Amid the impact of the Covid-19 lockdown, Hasbro has reported strong demand for its products, notably in gaming.
Hasbro has reported financial results for the first quarter 2020. Net revenues for the first quarter 2020 were $1.11b versus $1.20b in 2019. Net loss for the first quarter 2020 was $69.6m, versus net earnings of $76.4m in 2019.
The company completed its acquisition of Entertainment One (eOne) at the beginning of the first quarter. The first quarter loss included $127.5m of acquisition-related expenses and $19.9m of purchased intangible amortisation associated with the eOne acquisition. Excluding these items, adjusted net earnings for the first quarter 2020 were $77.7m.
First quarter consumer demand for Hasbro Brands was said to be strong, led by games. Hasbro’s total gaming category revenues, including Magic: The Gathering, Monopoly and Hasbro Gaming, grew 40% and point of sale was up globally over 25%. Play-Doh also enjoyed a sales boost, increasing by mid-single digits.
During the first quarter, Hasbro launched Bring Home the Fun, a global initiative created to further the Company’s purpose to make the world a better place for children and their families. The initiative provides parents and caregivers resources to help keep kids occupied and engaged during extended time at home and indoors.
“The first quarter highlights what truly differentiates Hasbro: a global team that meets challenges creatively and nimbly; a diverse brand portfolio and retailer base; a strong financial foundation and balance sheet; and a commitment to our purpose of making the world a better place for children and their families,” said Brian Goldner, Hasbro’s chairman and chief executive officer. “Our teams worked tirelessly to ensure product could get to consumers while managing the health and safety of our employees and partners globally who are navigating a global supply chain and retail landscape impacted by Covid-19. Point of sale at retail was strong during the first quarter and continues to be up in April.”
“We’ve undertaken extensive scenario planning across the business and geographies as we plan for a re-opening of the economies globally,” continued Brian. “At the same time, we made significant progress on the integration of eOne and while near term much of the team’s production work has been delayed due to Covid-19, we are actively working together to unlock value from our brands and the eOne enterprise.”
Deborah Thomas, Hasbro’s chief financial officer, added: “Toward the end of the quarter, physical store closures and country-wide restrictions became more prevalent and entertainment productions shut down. As a result of Covid-19, we expect the second quarter to be more challenging than the first quarter of the year, with revenues and earnings down versus 2019. We are taking prudent steps to lower expenses and preserve capital while positioning to meet the seasonal peak demand periods of the business in the second half of the year.”
