Strong showing for Hasbro in full-year financials
Revenues up across majority of major segments as Transformers, Nerf and My Little Pony drive sales
Net revenues for Hasbro's full-year rose four per cent to $5.21bn in 2017, driven by strong performances from Transformers, Nerf, Monopoly and My Little Pony. The performance gave Hasbro operating profits of 15.6 per cent - a good showing despite being hit with US tax reform charges to the tune of $269.5m.
It was a strong year across the global toy giant's major segments, with its domestic US and Canada business up five per cent, international business seeing growth of two per cent, and its entertainment and licensing segment soaring to 8 per cent growth.
Focusing in on toys, Hasbro's own franchise brands and Hasbro Gaming both saw 10 per cent upswings in revenue, but it was a different story for partner brands. A weaker than expected outcome for Star Wars and Yo-Kai Watch, saw revenues in this category dip 10 per cent, although Beyblade, Marvel and Sesame Street all saw growth.
Looking to 2018, the Baby Alive and Furreal Friends brands, under the umbrella of emerging brands, look set to continue to drive growth, with that category up two per cent.
“Hasbro’s global team’s execution of our Brand Blueprint drove revenue gains in Franchise Brands, Hasbro Gaming and Emerging Brands, including immersive brand experiences across consumer products and digital gaming,” said Brian Goldner, Hasbro’s Chairman and Chief Executive Officer. “Our strong performance ranked Hasbro number one across the G11 markets for the full-year 2017*. In the fourth quarter, Hasbro Franchise Brand revenues increased 11%. However, overall consumer demand slowed in November and December both for the industry and for Hasbro. A decline in Partner Brands and Europe revenues resulted in us not meeting our fourth quarter revenue expectations. Looking ahead, our innovative lines are supported by robust storytelling and digital initiatives that position us well for 2018 and beyond.”