Toy company Funtastic has announced a 68 per cent increase to $9.3 million in net profit for the first half of the 2013 financial year compared with the corresponding period.
This figure includes a $3.3 million gain from settling the Lego earn-out early.
Earnings before interest, tax, depreciation and amortisation for the six months to January 31 also rose from $10.608 million to $14.745 million. Gross profit margins and base profitability also improved during the period.
The strong results mean Funtastic shareholders will receive their first dividend since 2006. It will be payable in May this year and is a fully franked dividend of 0.5 cents.
In a statement to the ASX, Funtastic highlighted the growth of its brands locally and internationally as well as key acquisitions for the positive results.
“The results for the first half demonstrate that Funtastic can deliver strong profits in a challenging retail environment,” says Stewart Downs, Funtastic chief executive.
“These results also highlight the fact that our Funtastic Brands business has become the growth engine of the group. Funtastic’s executive director, Nir Pizmony, is showing his extensive knowledge of the global marketplace to effectively drive the success of this international business.
“The growth in the Funtastic Brands business illustrates the strategic imperative management set itself to grow our own brands and IP. This business is now selling in over 40 countries and in fact, half of what the whole company sells, is now product we manufacture ourselves.
“This growth is being driven by the two key acquisitions made in FY12, the Pillow Pets brand and the licenses to manufacture and distribute certain Lego products. Pillow Pets has won us awards in Australia and Lego is performing strongly.
“We also have an incredible new product which we are launching in the second half which will ensure that the growth of our Brands business continues.”
