PAWTUCKET – Hasbro Inc. posted a $203.5 million profit in 2022, a 53% decline in net earnings from 2021, the company reported on Thursday.
Revenue totaled $5.86 billion for 2022, down 9% from the $6.4 billion in revenue reported a year earlier.
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Earnings per diluted share for the year were $1.46 per share, compared with $3.10 one year prior.
“As we announced previously, our fourth-quarter and full-year 2022 results came in below our expectations,” Hasbro CEO Chris Cocks said in a statement. “Despite this, we delivered our first billion-dollar brand in Magic: The Gathering and another record year at Wizards of the Coast and Digital Gaming; we grew key investment areas including licensing and direct to consumer; and we improved adjusted operating profit margin. We also reduced owned and retail inventory levels from the third-quarter peak and we are working to reduce them further this year.”
The company reported a fourth-quarter earnings loss of $128.9 million after posting a net income of $82.2 million profit in the fourth quarter of 2021. Revenue for the quarter was $1.68 billion, a 17% decrease year over year.
On Jan. 26, the Pawtucket-based toy maker announced that it was eliminating 1,000 jobs, about 15% of its global workforce. A “small percentage” of those layoffs will occur in Rhode Island, Hasbro said.
At the same time, it was announced that Eric Nyman, Hasbro president and chief operating officer, was leaving the company.
In the earning announcement on Thursday, Cooks highlighted steps the company has made to improve its financial performance in 2023.
“Only a few months in, we have made meaningful progress in implementing Blueprint 2.0 with a heightened focus on innovation, data-driven investment in key brands and disciplined cost management,” Cooks said.
Hasbro unveiled Blueprint 2.0 on Oct. 4 when it cut its full-year revenue forecast. The initiative focuses investment on its most valuable franchises across toys, games, entertainment and licensing. The toy company plans to significantly increase strategic investment in key brands, focusing on gaming, direct to consumer, franchise brands and licensing. Priority brands for merchandise investment include Peppa Pig, Transformers, Dungeons & Dragons, Magic: The Gathering, and My Little Pony.
Other earnings highlights, according to Hasbro:
- The company’s franchise brands generated $2.8 billion in revenue, a 4% decrease year over year.
- Partners brands revenue fell 9% from the previous year, to $1.05 billion.
- Hasbro gaming revenue decreased 13%, to $743.3 million.
- Emerging brands revenue fell 12% year over year, to $402.1 million.
- Hasbro’s TV, film and entertainment division also saw revenue decrease 17%, to $828.7 million.
Material from the Associated Press was used in this report
