Boys toys help lead Hasbro to 45% increase in profit in 2014

BOYS TOY sales helped fuel sales growth for Hasbro Inc. in 2014, with an increase of 45 percent in profit for the year. / COURTESY HASBRO
BOYS TOY sales helped fuel sales growth for Hasbro Inc. in 2014, with an increase of 45 percent in profit for the year. / COURTESY HASBRO

PAWTUCKET – Boys toy sales helped fuel sales growth for Hasbro Inc. in 2014, with an increase of 45 percent in profit for the year.

The toymaker reported full-year and fourth-quarter earnings Monday, posting net income in 2014 of $415.9 million, or $3.20 per diluted share, a 45 percent increase over $286.2 million, or $2.17 per diluted share, last year.

In the fourth quarter, net income was $169.9 million, or $1.34 per diluted share, a 31 percent increase compared with $129.8 million, or 98 cents per diluted share, in the 2013 fourth quarter.

Revenue in 2014 increased 5 percent to $4.28 billion compared with $4.08 billion in 2013. For the quarter, revenue increased 1 percent to $1.3 billion compared with $1.28 billion a year ago.

- Advertisement -

Hasbro President and CEO Brian D. Goldner said that 2014 was “a good year for Hasbro.”

“We grew revenues, profitability and returned significant capital to our shareholders,” he said in a statement.

“These results highlight the power of building innovative brand experiences based firmly in global consumer insights and supported by compelling stories. Investments in our brand blueprint are unlocking value in our brand portfolio, and we begin 2015 well positioned to capitalize on our efforts in ‘Creating the World’s Best Play Experiences’,” Goldner continued.
Deborah Thomas, Hasbro’s chief financial officer, said that “the underlying strength of Hasbro’s brands and financials enabled us to grow revenues and earnings despite a significant fourth-quarter negative impact from foreign exchange. In 2014, foreign exchange had a $93 million negative impact on revenues and approximately a $25 million negative impact on net earnings. Despite this, our focus on profitable growth delivered our highest operating profit margin in recent years, while generating $454 million in operating cash flow. In 2015, we have tremendous brand initiatives and entertainment upon which to capitalize, but anticipate foreign exchange will remain a significant headwind throughout the year.”

Excluding the negative $93.4 million impact from foreign exchange, 2014 revenue grew 7 percent, the company said.

The boys category, fueled by growth in Transformers, Nerf and Marvel products, led the four product categories, with 20 percent growth over the year, and 21 percent growth in the fourth quarter. For the full year, boys category revenue was $1.48 billion. The girls category had 2 percent growth over the year to $1.02 billion. My Little Pony, My Little Pony Equestria Girls, Nerf Rebelle and Play-Doh Dohvinci offset Furby declines. Fourth-quarter sales slid 10 percent to $312.4 million.

The games and preschool categories each had sales declines of 4 percent for the year, to $1.26 billion and $510.8 million, respectively. While Monopoly, Simon and Game of Life sales increased, declines were reported in Twister, Angry Birds and Duel Masters games. Play-Doh and Transformers Rescue Bots helped the preschool category, but sales lagged in core Sesame Street and Playskool products, the company said.

Hasbro’s board of directors announced a quarterly cash dividend of 46 cents per common share, an increase of 7 percent compared with the previous quarterly dividend of 43 cents per common share. It will be payable May 15 to shareholders of record as of May 1.

No posts to display