Spin Master Corp. says it swung to a loss in the fourth quarter in part because of supply chain issues at its U.S. distribution centre, and it expects further supply impacts this year because of the novel coronavirus.
The Toronto-based toy company, which reports in U.S. dollars, says it lost $17.2 million for the three months ending Dec. 31, compared with earnings of $11.4 million a year earlier. The adjusted loss was 7.8 million or eight cents per share, compared with an adjusted profit of $6.2 million or six cents per share in the prior year.
The loss came despite revenue coming in at $473.5 million in the quarter, up from $414.3 million in the same quarter a year earlier.
Analysts had expected an adjusted net loss of $11.3 million or 12 cents per share on revenue of $481.6 million, according to financial markets data firm Refinitiv.
Spin Master says it is monitoring the situation around the COVID-19 virus closely, as about 60 per cent of its goods are produced in China and it is not yet able to produce at full capacity.
The company says it expects that the evolving conditions “will have an impact on our global operations,” and has initiated a broad range of actions to attempt to mitigate disruptions.
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.