NEWS

Hasbro posts strong fourth quarter results

Published on: 9th February 2021

The company generated over $1b in eCommerce revenue globally in 2020, as the Hasbro team demonstrated its resilience and tenacity.

Hasbro has reported its financial results for both the fourth quarter and full-year 2020. In the fourth quarter, global net revenues increased 4% to $1.72b.  Revenue in the US and Canada increased by +16%, while sales also increased in Europe. This was offset by declines in Latin America and Asia. Within the Hasbro portfolio, eOne saw its revenue grow by +10%, while revenue increased by +21% in Hasbro Gaming and 27% across the total gaming category, +20% in TV/Film/Entertainment and +7% in Franchise Brands

Full-Year 2020 results saw net revenue decrease by -8% to $5.47b, impacted by Covid-19 related shutdowns globally at retail, in manufacturing and in live-action entertainment. However, Hasbro generated over $1b in eCommerce revenue globally last year, an increase of 43%. Franchise brands Magic: The Gathering and Monopoly grew, as did revenue in Hasbro Gaming across many gaming brands, including Dungeons and Dragons. Hasbro products for Lucasfilm’s Star Wars and The Mandalorian also contributed to growth for the year.

Brian Goldner, Hasbro’s chairman and CEO commented: “In 2020, we lived our purpose of making the world a better place for all children and all families. In what was a most challenging year, the global Hasbro team fully demonstrated its resilience, tenacity, creativity, flexibility, and empathy. Our teams successfully drove demand for several product categories across our portfolio including our entire gaming portfolio, from Wizards of the Coast brands to face-to-face gaming. They found ways to reach the global consumer despite retail closures throughout the year, delivering over $1b in eCommerce revenues for the first time. We leveraged our global supply chain capabilities and our evolving geographic manufacturing supplier base to get products made and distributed. We integrated our acquisition of eOne and while live-action TV and film production was limited, we made substantial progress developing Hasbro IP for storytelling that we believe will lead to enhanced revenues and earnings power from Hasbro brands from multiple income streams. We developed toy and game lines for valuable pre-school brands Peppa Pig and PJ Masks to launch later this year. We concentrated on managing expenses and cash, growing adjusted operating profit margin and finishing the year with $1.45b in cash on our balance sheet.

Brian Goldner

“Importantly, we focused on our numerous communities, including our most important Hasbro community of employees worldwide and their families,” he continued. “This emphasis included engaging on critically important issues of racial equality and justice, and a company-wide re-commitment to diversity, inclusion and engagement. We are on strong footing to grow in 2021 as we continue to navigate through Covid-19 and leverage our unparalleled portfolio of brands and capabilities in consumer products, gaming and entertainment.”

Deborah Thomas, Hasbro’s chief financial officer, added: “Throughout 2020, the global Hasbro team did an excellent job executing in a challenging environment. In the fourth quarter, we grew revenues and adjusted operating profit, overcoming tough comparisons within the Partner Brand category and last year’s theatrical releases. Our focus on working capital and expense management delivered $976.3m in operating cash flow for the year, and as part of our commitment to paying down our debt, we repaid $123m of the debt that we raised to finance the eOne acquisition. We continue to see strong retail, consumer and audience support for our brands and content as we look to the coming year. Global point of sale increased last year, despite lockdowns and retail disruption, and 2021 is starting with strong year-over-year momentum.”

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