Hasbro posts $253.2M profit in Q3

HASBRO INC. posted a $428.7 million profit in 2021, a 93% increase from 2020. COURTESY HASBRO INC.
HASBRO INC. posted a $428.7 million profit in 2021, a 93% increase from 2020. COURTESY HASBRO INC.

PAWTUCKET – Hasbro Inc. earned a $253.2 million profit in the third quarter, a 15% rise year over year, the company reported Tuesday.

Earnings per diluted share were $1.83, compared with $1.61 one year prior.

“The Hasbro team performed at an extremely high level to deliver double-digit revenue growth, strong earnings and cash flow for the quarter, driven by our diversified business model,” said Rich Stoddart, interim chief executive officer of Hasbro. “While we mourn the passing of our longtime leader and friend Brian Goldner, our performance is a testament to the power and potential of the brand blueprint strategy he architected.”

Goldner, the longtime leader of Hasbro, died earlier this month at the age of 58.

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Company revenue totaled $1.9 billion in the quarter, a rise of 11% year over year. The company attributed the increase to continued strong performance from its Wizards of the Coast and digital gaming segment and a recovery in its entertainment segment, offset by a slight decline in consumer products revenue.

“Entertainment revenues were up significantly, as the business returns to pre-pandemic levels, and the momentum of the Wizards of the Coast business continued,” Stoddart said. “These performances more than overcame a small decline in our consumer product shipments amidst global supply chain challenges in the quarter. Our teams continue to work around the clock to secure transport for our goods to meet the robust demand for Hasbro brands.”

  • The company’s consumer products segment reported revenue of $1.3 billion, a decline of 3% year over year. Segment profit totaled $210.4 million, a decline from $226.2 million one year prior.
  • The company’s Wizards of the Coast and digital gaming segment reported a revenue of $360.2 million, a rise of 32% year over year. Segment profit totaled $159.4 million, a rise from $141.6 million one year prior.
  • The company’s entertainment segment reported revenue of $371.1 million, a rise of 76% year over year. The segment reported a $22.4 million profit in the quarter after posting a $28.3 million loss in the third quarter of 2020.

The company said it has been working against supply chain challenges heading into the holiday season. In the third quarter, the company said that roughly $100 million of orders of the company’s consumer products were not filled in the quarter due to supply chain disruption, including limited capacity and port congestion. However, Hasbro said that a majority of those orders were fulfilled early in the fourth quarter. The segment was also impacted by lower revenue due to shipping challenges and higher freight costs.

Entertainment segment revenue was said to be driven by the delivery of television shows such as Yellowjackets and The Rookies, as well as sales of Fear the Walking Dead among other other programs, as well as film revenue from the movies Come from Away and Finch. The company also said the quarter included new content deals for Peppa Pig and PJ Masks, as well as the delivery of My Little Pony: The Next Generation to Netflix.

Wizards of the Coast and digital gaming performance was driven by tabletop and digital gaming revenue for Magic The Gathering and Dungeons and Dragons. Profit in the segment was offset by higher expenses to support new game launches.

“Our established and experienced leadership team continues to execute on the vision we all share,” said Deborah Thomas, Hasbro’s chief financial officer. “We are also working tirelessly to ensure product for the holiday, and are pleased that, through today, we have delivered much of what was delayed in the third quarter despite continued supply chain challenges.

“Given the strength across our diversified business model, for the full year we continue to target double-digit revenue growth, currently expected in the range of 13% to 16%, and operating margins in line with last year’s adjusted level of approximately 15%,” she added. “We have orders to support the high end of the revenue growth range, but there are supply chain factors out of our control which could impact our ability to fully achieve the upside.”

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