Brands
Mattel reports lower results for Q4-2015 and FY-2014; CEO Stockton takes the fall, quits
BENGALURU: Mattel, Inc (Mattel) reported a 6 per cent drop in worldwide sales from Q4-2014 (quarter ended 31 December 2014, current quarter) to US$ 1994 million from US$ 2113.2 million in Q4-2014. Worldwide sales for FY-2014 (year ended 31 December 2014) fell 7.3 per cent to US$ 6023.8 million from US$ 6484.9 million in FY-2013.
For the quarter, the company reported net income of US$ 149.9 million, or US$ 0.44 per share, which includes a negative impact of US$ 0.05 per share from MEGA Brands integration costs and a negative tax impact of US$ 0.03 per share, compared to last year’s fourth quarter net income of US$ 369.2 million, or US$ 1.07 per share. For the year, the Company reported net income of US$ 498.9 million, or US$ 1.45 per share, which includes a negative impact of US$ 0.16 per share from MEGA Brands acquisition and integration costs 3 and a tax benefit of US$ 0.13 per share, compared to last year’s net income of US$ 903.9 million, or US$ 2.58 per share, which included a tax benefit of US$0.09.
Bryan Stockton resigned from his position as chairman and CEO, as well as from the board of directors of Mattel on 26 January 2015. The company announced Christopher Sinclair’s appointment as Mattel chairman and Interim CEO on the same day.
“We are disappointed with our results but moving forward with a heightened sense of urgency to make the necessary changes to enhance our brand relevance and improve our execution,” said Sinclair. “Over the next few months, I will be focused on working with the management team to thoroughly evaluate the business in order to identify how we can improve our top-line performance and drive profitability. I am confident in our ability to revitalize our brands and our business and fully committed to delivering greater value for shareholders.”
Sales by Brand
Mattel Girls and Boys Brands
For the fourth quarter, worldwide gross sales for Mattel Girls & Boys Brands were US$ 1.23 billion, down 9 percent versus the prior year. Worldwide gross sales for the Barbie brand were down 12 per cent. Worldwide gross sales for Other Girls brands were down 3 per cent. Worldwide gross sales for the Wheels category, which includes the Hot Wheels and Matchbox brands, were up 2 per cent. Worldwide gross sales for the Entertainment business, which includes Radica and Games, were down 21 per cent.
For the year, worldwide gross sales for Mattel Girls & Boys Brands were US$ 3.90 billion, down 10 percent versus the prior year. Worldwide gross sales for the Barbie brand were down 16 per cent. Worldwide gross sales for Other Girls brands were down 2 per cent. Worldwide gross sales for the Wheels category, which includes the Hot Wheels and Matchbox brands, were up 1 percent. Worldwide gross sales for the Entertainment business, which includes Radica and Games, were down 20 per cent.
Fisher-Price Brands
Fourth quarter worldwide gross sales for Fisher-Price Brands, which includes the Fisher-Price Core, Fisher-Price Friends and Power Wheels brands, were US$ 578.9 million, down 11 percent versus the prior year. For the year, worldwide gross sales for Fisher-Price Brands were US$ 1.84 billion, down 13 per cent versus the prior year.
American Girl Brands
Fourth quarter gross sales for American Girl Brands, which offers American Girl-branded products directly to consumers, were US$ 318.3 million, down 4 percent versus the prior year. For the year, gross sales for American Girl Brands were US$ 620.7 million, down 2 percent versus the prior year.
Construction and Arts & Crafts Brands
Construction and Arts & Crafts Brands
Fourth quarter gross sales for Construction and Arts & Crafts Brands, which includes the MEGA BLOKS and RoseArt brands, were US$ 130.0 million. For the year, gross sales for Construction and Arts & Crafts Brands were US$ 315.0 million. Mattel acquired MEGA Brands Inc. on 30 April 2014.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
