Mattel, Inc. (MAT) Bundle
A Brief History of Mattel, Inc.
Company Overview
Mattel, Inc. is a leading global toy company founded in 1945. It is well-known for iconic brands such as Barbie, Hot Wheels, and Fisher-Price. As of 2024, Mattel continues to evolve in the competitive toy industry, emphasizing innovation and brand expansion.
Recent Financial Performance
For the third quarter of 2024, Mattel reported net sales of $1.84 billion, a 4% decline from $1.92 billion in the same quarter of 2023. This decrease was attributed to reduced consumer demand following the success of the Barbie movie in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1.84 billion | $1.92 billion | -4% |
| Gross Profit | $979 million | $977.9 million | +0.1% |
| Operating Income | $488.3 million | $473.9 million | +3% |
| Earnings Per Share | $1.09 | $0.41 | +166% |
Segment Performance
In the North America segment, net sales were $1.11 billion for Q3 2024, down from $1.15 billion in Q3 2023, primarily due to lower sales of dolls and infant products. The segment operating income increased to $412.4 million from $401.1 million.
| Segment Performance | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| North America Net Sales | $1.11 billion | $1.15 billion | -3% |
| North America Operating Income | $412.4 million | $401.1 million | +3% |
Cash Flow and Capital Structure
Mattel ended Q3 2024 with a cash balance of $723.5 million, compared to $455.7 million in Q3 2023. Cash flows from operations for the trailing twelve months were $887.8 million.
In February 2024, Mattel authorized a $1 billion share repurchase program. By September 30, 2024, $731.7 million remained available for repurchases under this program.
| Cash Flow Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash Balance | $723.5 million | $455.7 million |
| Cash Flows from Operations | $887.8 million |
Debt Profile
As of September 30, 2024, Mattel's total debt was $2.33 billion, with an estimated fair value of $2.31 billion. The company maintains a balanced capital structure with stockholders' equity reported at $2.31 billion.
| Debt and Equity Metrics | Amount |
|---|---|
| Total Debt | $2.33 billion |
| Estimated Fair Value of Debt | $2.31 billion |
| Stockholders' Equity | $2.31 billion |
Strategic Initiatives
In July 2024, Mattel secured a new $1.4 billion revolving credit facility, maturing in July 2029, to enhance liquidity and support its growth strategy.
Outlook
Mattel is focusing on strengthening its brand portfolio and expanding its presence in the entertainment sector, leveraging its intellectual properties to drive future growth.
A Who Owns Mattel, Inc. (MAT)
Shareholder Structure
As of 2024, the ownership of Mattel, Inc. (MAT) is characterized by a diverse set of institutional and individual shareholders. The major shareholders include:
| Shareholder Type | Number of Shares (in millions) | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 193.4 | 57.0% |
| Insider Ownership | 10.2 | 3.0% |
| Retail Investors | 140.5 | 40.0% |
| Other | 0.1 | 0.0% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Mattel, Inc. as of early 2024:
| Institution | Shares Owned (in millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 34.4 | 10.1% |
| BlackRock, Inc. | 32.1 | 9.3% |
| State Street Corporation | 25.7 | 7.5% |
| Invesco Ltd. | 18.7 | 5.4% |
| Wellington Management Group LLP | 15.3 | 4.4% |
Executive Team and Insider Ownership
The executive team at Mattel, Inc. holds a significant portion of shares, with the following key executives and their respective ownership:
| Name | Title | Shares Owned (in thousands) |
|---|---|---|
| Ynon Kreiz | Chairman and CEO | 1,200 |
| Anthony DiSilvestro | Chief Financial Officer | 600 |
| Richard Dickson | President and COO | 500 |
Recent Developments in Share Ownership
In February 2024, the Board of Directors authorized a $1.00 billion share repurchase program, which was part of the company’s strategy to enhance shareholder value. As of September 30, 2024, Mattel had completed $268.3 million in share repurchases under this program.
As of September 30, 2024, the total number of shares outstanding was approximately 339.1 million, with a market capitalization of around $6.8 billion, reflecting a share price of approximately $20.00.
Market Performance
Mattel's stock performance has been impacted by various factors including product launches and film adaptations. The stock price has experienced fluctuations, with a recent price of $20.00 per share as of late September 2024.
