Hasbro revenue tops $5B in 2016, profit grows 19%

HASBRO'S Disney Frozen doll line helped boost sales in 2016. Pictured is the Disney Frozen Elsa's Magical Story Cape doll, which retails for $19.99. / COURTESY HASBRO INC.
HASBRO'S Disney Frozen doll line helped boost sales in 2016. Pictured is the Disney Frozen Elsa's Magical Story Cape doll, which retails for $19.99. / COURTESY HASBRO INC.

PAWTUCKET – Disney Princess, Frozen and Trolls helped drive revenue and profit for Hasbro Inc. in 2016, as the company reached the $5 billion revenue mark for the first time in its 94-year history.

The toymaker said revenue hit a record in the girls category, growing 52 percent to $1.19 billion in 2016 from $798.2 million in 2015.

In addition to sales of Disney Princess and Disney Frozen items, as well as the successful launch of Dreamwork’s Trolls, Hasbro said it had “significant growth” from Baby Alive, and also noted strong sales of Furreal Friends and Easy-Bake Oven products.

Revenue climbed nearly 13 percent to $5.1 billion last year, from $4.4 billion in 2015. Fourth-quarter revenue rose 11.2 percent, to $1.6 billion from $1.5 billion in fourth quarter 2015.

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Profit grew 19.3 percent, to $533.2 million in 2016, or $4.34 per diluted share, compared with profit of $446.9 million, or $3.57 per diluted share. Fourth-quarter profit climbed 3.6 percent to $180.6 million, or $1.52 per diluted share, from $174.4 million, or $1.39 per diluted share, in the year-ago period.

Earning beat analysts’ estimates of $4.10 for the year and $1.27 for the quarter.

Brian Goldner, Hasbro’s chairman and CEO, said Hasbro’s global team “delivered a tremendous 2016.”

“Hasbro’s foresight to build brands led by storytelling, consumer insights and innovation, combined with the relentless execution of our ‘Brand Blueprint,’ including investments in entertainment and digital gaming, is driving our business and creating long-term strategic differentiators for Hasbro. We are well positioned for a successful 2017,” Goldner said in a statement.

Cash flow from operations for 2016 climbed 40.3 percent to $774.9 million, an increase of nearly a quarter of a million dollars.

U.S. and Canada segment revenue rose 15 percent over the year to $2.6 billion, while international revenue climbed 11 percent to $2.2 billion, and entertainment and licensing increased 8 percent to $265.2 million.

In addition to the growth in the girls’ category, the boys’ and games’ divisions also saw revenue increases, of 4 and 9 percent, respectively, to $1.8 billion and $1.4 billion. The boy’s category was fueled by Nerf sales, and shipments of Yo-Kai Watch, while franchise brand Magic: The Gathering, Pie Face, Simon, Bop It, Duel Masters and Speak-Out boosted game revenue.

Preschool was the only category to experience an over-the-year decline, falling 1 percent to $589.2 million from $596.8 million. Sales of Playskool items declined.

Hasbro shares were trading at $93.76 as of 10:54 a.m. Bloomberg reported that Hasbro shares advanced as much as 17 percent to $96.34 on Monday, the biggest intraday gain since February 2001. The news outlet said the stock already had gained 10 percent in the 12 months through Friday.

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