Montreal, Canada-based kids products manufacturer MEGA Brands enjoyed a 15% bump in Q1, 2007 net sales. The company reported net sales of US$90.1 million compared to US$78.6 million during the same period a year ago. Not surprisingly, toys was the strongest sector with revenues of US$54.1 million, up from US$42.5 million in Q1, 2006.

Marc Bertrand, president and CEO of MEGA Brands, says the positive reaction to Dora the Explorer and Diego licensed preschool products as well as Spider-Man 3 and Pirates of the Caribbean 3 lines helped boost results, sparking a 27% growth in international sales. Meanwhile, net sales of stationery and activity product lines were stable at US$36.0 million compared to US$36.1 million last year.

However, the company’s bottom line took a US$35.2 million hit when it decided to voluntarily recall Magnetix products that did not have pre-printed warning labels on their packaging. The move resulted in a profit of US$9.4 million compared to US$34.2 million over the same period last year.