Hasbro reported financial results for the third quarter 2024.
“Outperformance within our gaming and licensing businesses in the third quarter highlights the strength in two of our highest profit areas,” said Chris Cocks, Hasbro Chief Executive Officer. “Our key initiatives around digital, licensing and reinvigorating our product innovation are bearing fruit.”
“We continue to execute our turnaround efforts and are poised to finish the year with improved profitability, cash flow and operational rigor,” said Gina Goetter, Hasbro’s Chief Financial Officer.
Third Quarter 2024 Highlights
- Third quarter Hasbro, Inc. revenue declined 15%; excluding the eOne divestiture, revenue declined 9%. Wizards of the Coast and Digital Gaming segment declined 5% due to the lap of Baldur's Gate 3 and Consumer Products declined 10% behind softer volume.
- Operating profit of $302 million and operating margin of 23.6% includes $27 million of costs for intangible amortization associated with eOne and costs associated with the Company's transformation.
- Adjusted operating profit of $329 million (-$14 million vs. PY) and adjusted operating margin of 25.7% (+2.9 points vs. PY), driven by favorable business mix, supply chain productivity, and lower operating costs.
- Delivered approximately $87 million of net cost savings and approximately $177 million year to date; on track for full-year net savings commitment.
- Hasbro owned inventory down 39% versus prior year, including a 40% decline in Consumer Products inventory versus the third quarter 2023.
- Reported net earnings of $1.59 per diluted share; adjusted net earnings of $1.73 per diluted share benefiting from favorable business mix and improved profitability.
- Paid $98 million in cash dividends to shareholders in the quarter.
2024 Company Outlook
For the full year, the Company now expects:
- Consumer Products Segment revenue down 12% to 14%; Adjusted operating margin 4% to 6%.
- Wizards of the Coast and Digital Gaming Segment revenue flat to down 1%; Operating margin of approximately 42%.
- Pro-Forma Entertainment segment revenue down $15 million; Adjusted operating margin of approximately 60%.
- Total Hasbro Adjusted EBITDA of $975 million to $1.025 billion.
- Gross savings target of $750 million by year end 2025.
2024 Capital Allocation priorities:
- Invest in core business.
- Return cash to shareholders through the dividend.
- Continue to pay down debt and progress towards leverage target.
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