Dream International profit falls 48% to $45.4m in H1 2021

It posted a profit of $87.4m in the same period last year.

Plush toy manufacturer, Dream International Limited, recorded a 48% decline in profit to $45.4m in the first half of 2021 from $87.4m in the same period last year.

Dream International’s revenue grew 20.2% to $1.96b in the first half from $1.63b in the first six months of 2020, on the back of higher revenues in the segments of plastic figures, plush stuffed toys, die-casting products, and tarpaulin.

Revenues from plastic figures rose 28.9% year-on-year (YoY) to $1b, which accounts for 52.7% of total revenue. Plush stuffed toys revenue increased 28.4% YoY to $558.6m, whilst die-casting segment revenue increased 25.5% to $94.8m. The tarpaulin segment rose 175.4% to $276.5m from the same period last year.

The cost of sales rose 24.7% to $1.7b from $1.37b in the first half of last year. Gross profit was maintained at $250.6m.

Distribution costs also rose to $45.6m from $35.8m, whilst administrative expenses also increased to $145.9m from $139.3m.

“We are pleased that our efforts in establishing a top-tier customer portfolio and two manufacturing bases, as well as our proactive approach to product diversification and sound financial position, have allowed us to withstand the challenges over the years,” Dream International Chair and CEO Kyoo Yoon Choi said.

“During the period, although the manufacturing industry still encountered challenges on the operation front, as material supply and logistics arrangements were still inevitably impacted, we are glad to see the group has achieved satisfactory performance,” he added. 

Choi added that they are “prudently optimistic” about the market’s prospect and expect their order volume to stabilize as the vaccination rate rises and lockdown restrictions relax.

“We have been focusing on optimising our production capacity and efficiency with existing production lines to offset the impact from the increase in raw material prices, whilst also being well-equipped to handle all customer requirements and bulk orders. As always, we will continue to consolidate our business portfolio and remain open to suitable business opportunities to navigate the bumpy road to recovery,” he added.

The group operated 21 plants as of 30 June, three in China, and 18 in Vietnam, with a utilization rate of 83%.