Conclusion on Ownership Dynamics
Mattel, Inc.’s ownership structure is a blend of institutional, insider, and retail investors, which showcases a robust interest from various market participants. The ongoing share repurchase program is likely to impact future ownership dynamics and stock valuation.
Mattel, Inc. (MAT) Mission Statement
Overview of Mission Statement
As of 2024, Mattel, Inc. (MAT) emphasizes innovation, creativity, and inclusivity in its mission statement. The company aims to inspire the next generation of kids through play and creativity, focusing on engaging children in a meaningful way.
Financial Performance Related to Mission Objectives
Mattel's financial performance reflects its commitment to its mission. For the first nine months of 2024, Mattel reported net sales of $3.73 billion, a slight decrease of 2% from $3.82 billion in the same period in 2023. The company's operating income for the same period was $536 million with a gross profit margin of 50.9%.
Mission-Driven Brand Initiatives
- Barbie: Gross billings for Barbie decreased by 11% to $944.1 million as compared to $1.064 billion in the previous year, largely affected by the prior success of the Barbie movie.
- Hot Wheels: Gross billings for Hot Wheels increased by 8% to $1.093 billion from $1.014 billion.
- Fisher-Price: Gross billings for Fisher-Price increased by 3% to $494.7 million.
Investment in Future Growth
In alignment with its mission, Mattel has undertaken significant investments. In 2024, the Board of Directors approved a $1 billion share repurchase program, with $268.3 million executed in the first nine months. Additionally, Mattel entered into a new $1.4 billion revolving credit facility, enhancing its financial flexibility.
Strategic Cost Management
Mattel has implemented the "Optimizing for Profitable Growth" (OPG) program to achieve targeted annual gross cost savings of $200 million, of which approximately 70% will benefit cost of sales. This program is expected to be completed by 2026 and includes actions such as discontinuing production at a plant in China, aiming to align operational efficiencies with its mission.
Financial Summary Table
| Category | 2024 (YTD) | 2023 (YTD) | Change (%) |
|---|---|---|---|
| Net Sales | $3.73 billion | $3.82 billion | -2% |
| Operating Income | $536 million | $421.6 million | 27% |
| Gross Profit Margin | 50.9% | 46.9% | 6% |
| Barbie Gross Billings | $944.1 million | $1.064 billion | -11% |
| Hot Wheels Gross Billings | $1.093 billion | $1.014 billion | 8% |
| Fisher-Price Gross Billings | $494.7 million | $480.6 million | 3% |
| Share Repurchase Amount | $268.3 million | N/A | N/A |
| Revolving Credit Facility | $1.4 billion | N/A | N/A |
Summary of Operational Strategies
Mattel's operational strategies are tightly aligned with its mission. The company focuses on enhancing creativity through its product lines, engaging in strategic partnerships, and leveraging its intellectual property to strengthen brand presence. Operational improvements are designed to enhance profitability while continuing to deliver value to customers.
How Mattel, Inc. (MAT) Works
Company Overview
Mattel, Inc. (MAT) is a leading global toy company known for its iconic brands, including Barbie, Hot Wheels, and Fisher-Price. As of 2024, Mattel continues to focus on leveraging its intellectual property (IP) to drive sales and expand its market presence.
Financial Performance
In the third quarter of 2024, Mattel reported net sales of $1.84 billion, a decrease of 4% from $1.92 billion in the same period in 2023. The gross margin improved to 53.1% from 51.0% year-over-year, reflecting operational efficiencies and cost management strategies.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $1.84 billion | $1.92 billion | -4% |
| Gross Margin | 53.1% | 51.0% | +2.1% |
| Earnings Per Share (EPS) | $1.09 | $0.41 | +165% |
| Operating Income | $488.3 million | $473.9 million | +3% |
| Cash Balance | $723.5 million | $455.7 million | +59% |
Segment Performance
Mattel operates through two primary segments: North America and International. The North America segment generated net sales of $1.11 billion in Q3 2024, declining by 3% compared to $1.15 billion in Q3 2023. The International segment reported sales of $735.6 million, down 5% from $771.8 million in the previous year.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change (%) |
|---|---|---|---|
| North America | $1.11 billion | $1.15 billion | -3% |
| International | $735.6 million | $771.8 million | -5% |
Product Categories
Mattel's product offerings are categorized into several key segments including Dolls, Infant, Toddler, and Preschool, Vehicles, and Action Figures, Building Sets, Games, and Other. The following table summarizes gross billings by category for Q3 2024.
