Mattel, the world’s largest toymaker, said that the recall of more than 21m toys because of design flaws and potentially dangerous levels of lead paint in products made in China had hit profits and sales in its third quarter.

The maker of Barbie dolls and Fisher-Price toys revealed it had been hit by charges of about $40m because of the company’s product recalls, as sales were driven down $30-$50m by disruptions to its supply chain and revoked import licenses.