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Mar 31, 2024

Hasbro Q1 2024 Earnings Report

Hasbro reported improved profitability and EPS growth in Q1 2024.

Key Takeaways

Hasbro's Q1 2024 results showed a revenue decline of 24%, primarily due to the eOne film and television divestiture. Excluding this, revenue decreased by 9%. However, the company saw growth in the Wizards of the Coast and Digital Gaming segment (+7%) and Entertainment (+65%), which was offset by declines in Consumer Products (-21%). The company reported improved profitability and EPS growth.

Hasbro's Q1 revenue declined by 24%, but excluding the eOne divestiture, the decline was 9%.

Wizards of the Coast and Digital Gaming segment grew by 7%, while the Entertainment segment increased by 65%.

Adjusted operating profit increased by $101.4 million compared to the previous year, with an adjusted operating margin of 19.6%.

Hasbro's owned inventory decreased by 53% compared to the prior year.

Total Revenue
$757M
Previous year: $1B
-24.3%
EPS
$0.61
Previous year: $0.01
+6000.0%
Adjusted Operating Margin
19.6%
Previous year: 4.7%
+317.0%
Gross Profit
$528M
Previous year: $647M
-18.3%
Cash and Equivalents
$570M
Previous year: $386M
+47.6%
Free Cash Flow
$132M
Previous year: $35.6M
+270.8%
Total Assets
$6.2B
Previous year: $8.92B
-30.5%

Hasbro

Hasbro

Hasbro Revenue by Geographic Location

Forward Guidance

For the full year, the Company maintains annual guidance and continues to expect:

Positive Outlook

  • Consumer Products Segment revenue down 7% to 12% with 4 points of the decline coming from businesses shifting to an out-license model; Operating margin 4% to 6%.
  • Wizards of the Coast Segment revenue down 3% to 5%; Operating margin 38% to 40%.
  • Pro-Forma Entertainment segment revenue down $15 million; Adjusted operating margin of approximately 60%.
  • Total Hasbro, Inc Adjusted EBITDA of $925M to $1B.
  • Gross savings target to $750M by year end 2025.

Revenue & Expenses

Visualization of income flow from segment revenue to net income