Q4 2024 Hasbro Inc Earnings Call Transcript
Key Points
- Hasbro Inc (HAS) achieved a record operating profit margin of over 20% in 2024, indicating strong financial performance.
- The Wizards of the Coast and Digital Games segment grew by 4% year-over-year, with an impressive operating margin exceeding 40%.
- The company saw significant growth in its licensing business, with a 60% increase over the past three years, making Hasbro the third largest entertainment licensor globally.
- Hasbro's Consumer Products segment returned to profitability, driven by improved marketing effectiveness and retailer alignment.
- The company announced new strategic partnerships, including a collaboration with Mattel for PLAY-DOH Barbie and a video game partnership with Sabre Interactive.
- Hasbro Inc (HAS) reported a 7% decline in total revenue for 2024, excluding the E1 divestiture, indicating challenges in some segments.
- The Consumer Products segment experienced a 12% revenue decline, impacted by exited brands and reduced closeout volume.
- The company anticipates a flat to down 4% revenue outlook for the Consumer Products segment in 2025, with headwinds from NERF and Star Wars.
- Wizards of the Coast's revenue declined by 7% in Q4 2024 due to having one fewer set release, highlighting potential volatility in product release schedules.
- Hasbro faces potential tariff impacts from imports, particularly from China, which could affect cost structures and profitability.
Good morning, and welcome to the Hasbro fourth quarter and full year 2024 earnings conference call. (Operator Instructions) A question-and-answer session will follow the formal presentation. (Operator Instructions). Today's conference is being recorded.
If you have any objections, you may disconnect at this time. At this time, I'd like to turn the call over to Kern Kapoor, Senior Vice President of Investor Relations. Please go ahead.
Thank you, and good morning, everyone. And joining me today are Chris Cocks, Hasbro's Chief Executive Officer; and Gina Goetter, Hasbro's Chief Financial Officer, and Chief Operating Officer. Today, we will begin with Chris and Gina providing commentary on the company's performance. Then we will take your questions. Our earnings release and presentation slides for today's call are posted on our investor website.
The press release and presentation include information regarding non-GAAP adjustments and GAAP financial measures. Our call today will
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