Hasbro, Inc. (HAS): history, ownership, mission, how it works & makes money

A Brief History of Hasbro, Inc.

Hasbro, Inc. has a rich history as one of the leading toy manufacturers globally, with its roots tracing back to 1923. Originally known as Hassenfeld Brothers, the company began as a textile remnant business before transitioning to toy production in the 1940s. By the 1960s, Hasbro had introduced iconic brands such as G.I. Joe and Monopoly, establishing itself as a household name.

Financial Performance Overview

As of September 29, 2024, Hasbro reported net revenues of $1,281.3 million for the third quarter, down from $1,503.4 million in the same period in 2023, marking a 15% decline. The year-to-date results for the first nine months of 2024 showed a decrease in revenues to $3,033.9 million, compared to $3,714.4 million for the nine months ending October 1, 2023, representing an 18% decrease.

Segment Performance

The decline in revenues was driven by significant drops in the Entertainment segment, which fell by 86% due to the divestiture of the eOne Film and TV business. The Consumer Products segment also saw a 10% decrease, reflecting broader industry trends and a shift in product mix.

Profitability Metrics

In terms of profitability, Hasbro reported an operating profit of $301.9 million for Q3 2024, contrasting with a loss of $169.5 million in Q3 2023. The net earnings attributable to Hasbro, Inc. reached $223.2 million in Q3 2024, compared to a loss of $171.1 million in Q3 2023. This reflects a significant turnaround in operational performance.

Debt and Financial Position

As of September 29, 2024, Hasbro's total long-term debt stood at $4.0 billion, with $500 million classified as current. The company issued $500 million in senior unsecured debt securities in May 2024, with a fixed interest rate of 6.05% due in 2034. Cash and cash equivalents, including restricted cash, totaled $70.4 million at the same date.

Shareholder Equity

As of September 29, 2024, total shareholders' equity for Hasbro was reported at $1,309.7 million, down from $2,223.2 million in the previous year. The balance sheet reflects the impacts of operational and market challenges faced during the year.

In summary, Hasbro's financial performance in 2024 has been impacted by significant revenue declines in key segments and operational challenges, but it has shown resilience in profitability metrics amidst a challenging market landscape.

A Who Owns Hasbro, Inc. (HAS)

Major Shareholders

As of 2024, Hasbro, Inc. (HAS) is publicly traded on the NASDAQ stock exchange. The ownership of Hasbro is distributed among institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders of Hasbro, Inc. as of the latest available data:

Top Institutional Shareholders

The top institutional shareholders of Hasbro, Inc. are significant players in the investment landscape. The following table lists the largest institutional shareholders as of 2024:

Recent Changes in Ownership

In recent months, Hasbro's ownership structure has seen some changes, particularly due to the sale of its eOne Film and TV business. This strategic move has impacted overall shareholder value and institutional interest:

• On December 27, 2023, Hasbro sold its eOne Film and TV business to Lionsgate for $375.0 million.
• This sale led to a significant restructuring of assets and liabilities, which may have influenced institutional investment strategies.
• As of September 29, 2024, Hasbro recorded net revenues of $1,281.3 million for the third quarter, reflecting a decline from previous periods.

Stock Performance

Hasbro's stock performance has been influenced by various market factors, including its revenue trends and ownership changes. The following table provides a snapshot of Hasbro's stock performance metrics in 2024:

Future Outlook

Looking ahead, Hasbro's ownership dynamics may continue to evolve as the company adapts to market conditions and investor sentiment. The impact of strategic decisions, such as the sale of non-core assets and restructuring efforts, will likely play a significant role in shaping its shareholder base and stock performance in the coming years.

Hasbro, Inc. (HAS) Mission Statement

Hasbro, Inc. ("Hasbro") is a game, toy, and intellectual property company whose mission is to entertain and connect generations of fans through the exhilaration of play and the wonder of storytelling. The company emphasizes Creating Magic Through Play by delivering engaging brand experiences for global audiences across gaming, consumer products, and entertainment. Hasbro's portfolio includes iconic brands such as MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, and PEPPA PIG, along with premier partner brands.

Guided by its purpose, Hasbro aims to create joy and community for all people around the world, one game, one toy, and one story at a time. The company has been consistently recognized for its corporate citizenship, including being named one of the 100 Best Corporate Citizens by 3BL Media for the past decade.

Financial Performance Overview

As of September 29, 2024, Hasbro reported a decline in net revenues for the third quarter, totaling $1,281.3 million, down 15% from $1,503.4 million in the same period in 2023. This decline was primarily driven by a significant decrease in the Entertainment segment following the sale of the eOne Film and TV business.

Year-to-Date Financial Performance

For the first nine months of 2024, Hasbro's net revenues decreased to $3,033.9 million, reflecting an 18% decline from $3,714.4 million in 2023. The decrease was primarily attributed to:

• A $423.5 million (87%) decline in the Entertainment segment.
• A $334.9 million (16%) decline in the Consumer Products segment.
• A partial offset from a $77.9 million (7%) increase in the Wizards of the Coast and Digital Gaming segment.

