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Apr 02, 2023

Hasbro Q1 2023 Earnings Report

Hasbro's financial performance was ahead of expectations, positioning the company to meet full-year financial targets, driven by Wizards of the Coast and Digital Gaming's strong fan engagement and revenue growth in MAGIC: THE GATHERING.

Key Takeaways

Hasbro reported first quarter 2023 financial results, with revenues of $1.00 billion, a 14% year-over-year decline. MAGIC: THE GATHERING revenue increased by 16%. The company realized $35 million in Operational Excellence program cost savings and reaffirmed its full-year 2023 financial guidance.

First quarter revenues reached $1.00 billion, a 14% decrease compared to the previous year, or 13% on a constant currency basis.

MAGIC: THE GATHERING revenue increased by 16% year-over-year.

The company's first quarter operating profit was $17.9 million, with an adjusted operating profit of $47.2 million.

Hasbro achieved $35 million in cost savings through its Operational Excellence program year-to-date and reaffirms guidance for $150 million run-rate savings for full-year 2023.

Total Revenue
$1B
Previous year: $1.16B
-13.9%
EPS
$0.01
Previous year: $0.57
-98.2%
Adjusted Operating Margin
4.7%
Previous year: 12.2%
-61.5%
Gross Profit
$647M
Previous year: $740M
-12.6%
Cash and Equivalents
$386M
Previous year: $1.06B
-63.5%
Free Cash Flow
$35.6M
Previous year: $106M
-66.3%
Total Assets
$8.92B
Previous year: $9.52B
-6.3%

Hasbro

Hasbro

Hasbro Revenue by Geographic Location

Forward Guidance

The Company's full-year 2023 guidance remains: Revenue down low-single digits, Adjusted operating profit margin expansion of 50 to 70 basis points, Adjusted earnings per diluted share in the range of $4.45 to $4.55, Adjusted EBITDA approximately flat with 2022 Adjusted EBITDA, Operating cash flow in the range of $600 to $700 million.

Positive Outlook

  • Adjusted operating profit margin expansion of 50 to 70 basis points, excluding Operational Excellence charges and other non-GAAP items
  • Adjusted earnings per diluted share in the range of $4.45 to $4.55
  • Adjusted EBITDA approximately flat with 2022 Adjusted EBITDA
  • Operating cash flow in the range of $600 to $700 million

Challenges Ahead

  • Revenue down low-single digits
  • Expected flat to declining toy and game market in 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income