Tonies Reports 31% Revenue Growth in Strong FY2023 Results

Strong Growth Exceeds Guidance

Tonies reported preliminary fiscal year 2023 revenue of €630 million, a significant 31% year-over-year increase. This performance surpasses the company's guidance, which projected growth of over 25% in constant currency.

Regional Performance Highlights

Growth was particularly strong in North America, with sales increasing by 40% in constant currency. The region now represents 44% of total revenue, making it the company's largest market. The mature DACH region saw 16% growth, while Rest of World markets surged by 64%. The fourth quarter was robust, accounting for half of the annual revenue.

Financial Outlook and Market Impact

Management anticipates the adjusted EBITDA margin will reach the upper end of guidance at approximately 8.5%. This improvement is attributed to efficiency gains and a favorable product mix. Following the results, Kepler Cheuvreux maintained its Buy rating on the stock with a price target of €11.50.

Summary and Next Steps

Tonies' strong performance, driven by product innovation like the Toniebox 2 and holiday season sales, signals continued momentum. Investors will be watching for the full detailed results, which are scheduled for release on April 14.

FAQ

Q: What was the main driver of Tonies' revenue growth?
A: The primary drivers were strong sales in North America, which grew 40%, and a successful fourth quarter during the holiday season.

Q: What is the company's profitability outlook?
A: Tonies expects its adjusted EBITDA margin to be around 8.5%, at the upper end of its guidance.

Source: Investing.com