Hasbro, Inc a leading toy and game company, reported financial results for the first quarter 2024. Next, let's review some of the main points.
FIrstly, revenue declined 24% driven primarily by the eOne film and television divestiture; excluding the divestiture, revenue decline 9% with growth in the Wizards of the Coast and Digital Gaming segment (+7%) and Entertainment (+65%) more than offset by declines in Consumer Products (-21%).
Regarding the earnings, the operating profit of $116.2 million includes $32.4 million of intangible amortization associated with eOne, losses on the disposal of businesses, and costs linked to the company's transformation. The operating margin stands at 15.3%. Adjusted operating profit amounts to $148.6 million, showing an increase of $101.4 million compared to the previous year, with an adjusted operating margin of 19.6%, up by 14.9 points compared to the previous year. These improvements are attributed to a favorable mix of businesses, increased productivity in the supply chain, and reduced operating costs.
The company also reported net earnings of $0.42 per diluted share; adjusted net earnings of $0.61 per diluted share benefiting from improved operations and favorability from a stock compensation adjustment and net interest expense reduction. Operating cash flow was $177.8 million vs. $88.8 million in the prior year driven by improved operating results and benefits from working capital.
It's worth mentioning that regarding entertainment segment revenue, there was an 85% decline impacted by the sale of eOne Film and TV in December 2023. Absent this impact, revenue grew by 65%, driven by the delivery of "Peppa pig" content. Operating profit amounted to $5.8 million compared to an operating loss of $8.7 million in the first quarter of 2023. Adjusted operating profit reached $18.2 million, contrasting with an adjusted operating loss of $2.5 million in 2023.
Chris Cocks, Hasbro Chief Executive Officer made a good assessment of the first quarter: "The first quarter was a good start to the year for Hasbro; we are continuing to see the results of our transformation work. Performance from our licensing portfolio shows the strength of our brands and we continue to fuel innovation in games and toys as we expand our reach across play patterns to fans of all ages," stated.
Finally, Gina Goetter company´s Chief Financial Officer also showed optimism: "We made solid progress in our turnaround efforts in the first quarter. We landed revenue where we expected and drove significant operating profit improvement led by our operational excellence program and improved business mix. We remain on track for our full-year commitments", noted.