Hasbro profits drop 10% in 2Q even as revenue grows
HASBRO INC., the Pawtucket-based toy manufacturer, saw its net revenue rise 8.2 percent in the second quarter to $829.3 million, even as its net income dropped 10 percent to $32.8 million, or 26 cents per diluted share.
PAWTUCKET – Hasbro Inc., the third-largest toymaker in the world, reported second-quarter net earnings of $32.8 million, or 26 cents per diluted share, a 10 percent decline compared with the $36.5 million, or 28 cents per diluted share, reported during the same period last year.
Excluding an unfavorable tax adjustment of $13.8 million, adjusted net earnings for the second quarter totaled $47.3 million, or 36 cents per diluted share, Hasbro said.
Despite the year-over-year income drop, net revenue increased 8.2 percent for the three months ended June 29, rising to $829.3 million from $766.3 million for the second quarter of 2013.
“Second-quarter performance reflects our continuing re-imagination of brands across the brand blueprint and the positive impact of our investment and focus on strategic growth opportunities within Hasbro,” said Brian Goldner, president and CEO of Hasbro. “The combination of great brand innovation and storytelling is resonating with consumers globally to deliver revenue and profit improvements across multiple product categories and segments.”
At the same time, the company has been returning cash to shareholders. During the first six months of the year, purchases of common stock and dividends paid increased 198 percent to $322 million, even as cash flow from operations declined 63.3 percent to $109.3 million.
After several weak quarters, Hasbro’s boys segment revenue improved significantly in the second quarter, climbing 32.4 percent to $335.8 million from $253.7 million a year earlier. Hasbro attributed the growth to higher sales of its Transformers and Marvel brand products.
Girls segment revenue increased 9.6 percent to $163.8 million compared with $149.4 million in the second quarter of 2013. However, Hasbro’s games and preschools segments each posted declines in quarterly revenue of 11.6 percent and 3.6 percent, respectively.
The company’s entertainment and licensing segment saw revenue increase 35.1 percent in the second quarter to $47.7 million, compared with $35.3 million during the same period last year, growth that benefitted from improved digital gaming sales, Hasbro said.
In terms of the toymaker’s geographic segments, second-quarter revenue in the U.S. and Canada fell 2 percent to $383 million while international revenue rose 16.6 percent to $396.8 million.