Hasbro, Inc.
Hasbro is a global branded entertainment leader whose mission is to entertain and connect generations of fans through the wonder of storytelling and the exhilaration of play.
Having started in 1923 it now operates in 35 countries around the globe.
Employees: 6,800
Revenue: $5.86B for FY2022
HQ Location: Pawtucket, Rhode Island, U.S.
What they do:
Hasbro delivers engaging brand experiences for global audiences through gaming, consumer products, and entertainment, with a portfolio of iconic brands including MAGIC: THE GATHERING, DUNGEONS & DRAGONS, Hasbro Gaming, NERF, TRANSFORMERS, PLAY-DOH, and PEPPA PIG, as well as premier partner brands with companies such as Warner Bros. Discovery.
Their vision and priorities:
To entertain and connect generations of fans through the wonder of storytelling and exhilaration of play.
They strive to inspire a more inclusive, sustainable, and connected world, one game, one toy, and one story at a time.
Financial Goals
Deliver $250 - 300million in annualized run-rate cost savings by year-end 2025
In 2023, they anticipate their operational transformation will generate $150 million in run rate savings, money they are using to reinvest in the business and improve their profit profile.
Their focus for 2023 is on increasing their operating profit margins and growing their share in their focused categories.
Outlook for 2023:
They expect the toy and game market to continue the trends of Q4 into the first two to three quarters of the year, given the lingering effects of consumer inflation.
They see approx. $300 million of revenue headwinds from foreign exchange and exiting low-profit brands, licenses, and businesses as part of the fewer, bigger, better pillar of their strategy.
The progress they are making in their cost savings, operational excellence, and focusing on key brand initiatives are expected to drive continued operating margin expansion of 50 to 70 basis points.
Things to know right now
Organizational Redesign
They are also undertaking a significant organizational redesign that streamlines decision-making, puts the consumer at the center of everything they do, and aligns the company behind core competencies in games and toys. The company will eliminate approximately 15% of its global workforce in 2023. The reductions will start to take effect over the next few months.
Hasbro initiates Sales Process for eOne TV and Film Business
In connection with the Company’s strategic review process led by its new CEO, Chris Cocks, the Board of Directors has authorized a sale process for the part of its eOne TV and film business not directly supporting the Company’s Branded Entertainment strategy. Hasbro will maintain the capability to develop and produce animation, digital shorts, scripted TV, and theatrical films for audiences related to core Hasbro IP.
Deborah Thomas, Chief Financial Officer is to retire
Deborah will remain working at Hasbro until a successor has been found.
Eric Nyman, president, and COO is departing.
The Consumer Products business is currently reporting directly to the CEO.
Operational Excellence Programme
At the Company's investor day on October 4, 2022, Hasbro unveiled its Blueprint 2.0. This new consumer-centric approach focuses on fewer, bigger brands, expanded licensing, branded entertainment, and driving high-margin growth in games, digital, and direct-to-consumer. Guided by a new Blueprint with the consumer as its focus, the Company will focus investment on its most valuable franchises across toys, games, entertainment, and licensing. The Company is implementing an Operational Excellence program designed to deliver $250-$300 million in run-rate cost savings over the next three years, with $150 million expected in run-rate savings by year-end 2023.
Competitors
The Lego group
Mattel, Inc.
JAKKS Pacific
Spin Master
What does each business unit do?
Entertainment
Through eOne, its independent studio, Hasbro delivers world-class entertainment across all genres to audiences around the world, on all platforms. The company specializes in content development, acquisition, production, financing, distribution, and sales, sourcing from both Hasbro brands and original intellectual property.
Hasbro Consumer Products
Children, families, and fans can enjoy Hasbro brands through innovative consumer products across more than 100 categories, including toys, games, apparel, music, publishing, and location-based entertainment. Through Hasbro Pulse, passionate fans can access a curated selection of products and engaging content designed specifically for them.
Wizards and Digital Gaming
Wizards of the Coast, a subsidiary of Hasbro, is an award-winning developer and publisher of tabletop and digital games best known for MAGIC: THE GATHERING and DUNGEONS & DRAGONS. Through their internal development studios and world-class licensing partners, Wizards delivers franchise innovation across the Hasbro portfolio to create unforgettable play experiences on PC, mobile, and consoles.
Their financial calendar
Q1: January - March - Earnings April 19th
Q2: April - June - Earnings July 19th
Q3: July - September - Earnings 18th October
Q4: October - December - 16th February
Next Earnings Report:
Around April 2023
Snapshot of 2022:
Snapshot of Q4:
Positives from the last earnings report Q4(FY22)
Wizards of the Coast & Digital Gaming segment was up 22% compared to this quarter last year
MAGIC: THE GATHERING was up 40% compared to this quarter last year due to strong initial orders of Domanaria Remastered; and reorders of Warhammer 40,000
In Emerging brands, there was growth in Q4 for G.I.
Challenges from the last earnings report Q4(FY22)
Fourth quarter revenues of $1.68 billion, down 17% year-over-year, a decline of 14% on a constant currency basis.
Their Consumer Products segment was down 26% compared to this quarter last year. The teams are focused on reducing inventory at retail.
Their Entertainment segment was down 12% compared to this quarter last year due to the timing of deliveries.
The operating Profit Margin was down 7.5%. As Adjusted 16.0%. This was negatively impacted by activity to clear retail inventory and lower revenues
In Gaming, there were declines across the portfolio for the quarter
In TV/Film and Entertainment there was a decrease driven by fewer film deliveries and the timing of deliveries.
Positives from the end of 2022 report:
Wizards of the Coast & Digital Gaming segment was up 3% year on year.
Their Operating Profit Margin was up 7.0% for year-on-year reporting. As Adjusted 15.8% up 30 basis points. They are starting to drive significant costs savings through their Operational Excellence program
Partner Brands showed a full-year growth for Marvel, Star WarsTM, and Fortnite
Franchise brands grew in MAGIC: THE GATHERING, PEPPA PIG, and PLAYDOH for the full year
In Emerging brands, POWER RANGERS grew for the full year
Challenges from the end of 2022 report:
Full-year revenues of $5.86 billion were down 9% year-over-year, a decline of 6% on a constant currency basis.
Their Consumer Products segment was down 10% year on year
Their Entertainment segment was down 17%, year on year - down 12% due to the absent sale of the music business.
In Gaming, there were declines across the portfolio for the year.
In TV/Film and Entertainment there was a decrease driven by fewer film deliveries and the timing of deliveries.
