PAWTUCKET – Hasbro Inc. on Tuesday reported a profit of $61.2 million in the first quarter of 2022, a 47% year-over-year decline.
On a per-share basis, the company said it earned a profit of 44 cents. That compares to a profit of $116.2 million a year ago, or 84 cents per diluted share.
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This year’s first-quarter results did not meet Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 67 cents per share, according to The Associated Press.
The toymaker said it has been challenged by supply chain delays and higher business costs. Deborah Thomas, Hasbro chief financial officer, said “pricing increases went into effect in our consumer products business at the beginning of the second quarter and will help offset the higher input and freight costs in future quarters.”
Hasbro CEO Chris Cocks said the company “executed well in the first quarter, growing revenue across segments and positioning us to increase our profit outlook for the year. Based on our current plans, we now believe midsingle-digit adjusted operating profit growth and a 16% adjusted operating profit margin is achievable on revenue growth of low-single digits.”
Company revenue totaled $1.16 billion, a rise of 4% year over year:
- The company’s franchise brands portfolio, including Magic the Gathering, Play-Doh and Nerf, logged revenue of $543.1 million in the quarter, a rise of 4% year over year. The company noted top brand performances included Magic: The Gathering, My Little Pony and Peppa Pig.
- Partner brands portfolio revenue, including products for Star Wars, Marvel’s Spider Man and Marvel Studios content, totaled $206.5 million, a rise of 10% year over year. The portfolio was led by the Spider-Man franchise, including products in support of Marvel Studios’ “Spider-Man: No Way Home” and the new animated show Marvel’s “Spidey and His Amazing Friends,” plus Avengers franchise support with the upcoming Marvel Studios’ “Doctor Strange in the Multiverse of Madness.”
- Hasbro gaming revenue totaled $143.6 million, an increase of 5% year over year.
- TV/film/entertainment revenue totaled $193.5 million, even with the first quarter of 2021. The company noted music revenues increased 19%.
On April 14, Hasbro Inc. acquired D&D Beyond, a digital toolset for the toy company’s Dungeons & Dragons role-playing game, from Fandom Inc. for $146.3 million.
D&D Beyond, which has nearly 10 million registered users, will now be part of Hasbro’s Wizards of the Coast division, despite that branch being the focus of an ongoing proxy battle between Hasbro and activist investor Alta Fox Capital Management. Wizards of the Coast division also has Magic: The Gathering and other digital and tabletop franchises.
Alta Fox, which owns about 2.5% of Hasbro shares, has pushed for Hasbro to spin off Wizards of the Coast into a separate company.
(The Associated Press contributed to this report.)
