“Substantial improvement” in Spin Master’s China supply chain

Manufacturing hubs in China, Vietnam and India are said to be approaching normal levels, though earlier financial guidance has been scrapped

Written by Rhys Thomas

Posted 23.03.2020 | Business

“Substantial improvement” in Spin Master’s China supply chain thumbnail
Spin Master has reported a “substantial improvement” in its supply chain across Asia, with developments since early March bringing production close to normal levels.

Factory closures and the break down in raw material supply that stifled production throughout January and February have broadly come to an end. Production at the company’s manufacturing hubs in China, Vietnam and India, are said to have increased significantly since its earnings report on 4 March.

However, due to the current market disruptions and heightened uncertainty caused by the spread of Covid-19 key markets around the world, the company has withdrawn its earlier financial guidance.

"Since early March we have seen a substantial improvement in our Asian supply chain, particularly in China, as expected,” says Mark Segal, Spin Master's Executive Vice President and Chief Financial Officer.

"Our balance sheet remains strong, with cash on hand and committed credit lines available, which provides us with significant financial flexibility. Spin Master is known for its resiliency and entrepreneurial spirit. 

"We believe in our ability to withstand any issues and continue to succeed."

Spin Master will not issue further guidance in the near term, and says it is increasingly challenging to accurately calculate the “potential magnitude” of the coronavirus outbreak on sales.

An update will follow during the company’s Q1 2020 results on 6 May 2020.

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