Deborah Mary Sophia, Uday Sampath and Uday Kumar

(Reuters) – Mattel Inc (NASDAQ.) On Wednesday, the company projected a full-year profit that was higher than its estimates. The company is confident strong consumer demand will enable it to weather severe supply chain disruptions. Its shares soared about 6% over extended trading.

Toymakers Mattel have raised their prices in an effort to combat the spiralling costs. This has helped toymakers like Mattel to increase sales without much consumer resistance.

Mattel’s holiday quarter revenue increased 10% to $1.80 Billion, surpassing analysts’ estimate of $1.66 Billion, in spite of factory closings and disruptions due to the Omicron coronavirus.

Ynon Kreiz, Mattel’s Chief Executive, stated to Reuters that even though supply chain issues and rising raw material prices show no sign of easing, he is confident the company has enough options for navigating the problems, which could include raising prices.

His statement stated that although supply chain disruptions are unlikely to disappear, he did expect them to manage any future disruptions.

This week was dominated by rivals Hasbro Inc (NASDAQ) warned it could see its profit margins drop this year due to the rising cost of supplies.

Mattel anticipates an adjusted profit between $1.42 and $1.48 per shares in 2022, exceeding estimates of $1.39, according to Refinitiv IIBES. On a constant currency basis, it forecasts net sales rising between 8% to 10%.

Also, from an earlier outlook for mid-single digit growth, the toymaker has raised its 2023 net-sales growth projection to high single figures.

Mattel’s lucrative rights to create dolls inspired by Disney Princesses will increase sales. Kreiz stated that he anticipates the line to bring in more revenue than the current level.

Hasbro, the Disney Princess licensing holder since 2016, averages about $250 million per year in revenues from the business.