Mega Brands (TSX:MB) is a Canadian toy manufacturing company based in Montreal, Quebec. It employs more than 1000 people (over half of its global work- force) at its Montreal facility. It also operates manufacturing plants in China and in Tennessee.
Recently, Mega Brands embarked on a three-year $30 million expansion of its Canadian facility, and has spent $20 million in the last two years to update its injection molding and counting equipment, with plans to spend another $10 million in 2013. These investments in capacity mean that Mega Brands is able to manufacture half of its toys in Montreal, double what it did a few years ago.
Mega Brands’ financial results indicate that its five-year plan to rebuild the business from near collapse is working well, and that it should reach its goal of delivering $500 million in annual sales by 2014. Reporting in U.S. dollars, the toy maker earned $4 million in the last quarter of 2012, up from $234 000 a year earlier. For the full year, the company’s profits doubled to $16.6 million or $1.01 per basic share as revenues grew 11.5 per cent to $420.3 million.
QUESTIONS
1. What was Mega Brands’ 2011 revenue?
2. Calculate the percentage increase in profit in the last quarter of 2012 from that of 2011.
3. Mega Brands’ net sales jumped 18 percent in the last quarter of 2012 from a base of $108 million. Calculate Mega Brands’ net sales for that period.
4. Is Mega Brands on track to achieve its goal of delivering $500 million in annual sales by 2014?