Hasbro Reports Net Revenues Up 4% to $1.16 Billion

Hasbro Reports Net Revenues Up 4% to $1.16 Billion

Despite a leadership change and supply chain issues, Hasbro announced that revenue was up 4% year-over-year and beat the estimates.

"The Hasbro teams executed well in the first quarter, growing revenue across segments and positioning us to increase our profit outlook for the year. Based on our current plans, we now believe mid-single digit adjusted operating profit growth and a 16% adjusted operating profit margin is achievable on revenue growth of low-single digits," said Chris Cocks, Hasbro chief executive officer. "As I assumed the role of Hasbro CEO on February 25, we began a thorough review of our business with a theme of focus and scale. We are leaning into our strengths and greatest growth opportunities, including in gaming, multi-generational brands and direct to consumer.

"Hasbro has carefully assembled an unmatched portfolio of brand-building capabilities and valuable brands to drive profitable growth and long-term shareholder returns," said Cocks.

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According to the company's announcement on Tuesday morning:

Operating profit of $120.0 million, or 10.3% of revenues
Adjusted operating profit of $141.8 million, or 12.2% of revenues

Net earnings of $61.2 million, or $0.44 per diluted share
Adjusted net earnings of $79.4 million, or $0.57 per diluted share

EBITDA of $174.0 million
Adjusted EBITDA of $192.1 million

Strong cash position with quarter-end cash of $1.06 billion

"Our first-quarter results were in line with our plans, as the team continued to manage supply chain disruptions, positioning us to meet or exceed our outlook for the year," said Deborah Thomas, Hasbro chief financial officer. "As we discussed at year end, pricing increases went into effect in our consumer products business at the beginning of the second quarter and will help offset the higher input and freight costs in future quarters. Given our cash position and positive outlook, we are resuming our share repurchase program with a plan to repurchase $75 to $150 million this year and remain on target to reach our gross debt to adjusted EBITDA target of 2.0 to 2.5X during 2023."