The manufacturer of Playmobil figures was unable to benefit from record demand for toys last year.

The Horst Brandstätter Group reports a decline in sales of 2.8 percent to 736 million euros for the financial year that ended in March.

The Lechuza division, which produces planters from the Playmobil figure raw material, grew by 16 percent, with the core toy business suffering a 4.3 percent drop in sales more than the group's figures suggest.

The market researcher NPD Group had determined for 2021 that the global toy market grew by 8.5 percent, the German by 4 percent.

Timo Kotowski

Editor in Business.

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The Brandstätter Group cites delivery bottlenecks for packaging, electronic parts and tools as reasons for the decline in sales – as well as increased costs for plastics and logistics, which are more likely to have had an impact on profits.

"The costs for raw materials have doubled in the last two years - and the trend is still rising - and, together with the cost increases for energy and freight, are putting a considerable strain on our result," boss Steffen Höpfner is quoted as saying.

The company does not disclose profit figures.

Higher prices, on the other hand, are unlikely to have prevented Playmobil purchases.

The company complains that "adequate price increases" were "difficult to implement", which put pressure on margins.

At the toy fair at the end of January, other manufacturers reported record sales and falling profits at the same time.

While competitors also have difficulties with supplies from the Far East, Playmobil products - as the company itself emphasizes in its announcement - are manufactured in Europe.

The Brandstätter Group apparently sees the pandemic as a reason for business development.

“Corona has changed the leisure activities of children drastically.

The time that children have spent with digital media has increased significantly," Roger Balser, head of the Playmobil division, is quoted as saying.

"Experts consider this dangerous."

The company is sending skeptical signals for the new fiscal year.

The global economy has never seen a combination of pandemic, war in Ukraine, scarce raw materials, supply chain problems and inflation.

The current situation shows how important the ongoing transformation process in the group is.