On Thursday 20 February Hasbro reported improved profitability and earnings growth in its financial results for the fourth quarter and full year 2024.
Chris Cocks, Hasbro’s CEO, said: “I’m proud of our team for delivering what we promised in 2024: we grew in games and licensing, stepped up our operational efficiency, and vastly improved the performance of our toy business. In 2025, we’re excited to bring a stellar lineup of toys and games to fans, expanding the reach of our IP through outstanding partnerships while we continue to focus on operational rigor andanticipating the future of play.”
Gina Goetter, Hasbro’s chief financial officer and chief operating officer, said: “The Hasbro team delivered our 2024 plan, significantly improved profitability and strengthened the balance sheet while continuing to invest in the business and return cash to shareholders. We are optimistic about growth opportunities in 2025 and beyond as we execute our strategy behind a powerful portfolio of brands.
Longer term plans through 2027 are covered in the Hasbro ‘Playing to Win’ strategy’ also announced on Thursday 20 February.
Full year 2024 highlights
- Full year Hasbro revenue declined 17% driven primarily by the eOne divestiture; excluding this impact, revenue declined 7%.
- Growth of 4% in the Wizards of the Coast and Digital Gaming segment was offset by declines in Consumer Products (-12%) and Entertainment (-88%, or -4%) excluding the eOne divestiture).
- Operating profit of $690 million and operating margin of 16.7% includes $149 million of costs for acquired intangible amortization, loss on disposal of business, and costs associated with the Company’s transformation.
- Adjusted operating profit of $839 million (+$362 million v 2023) and adjusted operating margin of 20.3% (+10.8 points v 2023), driven by the lap of 2023 non-recurring inventory costs, favourable business mix and cost savings.
- Reported net earnings of $2.75 per diluted share; adjusted net earnings of $4.01 per diluted share benefiting from improved operations, business mix and tax favourability.
- Delivered $370 million of gross cost savings and $227 million of net cost savings; Hasbro owned inventory down 17% v 2023.
Q4 2024 highlights
- Fourth quarter Hasbro revenue declined 15%; excluding the eOne divestiture, revenue declined 3%.
- Wizards of the Coast and Digital Gaming segment declined 7% due to the lap of The Lord of the Rings holiday set and Consumer Products declined 1% behind reduced volume, partially offset by growth in licensed consumer products.
- Operating profit of $60 million and operating margin of 5.4% includes $53 million of costs for acquired intangible amortization, loss on disposal of business and costs associated with the Company’s transformation.
- Adjusted operating profit of $113 million ($163 million vs. 2023) and adjusted operating margin of 10.2% (+14.1 points v 2023), driven by lap of Q4 2023 non-recurring items, favourable business mix and supply chain productivity.
2025 full year outlook
- Total Hasbro revenue up slightly in constant currency.
- Adjusted operating margin of 21%-22%.
- Adjusted EBITDA of $1.1 billion to $1.15 billion.
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.
About Hasbro
Hasbro is a leading games, IP and toy company whose mission is to create joy and community through the magic of play. With over 164 years of expertise, Hasbro delivers groundbreaking play experiences and reaches over 500 million kids, families and fans around the world, through physical and digital games, video games, toys, licensed consumer products, location-based entertainment, film, TV and more.
Through its franchise-first approach, Hasbro unlocks value from both new and legacy IP, including Magic: The Gathering, Dungeons & Dragons, Monopoly, Hasbro Games, Nerf, Transformers, Play-Doh and Peppa Pig, as well as premier partner brands. Powered by its portfolio of thousands of iconic marks and a diversified network of partners and subsidiary studios, Hasbro brings fans together wherever they are,from tabletop to screen.
