BUSINESS

Mega Brands profits jump to US$1.6 million as sales rise 13 per cent

07/27/2012 11:31 EDT | Updated 09/26/2012 05:12 EDT
MONTREAL - Mega Brands (TSX:MB) says second-quarter profit grew to US$1.6 million, or about five times larger than a year earlier, as its toy sales increased.

The Montreal-based toymaker says the earnings were equal to 10 cents per share, which is up from $310,000, or two cents per share a year earlier.

Net sales increased 13 per cent to $94.5 million compared to $83.9 million in the comparable three month period ended June 30 last year.

The higher demand was fueled by sales growth in the categories "preschool" and "boys" in the toy sector of construction.

The company says sales in North America were up 18 per cent and were "stable" in its international division with growth offset by unfavourable currency exchange rates.

''Our second-quarter results demonstrate solid growth in our business as we head into the peak selling period of the year,'' said president and CEO Marc Bertrand in a release.

''The key metrics in our business are positive and we are well-positioned for a strong finish to the year.''

Mega Brands designs, manufactures and markets toys and stationery products in more than 100 countries.

It has some 1,300 employees with offices, manufacturing facilities and distribution centres in 14 countries.