Hasbro reports Q1 2015 net revenues increase

Revenues for franchise brands, boys and pre-school categories all increased.
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Hasbro has reported that net revenues for the first quarter 2015 increased five per cent to $713.5 million versus $679.5 million in 2014.

Excluding a negative $62.6 million impact from foreign exchange, revenues increased 14 per cent and net earnings for Q1 2015 were $26.7 million compared to $32.1 million in 2014.

First quarter 2015 net revenues in the boys category increased 10 per cent to $272.6 million, driven by year-over-year revenue gains in Transformers and Nerf, as well as from growth in Marvel products and initial shipments of Jurassic World lines.

Games category revenues increased seven per cent in the quarter, with Magic: The Gathering and Monopoly registering increased revenues in the quarter. This is partially offset by declines in several other brands, including Angry Birds games.

The girls category revenues declined 16 per cent in the first quarter 2015 due to declines in Furby, Furreal Friends and Easy Bake products. Growth in Littlest Pet Shop and Play-Doh Dovinci products partially offset these declines.

Elsewhere, pre-school category revenues increased 22 per cent in the first quarter 2015 with strong performers including Play-Doh, Transformers Rescue Bots and initial shipments of Jurassic Word.

Entertainment and licensing segment net revenues increased 74 per cent to $60.6 million compared to $34.9 million in 2014. This was boosted by licensing revenues for franchise brands, in particular My Little Pony and Transformers.

“2015 is off to a good start with continued momentum in our business, led by growth in all of our franchise brands and the underlying strength in demand across international markets, including the emerging markets,” said Brian Goldner, Hasbro’s president and chief executive officer.

“For the first quarter, we grew revenue, improved profitability and delivered growth in adjusted net earnings despite significant foreign exchange headwinds. While the first quarter is the least significant quarter of the year, the global Hasbro team delivered a strong start to the year.”

Deborah Thomas, Hasbro’s chief financial officer, added: “Our first quarter results highlighted the strength of our brands, our global reach and our balance sheet.

"Foreign exchange did negatively impact both revenues and earnings in the quarter; however, several factors helped mitigate the negative impact to profitability. These included the continued momentum in our franchise brands, the benefit of favorable foreign exchange product cost hedges and a larger contribution of higher-margin Entertainment and Licensing revenues. Our first quarter results keep us on track to achieve our previously stated targets.”

US and Canada segment net revenues increased two per cent to $345.7 million compared to $337.7 million in 2014 while international segment net revenues were $305.7 million compared to $305.5 million in 2014. Growth in Asia Pacific and Latin America was offset by a decline in Europe.

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