Mega Brands (MB.TO: Quote) posted a marginal dip in third-quarter profit, partly on higher costs, but the Canadian toy-maker said it expected signs of recovery across all its segments ahead of the crucial holiday season.

The Montreal-based company earned $17.1 million, or 51 cents a share, compared with $17.4 million, or 36 cents a share, a year ago.

Net sales for the company, which sells both its own brands and licensed toys, rose 4 percent to $133.3 million. Toy sales were up 4 percent.

Shares of the company closed at C$8.50 on Tuesday on the Toronto Stock Exchange.

(Reporting by Ankur Banerjee in Bangalore; Editing by Maju Samuel)