Dive Brief:
- For all its supply chain challenges, toy giant Hasbro posted revenue and profit gains in its consumer products business for the fourth quarter and full year fiscal 2021.
- Revenue in the company’s consumer products segment rose 9% for both Q4 and the full year, according to a release. In that segment, operating profit rose by a more modest 2.9% for the quarter but was up more than 30% for the fiscal year.
- Companywide, Hasbro revenue was up 17% for Q4 and the full fiscal year, ending 2021 with $6.4 billion in revenue. While operating profit fell in Q4 by 8%, it was up 52% for the full fiscal year.
Dive Insight:
For the largest companies, the many disruptions of 2021 didn’t spell doom. It helped that much of that disruption was ultimately due to a sharp rebound in consumer demand for the year. With deep pockets, negotiating leverage and scale, big players were able to find ways to move goods across oceans and stock shelves.
Back in October, Hasbro said it logged $100 million in lost sales for Q3 because of unfilled orders. By early Q4, though, the majority of those orders had already been filled.
For the year, operating profit and margins inside Hasbro’s consumer products segment grew, with higher shipments — again due to higher consumer demand — and price increases more than offsetting spikes in freight and distribution costs. All told, EBITDA in the segment was up 18% for the year.
Hasbro Chief Financial Officer Deborah Thomas said in a press release that “the Hasbro team did an excellent job in unprecedented circumstances” and declared the company’s efforts to navigate the year’s supply chain challenges a success.
Read another way, the increased supply chain costs from the year offset some of the gains made from price increases and consumer demand. That is a story Hasbro shares with other large brands and retailers. Nike, for example, has posted increased sales all through the year alongside higher supply chain costs and more disruptions, meaning sales and profits could have been yet higher in a more stable supply chain environment.
Hasbro’s efforts to diversify its business and add more non-toy revenue streams have also given it a boost. For the year, its gaming segment — which includes digital gaming and the Wizards of the Coast role-playing games subsidiary — posted revenue growth of 42%. The current head of that segment, Chris Cocks, is set to take over as Hasbro’s permanent CEO this month.
Hasbro’s entertainment segment saw revenues increase by 27%, helped along by branded media products such as the My Little Pony animated feature that ran on Netflix.
