Hasbro Posts Revenue Growth in All Segments

Hasbro has reported net revenues of $1.16 billion in the first quarter of 2022, a 4 percent gain.

“The Hasbro teams executed well in the first quarter, growing revenue across segments and positioning us to increase our profit outlook for the year,” said Chris Cocks, Hasbro’s CEO. “Based on our current plans, we now believe mid-single-digit adjusted operating profit growth and a 16 percent adjusted operating profit margin is achievable on revenue growth of low-single digits.”

He continued, “As I assumed the role of Hasbro CEO on February 25, we began a thorough review of our business with a theme of focus and scale. We are leaning into our strengths and greatest growth opportunities, including in gaming, multi-generational brands and direct to consumer.

“Hasbro has carefully assembled an unmatched portfolio of brand-building capabilities and valuable brands to drive profitable growth and long-term shareholder returns,” added Cocks.

Revenues would be 6 percent without an unfavorable $17.4 million impact of foreign exchange. Hasbro posted adjusted operating profit of $141.8 million, or 12.2 percent of revenues. Adjusted net earnings were $79.4 million.

Entertainment segment revenue increased 4 percent (5 percent excluding a negative $1 million impact of foreign exchange). Entertainment segment revenue was up 22 percent, excluding $31.8 million of revenue from the music business, which was sold at the beginning of the third quarter last year. Film and TV revenues increased 14 percent, driven by deliveries of the television shows The Rookie for ABC and Graymail for Netflix, as well as the film Deepwater for Amazon and Hulu and several unscripted shows. Family Brands revenues were up 23 percent, driven by a multi-title renewal with Netflix for My Little Pony, Transformers and Power Rangers franchises, as well as revenue from the delivery of Transformers BotBots to Netflix in the quarter.

Consumer Products segment revenues increased 3 percent (or 5 percent excluding a negative $13.5 million impact of foreign exchange, $12 million of which was in Europe).

Wizards of the Coast and Digital Gaming segment revenues were up 9 percent (10 percent excluding a negative $2.9 million impact of foreign exchange).

“Our first-quarter results were in line with our plans, as the team continued to manage supply chain disruptions, positioning us to meet or exceed our outlook for the year,” said Deborah Thomas, Hasbro’s chief financial officer. “As we discussed at year-end, pricing increases went into effect in our consumer products business at the beginning of the second quarter and will help offset the higher input and freight costs in future quarters. Given our cash position and positive outlook, we are resuming our share repurchase program with a plan to repurchase $75 to $150 million this year and remain on target to reach our gross debt to adjusted EBITDA target of 2.0 to 2.5X during 2023.”