Funtastic secures major Toy Story 4 merchandise distribution rights
Written on the 4 May 2018 by David Simmons
Leading Australian toys distribution company Funtastic (ASX: FUN) has secured the rights to distribute the toys and entertainment products for the upcoming Toy Story 4 movie.
This is a major contract for the listed Australian company, with Funtastic expecting revenues in excess of $25 million during the 2019 and 2020 financial years to be generated from the contract.
The hugely anticipated release of Disney and Pixar's Toy Story 4 is scheduled for release in June 2019.
Funtastic's agreement with Thinkway Toys gives Funtastic the distribution rights for the toys and entertainment products in both the Australian and New Zealand markets.
Funtastic has previously distributed toys from major children's film releases including Star Wars, Avatar, How To Train Your Dragon, Ice Age, and Kung Fu Panda.
The company says it secured this latest contract after its "outstanding performance" distributing toys in 2010 from Toy Story 3.
"The decision by Thinkway to appoint Funtastic to market and merchandise Toy Story 4 is an endorsement that Funtastic has excellent capabilities in this area," says Funtastic CEO Steven Leighton.
"The company has worked tirelessly over the past 12 months to dramatically improve its financial performance and this decision is yet another step in Funtastic growing its credibility in the wider toy and licensing market."
"It will be a substantially profitable piece of business for us."
In March 2018 the company announced it recorded a first half profit of $35.4 million, representing a rare bit of positive news for the ailing Australian retail sector.
The listed company revealed its net profit of $35.4 million was up from a $4.3 million loss in the first-half last year.
Funtastic says the implementation of key strategic initiatives, such as a refinancing that reduced company debt by $35 million, and raising $8.2 million in equity last year, has paid off.
The company has struggled since 2013, hitting shareholders with multiple profit warnings mostly thanks to a number of disappointing toy launches and acquisitions.
Shareholders last year knocked back a proposal to delist the company from the ASX, in a bid by the board to save on listing fees.
The company pushed ahead with the debt restructure and in September undertook a capital raising of $8.2 million.
Business News Australia
Author: David Simmons