of strong fourth-quarter results, which were released earlier this month.
Excluding items, Mattel earned 40 cents a share, which was higher than a Refinitiv earnings per share forecast of 23 cents. Sales jumped by 10% to $1.63 billion, outpacing the $1.58 billion analysts expected.
Correction: This story has been updated to reflect that Mattel expects adjusted EBITDA to range between $775 million and $800 million in 2021. A prior version of this story misstated the lower end of the range.
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