Hasbro, Inc. (NASDAQ: HAS) has reported financial results for the fourth quarter and full year 2022. Full year revenues reached USD 5.86 Billion, a 9% decline year over year while operating profit reached USD 407.7 Million as adjusted operating profit amounted to USD 922.5 Million.
For the fourth quarter revenues reached USD 1.68 Billion, a 17% shortfall year over year. Operating loss was recorded at USD 125.7 Million as adjusted operating profit summed up to USD 269.2 Million.
“As we announced previously, our fourth quarter and full-year 2022 results came in below our expectations,” said Chris Cocks, Hasbro chief executive officer. “Despite this, we delivered our first billion-dollar brand in MAGIC: THE GATHERING and another record year at Wizards of the Coast and Digital Gaming, we grew key investment areas including licensing and direct to consumer, and we improved adjusted operating profit margin. We also reduced owned and retail inventory levels from the third quarter peak and we are working to reduce them further this year. Only a few months in, we have made meaningful progress in implementing Blueprint 2.0 with a heightened focus on innovation, data driven investment in key brands and disciplined cost management.”
“For 2023, we have a focused plan to grow share in our key categories and further improve our margins. We are capitalizing on a fantastic entertainment slate, including Dungeons & Dragons: Honor Among Thieves in March and exciting new product launches, while facing a challenging consumer discretionary environment and approximately $300 million in revenue headwinds from exited licenses, brands and markets as well as foreign exchange,” said Cocks. “Our strategy is centered on what makes our brands great – play, supported by compelling storytelling and disciplined brand management.”
“We are making significant headway in the execution of Blueprint 2.0 – including investing in higher return brands and projects, ending low return initiatives, modernizing our organization and lowering our cost base,” said Deborah Thomas, Hasbro chief financial officer. “We forecasted a challenging 2022, and that came to fruition. We also invested to grow, including the $146 million acquisition of D&D Beyond, which was earnings accretive in Q4, and returned $510 million to shareholders through dividends and share repurchase. Our current cash position adequately supports our business needs in the short-term, and operating cash flow is expected to nearly double in 2023.”