Funko has reported its consolidated financial results for the fourth quarter and fiscal year ended December 31st 2019, posting a 16% increase in net sales to $795.1m.
Net sales increased 16% to $795.1m; the improvement was primarily driven by an increase in the number of active properties and strength in the US and international markets. Gross profit increased 11% to $282.5m, which included a one-off charge of $16.8m related to the write-down of inventory.
In 2019, the number of active properties increased 20% to 804 from 672 in 2018, while net sales per active property decreased 3%. On a geographical basis, net sales in the United States increased 12% to $523.9m and net sales internationally increased 23% to $271.2m, driven primarily by 32% growth in Europe.
CEO Brian Mariotti commented: “Full year top line growth of 16% was driven by the underlying strength of Pop! Vinyl, growth in key geographic markets and the introduction of new products and categories. Although we closed the year with a difficult fourth quarter, we remain confident in the underlying strength of our business model and have a number of initiatives underway to drive growth in 2020. We have an exceptional line-up of games, toys and figures coming to market in the second half, unique evergreen retail programs and new products and partnerships in underpenetrated genres, including anime, sports and music. Funko’s deep roots and expertise in all things pop culture provide us with a strong foundation for growth and expansion. As the proliferation of content continues to occur across pop culture, we believe Funko will be at the forefront. We are focused on building for scale – ensuring we have the tools and talent in place to drive a high level of execution, support our growth and deliver long-term shareholder value.”
Looking ahead to 2020, CFO Jennifer Fall Jung stated: “In 2019, we generated strong operating cash flow and strengthened our balance sheet, providing us with the financial flexibility to invest in our infrastructure and strategic growth opportunities. Looking at 2020, we expect to achieve top line growth in the range of 6-9%, and adjusted EBITDA margins of approximately 14%, which includes our current assumptions regarding the impact of the coronavirus crisis.”