Operating profit for the first nine months of 2024 amounted to $630.2 million, compared to an operating loss of ($340.2 million) in the same period in 2023.

Strategic Initiatives and Corporate Citizenship

Hasbro's recent strategic initiatives include a multi-year transformation aimed at focusing on fewer, bigger, and better brands, which has led to improved supply chain efficiencies and inventory management. The company has also made significant leadership transitions and emphasized investment in its most valuable franchises across multiple sectors, including games, toys, and entertainment.

In alignment with its mission, Hasbro continues to engage in corporate social responsibility initiatives, contributing to community development and sustainability through its various programs and practices.

How Hasbro, Inc. (HAS) Works

Overview of Financial Performance

As of the third quarter of 2024, Hasbro, Inc. reported a net revenue of $1,281.3 million, a decline of 15% from $1,503.4 million in the third quarter of 2023. For the first nine months of 2024, net revenues decreased 18% to $3,033.9 million compared to $3,714.4 million for the same period in 2023.

Segment Performance

The revenue decline is attributed primarily to significant downturns in the Entertainment segment and Consumer Products segment, offset slightly by an increase in the Wizards of the Coast and Digital Gaming segment.

Operating Profit and Costs

For the third quarter of 2024, Hasbro reported an operating profit of $301.9 million, compared to a loss of $169.5 million in the same quarter of the previous year. The operating profit margin improved due to cost savings initiatives and a favorable product mix.

Net Earnings and Earnings Per Share

Net earnings attributable to Hasbro, Inc. for Q3 2024 were $223.2 million, translating to basic and diluted earnings per share of $1.60 and $1.59, respectively. This marks a significant recovery from a net loss of $171.1 million in Q3 2023.

Cash Flow and Liquidity

Hasbro's cash and cash equivalents at the end of Q3 2024 totaled $696.1 million, up from $185.5 million at the end of Q3 2023. The company generated net cash from operating activities of $587.6 million in the first nine months of 2024.

Balance Sheet Highlights

As of September 29, 2024, Hasbro reported total assets of $7,229.9 million and total liabilities of $5,920.2 million, resulting in total shareholders' equity of $1,309.7 million.

Market Trends and Challenges

Hasbro faces challenges primarily from declines in its Entertainment segment due to the sale of the eOne Film and TV business, which has significantly affected revenue streams. Additionally, the company is navigating broader industry trends and shifts in consumer preferences.

How Hasbro, Inc. (HAS) Makes Money

Revenue Streams

As of 2024, Hasbro, Inc. generates revenue through various segments, primarily consisting of Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment. The following table illustrates the net revenues across these segments for the first nine months of 2024 compared to the same period in 2023:

Consumer Products Segment

Within the Consumer Products segment, net revenues decreased primarily due to a decline in sales of key brands like NERF, TRANSFORMERS, STAR WARS, and MARVEL. The decrease was partially offset by revenue from the reintroduced FURBY brand and licensing revenue from MY LITTLE PONY trading cards. The segment's operating profit was $64.8 million, or 3.6% of net revenues, for the first nine months of 2024.

Wizards of the Coast and Digital Gaming Segment

This segment recorded a net revenue increase of 7% to $1,172.3 million, driven by higher digital licensing of the DUNGEONS & DRAGONS-based video game, Baldur's Gate 3, along with strong sales in MAGIC: THE GATHERING. The operating profit for this segment was $551.1 million, representing a 30% increase compared to the previous year.

Entertainment Segment

The Entertainment segment saw a significant decline in net revenues, dropping to $64.0 million from $487.5 million in the prior year, largely due to the sale of the eOne Film and TV business. This segment reported an operating profit of $14.6 million.

Geographic Revenue Distribution

The following table shows the net revenues from the Consumer Products segment by geographic region for the nine months ending September 29, 2024:

Cost Structure

Hasbro's total costs and expenses for the first nine months of 2024 were $2,403.7 million, down from $4,054.6 million in the prior year. The cost of sales decreased to $820.8 million, or 27.1% of net revenues. The decrease was attributed to lower sales volumes and improved supply chain efficiencies.

Profitability Metrics

For the first nine months of 2024, Hasbro reported a net profit of $419.9 million, translating to a net earnings per share of $3.01. The following table summarizes the earnings metrics:

Conclusion on Revenue Generation

Hasbro, Inc. continues to generate revenue through a diversified portfolio across various segments. Despite challenges in the Consumer Products and Entertainment segments, the growth in the Wizards of the Coast and Digital Gaming segment has provided a positive offset, demonstrating the company's adaptability in a changing market landscape.

Article updated on 8 Nov 2024

Resources:

• Hasbro, Inc. (HAS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hasbro, Inc. (HAS)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Hasbro, Inc. (HAS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.