| Product Category | Q3 2024 Gross Billings | Q3 2023 Gross Billings | Change (%) |
|---|---|---|---|
| Dolls | $757.1 million | $884.5 million | -14% |
| Infant, Toddler, and Preschool | $349.8 million | $361.1 million | -3% |
| Vehicles | $580.0 million | $518.5 million | +12% |
| Action Figures, Building Sets, Games, and Other | $364.3 million | $357.7 million | +2% |
Cost Management Initiatives
Mattel has implemented the Optimizing for Profitable Growth (OPG) program, targeting annual gross cost savings of $200 million by 2026. This initiative focuses on supply chain efficiencies and cost reductions across its operations.
Cash Flow and Share Repurchase Program
For the trailing twelve months, Mattel's cash flows from operations reached $887.8 million. In February 2024, the Board approved a $1.00 billion share repurchase program, of which $268.3 million was executed in the first nine months of 2024.
Outlook and Risks
Mattel operates in a challenging macroeconomic environment that affects consumer demand. The company continues to navigate market dynamics while focusing on its strategic initiatives to enhance profitability and growth.
| Financial Metric | 2024 Outlook |
|---|---|
| Targeted Annual Gross Cost Savings | $200 million |
| Share Repurchase Authorization | $1.00 billion |
| Cash Flows from Operations (TTM) | $887.8 million |
How Mattel, Inc. (MAT) Makes Money
Revenue Streams
Mattel, Inc. generates revenue primarily through the sale of a wide range of toys and games across various categories. As of 2024, the company's net sales for the first nine months were $3.73 billion, a slight decrease of 2% compared to $3.82 billion in the same period of 2023.
Gross Billings by Category
In the first nine months of 2024, Mattel's gross billings were segmented as follows:
| Category | Gross Billings (in millions) | 2023 Gross Billings (in millions) | Percentage Change |
|---|---|---|---|
| Dolls | $1,465.6 | $1,631.1 | -10% |
| Infant, Toddler, and Preschool | $675.1 | $708.6 | -5% |
| Vehicles | $1,247.4 | $1,165.9 | 7% |
| Action Figures, Building Sets, Games, and Other | $763.2 | $755.0 | 1% |
| Total Gross Billings | $4,151.4 | $4,260.6 | -3% |
Key Brands Performance
Mattel's key brands have shown varied performance in 2024:
| Brand | Gross Billings (in millions) | 2023 Gross Billings (in millions) | Percentage Change |
|---|---|---|---|
| Barbie | $944.1 | $1,064.7 | -11% |
| Hot Wheels | $1,093.7 | $1,014.9 | 8% |
| Fisher-Price | $494.7 | $480.6 | 3% |
| Total Gross Billings for Top Brands | $2,532.5 | $2,560.2 | -1% |
Cost of Sales and Gross Profit
For the first nine months of 2024, Mattel's cost of sales was $1.83 billion, representing 49.1% of net sales, a decrease from 53.1% in 2023. The gross profit increased to $1.90 billion, up from $1.79 billion in the same period of 2023.
Operating Income
Operating income for the first nine months of 2024 was $536 million, which is a 27% increase from $421.6 million in the same period of 2023.
Advertising and Promotion Expenses
Advertising and promotion expenses decreased to $250.1 million, or 6.7% of net sales, down from 7.6% in the same period of 2023.
Net Income and Earnings Per Share
Net income for the first nine months of 2024 was $401 million, a significant increase from $67 million in the same period of 2023. Earnings per share rose to $1.17, compared to $0.19 in 2023.
Cash Flow and Financial Position
As of September 30, 2024, Mattel had a cash balance of $723.5 million, up from $455.7 million in the previous year. Cash flows from operations for the trailing twelve months were $887.8 million.
Segment Performance
Mattel's North America segment reported net sales of $2.19 billion for the first nine months of 2024, a decrease of 2% year-over-year. The International segment's net sales were $1.54 billion, also reflecting a 2% decrease.
Debt and Credit Facilities
In July 2024, Mattel entered into a new $1.40 billion revolving credit facility, which matures in July 2029, replacing the previous credit facility.
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Article updated on 8 Nov 2024
Resources:
- Mattel, Inc. (MAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mattel, Inc. (MAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Mattel, Inc. (MAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.