Hasbro did big business last year with growth on all fronts as the company worked to mitigate supply chain and other pandemic-related challenges.
The play and entertainment company marked the official start of the toy industry earnings season by reporting a 17% spike in revenue for both the fourth quarter and all of 2021. The company says that all three of its operating and financial reporting segments — Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment — grew last year for a total of $6.42 billion in revenue, $2.01 billion of which came during Q4.
“The Hasbro team finished the year strong and delivered an exceptional full-year 2021, including another record revenue year for Wizards of the Coast [up 42%]; strong revenue growth for consumer products [up 9%]; and a robust, progressively more Hasbro brand-led, content slate to return to 2019 levels of deliveries for entertainment [up 27%],” says Hasbro’s Interim CEO Rich Stoddart. “Fans and consumers are increasingly interacting with brands in more ways than ever — our unique set of strategic assets across toys and games, entertainment, digital gaming, and licensing provide the foundation for maximizing the value of both our existing franchises and new IP.”
In the toy department, Transformers, My Little Pony, Play-Doh, NERF, and Magic the Gathering fueled growth in Hasbro’s franchise brands (+22%) segment. Marvel products, particularly those tied to the Spider-Man franchise, led growth in the partner brands segment (+8%) alongside strong sales for Fortnite and Ghostbusters merchandise. Dungeons & Dragons, Duelmasters, and Hero Quest propelled the Hasbro Gaming segment (+4%) for the year. Finally, the relaunched G.I. Joe joined Peppa Pig, PJ Masks, and Furreal Friends in driving a 29% spike in growth for the emerging brands segment while TV/Film revenue grew 24%,
“Throughout 2021, and finishing with focused execution in the fourth quarter, the Hasbro team did an excellent job in unprecedented circumstances,” says Deborah Thomas, Hasbro chief financial officer. “We delivered strong results, including 17% revenue growth for the year, higher operating profit margins, and $818 million in operating cash flow, while successfully navigating supply chain challenges, including higher Q4 input and freight costs across our business. This enabled us to continue investing in growth initiatives, pay off $1.08 billion in long-term debt in 2021, and continue supporting our dividend which the board increased 3% today.”
On a call with investors this morning, Thomas noted that Hasbro expects that the toy and game business will be slower this year, “possibly down,” as price increases begin to hit in Q2 and the industry runs up against tough comps from last year. Toys and games aside, the Hasbro team expects entertainment to grow.
“We do expect to see a more muted year for toys and games in 2022,” Thomas says. Additionally, she notes that the loss of the Disney Princess license to Mattel should not make a huge dent for Hasbro. “The Disney Princess license contributed about $250 million in sales each year, with a peak in 2019 following the release of Frozen 2,” she says. Looking beyond that, Thomas says that the company continues to have a growing and successful relationship with The Walt Disney Co. and that early samples for next year’s Indiana Jones product launch are looking good.
On Feb. 25, a changing of the guard will take place at Hasbro as Chris Cocks takes the helm as CEO following the recent passing of longtime CEO Brian Goldner. Cocks currently serves as president and chief operating officer at Wizards of the Coast.
“It has been an honor to lead this talented team over the past several months and I am confident that Chris Cocks will bring tremendous vision and passion while accelerating our performance-driven culture as he takes over as CEO,” Stoddart says.
Additionally, Hasbro Consumer Products’ Chief Consumer Officer and Chief Operating Officer Eric Nyman will be promoted to president and chief operating officer beginning Feb. 25.
