July 27, 2012 / 11:45 AM / 6 years ago

Mega Brands profit jumps on higher toy sales in N. America

* Net sales up 13 pct

* N. America sales up 18 pct

July 27 (Reuters) - Canadian toy maker Mega Brands Inc’s quarterly profit rose five-fold on higher sales in North America.

Net profit rose to $1.6 million for the second quarter from $310,000 a year earlier.

Net sales for the company, which sells both its own brands and licensed toys, rose 13 percent to $94.5 million.

The company, which also operates in Europe and Australia, said sales in North America rose 18 percent.

Mega Brands said international sales were stable and that the growth was offset by foreign currency changes.

Toy sales were up 14 percent on higher demand for preschool and construction games. Sales of stationery and activities products were up 10 percent.

Mega Brands entered into an agreement with educational toy maker LeapFrog Enterprises Inc earlier this month to make stationery products to capitalize on the back-to-school season.

Shares of the Montreal-based company, which has a market value of C$106.7 million, closed at C$6.55 on Thursday on the Toronto Stock Exchange.

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