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Dec 27, 2020

Hasbro Q4 2020 Earnings Report

Reported an increase in net revenues and adjusted operating profit, overcoming tough comparisons within the Partner Brand category and last year's theatrical releases.

Key Takeaways

Hasbro reported a 4% increase in net revenues to $1.72 billion for the fourth quarter of 2020. Adjusted operating profit increased 51% to $261.4 million, or 15.2% of revenues. Net earnings for the fourth quarter were $105.2 million, or $0.76 per diluted share.

Net revenues increased 4% to $1.72 billion, including a favorable $12.2 million impact of foreign exchange.

U.S. and Canada segment revenues up 16%; eOne segment revenues up 10%.

Revenues up 21% in Hasbro Gaming and 27% across the total gaming category, 20% in TV/Film/Entertainment and 7% in Franchise Brands.

Adjusted operating profit increased 51% to $261.4 million, or 15.2% of revenues, an expansion of 480 basis points year-over-year.

Total Revenue
$1.72B
Previous year: $1.43B
+20.7%
EPS
$1.27
Previous year: $1.24
+2.4%
Adjusted Operating Margin
15.2%
Previous year: 14.6%
+4.1%
Gross Profit
$947M
Previous year: $695M
+36.2%
Cash and Equivalents
$1.45B
Previous year: $4.58B
-68.4%
Free Cash Flow
$448M
Previous year: $221M
+103.2%
Total Assets
$10.8B
Previous year: $8.86B
+22.2%

Hasbro

Hasbro

Hasbro Revenue by Geographic Location

Forward Guidance

Hasbro is on strong footing to grow in 2021 as it continues to navigate through COVID-19 and leverage its unparalleled portfolio of brands and capabilities in consumer products, gaming and entertainment.

Positive Outlook

  • Strong retail, consumer and audience support for brands and content
  • Global point of sale increased last year, despite lockdowns and retail disruption
  • 2021 is starting with strong year-over-year momentum
  • Robust development slate of over 200 active scripted television and film projects including more than 30 Hasbro properties
  • Developing toy and game lines for valuable preschool brands PEPPA PIG and PJ MASKS to launch later this year.

Challenges Ahead

  • Navigating through COVID-19
  • COVID-19 related shutdowns globally at retail
  • COVID-19 related shutdowns in manufacturing
  • COVID-19 related shutdowns in live-action entertainment
  • Impact of COVID-19 on TV and Film revenues

Revenue & Expenses

Visualization of income flow from segment revenue to net income