Games Workshop Ups Warhammer Prices by 3.5%
As announced on Tuesday, Games Workshop will raise Warhammer prices by 3-5% on June 10. This comes despite Games Workshop’s most recent financial report indicating higher gross and operating profit margins.
There is no indication which Warhammer 40k factions and Age of Sigmar armies will be affected, just that “some prices in Warhammer stores and on Warhammer.com” will increase. However, paints for miniatures, White Dwarf magazine, and Black Library books will remain unchanged.
“Prices for individual products will vary”, according to the Warhammer Community post, with an average rise of 3-5%. For example, one squad of Necron Warriors will increase from $50 to $52, £30 to £31.50, or €40 to €41, according to the article.
Games Workshop Business Is Doing Well
According to the company’s most recent interim financial report, there is a great financial outlook. The report published on January 9 provides an overview of the costs associated with the company’s ongoing operations. Even though it only covered the six-month period ending 26 November 2023.
This measure reflects the remaining revenue after the studio has paid for operations and taxes, but before covering the costs associated with making and delivering miniatures. Material costs, and factory and fuel costs, would reduce this margin.
In addition. the report highlighted that the firm’s gross margin improved from 69.4% to 69.4% in the last financial year, mostly due to lower provision charges and carriage costs. Margins in ‘production’ decreased only by 0.1%.
Notably, besides its miniature business, Games Workshop also has to pay for business operations outside of miniatures, such as marketing, customer service, IT support, legal counsel, etc. The percentage of its revenue left after paying all these pre-tax costs of the business is known as the operating profit margin.
Furthermore, the January 9 financial report shows this margin was 35.4% for the six months ending November 26. A gross margin of 69.4% and an operating profit margin of 35.4% are better than Games Workshop’s performance in the prior two years
Before 2021, Games Workshop did not fully separate licensing income from core income, so the measurements aren’t directly comparable. The core gross margin looks better in 2020-21, but licensing has very low cost of sales, which may affect the numbers.
Despite price increases, the Warhammer Community post states that “we’ve done our best to maintain prices”.
