Consumer Products

- North America

- Europe

- Asia Pacific

- Latin America

United States

International

Entertainment, Licensing and Digital Segment

Total Revenue

4db4894a2916b5aac46c911dea9d2d0e1e1e9e6d1851f2483b93370e1d4722dd

Net earnings (USD, millions)

Loss on disposal of business (USD, millions)

Other non‐cash items (USD, millions)

Net cash provided by operating activities (USD, millions)

Additions to property, plant and equipment (USD, millions)

Acquisitions / Investments and acquisitions, net of cash acquired (USD, millions)

Other (Investing) (USD, millions)

Net cash provided (utilized) by investing activities (USD, millions)

Repayments of borrowings (USD, millions)

Stock‐based compensation transactions (USD, millions)

Dividends paid (USD, millions)

Payments for tax withholding on share-based compensation (USD, millions)

Other (Financing) (USD, millions)

Net cash (utilized) by financing activities (USD, millions)

Effect of exchange rate changes on cash (USD, millions)

Net increase (decrease) in cash, cash equivalents and restricted cash (USD, millions)

Cash, cash equivalents and restricted cash at beginning of year (USD, millions)

Cash, cash equivalents and restricted cash at end of period (USD, millions)

507dbf67e5c41fa343d68800f5864d6e9f480d8d3ec89955c53341fe36e2e325

Net Revenues (USD, millions)

Cost of Sales (USD, millions)

Program Cost Amortization (USD, millions)

Royalties (USD, millions)

Product Development (USD, millions)

Advertising (USD, millions)

Amortization of Intangibles (USD, millions)

Loss on Disposal of Business (USD, millions)

Selling, Distribution and Administration (USD, millions)

Total Costs and Expenses (USD, millions)

Operating Profit (Loss) (USD, millions)

Interest Expense (USD, millions)

Interest Income (USD, millions)

Other (Income) Expense, Net (USD, millions)

Total Non-Operating Expense, Net (USD, millions)

Earnings (Loss) Before Income Taxes (USD, millions)

Income Tax Expense (Benefit) (USD, millions)

Net Earnings (Loss) (USD, millions)

Net Earnings Attributable to Noncontrolling Interests (USD, millions)

Net Earnings (Loss) Attributable to Hasbro, Inc. (USD, millions)

Basic Net Earnings (Loss) per Common Share (USD)

Diluted Net Earnings (Loss) per Common Share (USD)

ac02bcd5cca13bcb87073ff26075b534047ce3ebd8ff11474ea16e5adc895a3a

In Q1 2024, Hasbro's net revenues dropped sharply primarily due to the **divestiture of its eOne Film and TV business**, which led to an **85% decline** in revenues from the Entertainment segment as revenues fell from **$185.4 million to $28.0 million**.  **[0000046080-24-000079_exhibit991q12024.htm:7]** **[0000046080-24-000085_has-20240331.htm:33]** **[0000046080-24-000079_exhibit991q12024.htm:0]**  Additionally, the **Consumer Products segment** experienced a **21% decline**, driven by broader industry trends, exited businesses, reduced closeout sales from previous inventory clean-up initiatives, and diminished demand for key brands like **NERF and TRANSFORMERS**.  **[0000046080-24-000079_exhibit991q12024.htm:7]** **[0000046080-24-000085_has-20240331.htm:32]** **[0000046080-24-000079_exhibit991q12024.htm:0]**  The losses in Partner and Portfolio Brands further compounded the decline, even though growth in the Wizards of the Coast and Digital Gaming segment helped partially offset the overall decrease.  **[0000046080-24-000085_has-20240331.htm:29]** 

Why did Net Revenues drop so sharply in Q1 2024?

Hasbro's massive decline in Operating Profit (Loss) for **Q4 2023** was driven by several factors. The company recorded significant **non-cash goodwill and intangible asset impairments** of approximately **$1 billion**, including charges related to its Family Brands business, the eOne Film & TV business, the eOne Trademark, and the PJ Masks intangible asset.  **[0000046080-24-000034_has-20231231.htm:61]**  Additionally, **aggressive inventory write-offs** that impacted operating income by **$130 million** further contributed to the loss.  **[HAS_3373054_3]**  The decline was compounded by **planned business exits**, a notable **25% revenue drop in the Consumer Products segment** and a **49% decline in the Entertainment segment**, and various **operational excellence charges** related to workforce reductions and restructuring efforts.  **[0000046080-24-000008_exhibit991q42023.htm:1]** **[HAS_3373054_0]** **[HAS_3373054_3]** 

What drove the massive decline in Operating Profit in Q4 2023?

The sudden **Impairment of Goodwill** in Q4 2023, amounting to **$960.00 million**, was primarily driven by the **Family Brands Reporting Unit's downward revision in its financial forecast**. Key factors included **lower profitability in the PJ MASKS franchise** and a strategic shift within the Entertainment segment toward an **asset-light, partner-led model**. These factors collectively led to the reporting unit's carrying value exceeding its fair value, triggering the recorded non-cash impairment charge.  **[0000046080-24-000034_has-20231231.htm:128]** **[0000046080-24-000034_has-20231231.htm:76]** **[0000046080-24-000034_has-20231231.htm:94]** **[0001193125-24-085438_d814749ddef14a.htm:128]** 

What caused the sudden Impairment of Goodwill in Q4 2023?

The drastic decline in **Basic EPS** in Q4 2023 was primarily driven by significant non-cash impairment charges, including approximately **$1 billion** in goodwill and intangible asset impairments linked to the sale of the E1 Film and TV business, as well as a strategic shift for key family brands. Additionally, the company incurred substantial costs from the **Blueprint 2.0 strategy**—amounting to **$453.7 million**—along with **Operational Excellence charges** of **$55.6 million** and a **$130 million** non-cash impact from aggressive inventory write-offs. These combined factors contributed to the markedly more negative EPS result in Q4 2023.  **[0000046080-24-000034_has-20231231.htm:62]** **[HAS_3373054_0]** **[HAS_3373054_3]** 

Why was Basic EPS drastically more negative in Q4 2023?

Hasbro’s sharp turnaround in Q1 2024 was driven by **improved segment performance**—especially in the **Wizards of the Coast and Digital Gaming** areas, which saw a **60% increase in operating profit to $122.8 million**, and by **significant improvements in the Entertainment segment** after eliminating losses from the divested eOne Film and TV business. In addition, **operational excellence initiatives**, including cost savings and enhanced supply chain productivity, alongside strengthened corporate operating profit through cost management and stock compensation adjustments, further contributed to the turnaround.  **[0000046080-24-000079_exhibit991q12024.htm:0]** **[0000046080-24-000079_exhibit991q12024.htm:6]** **[0000046080-24-000085_has-20240331.htm:28]** **[0000046080-24-000079_exhibit991q12024.htm:8]** **[HAS_3380438_15]** 

What led to the sharp turnaround in Operating Profit in Q1 2024?

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Operating Cash Flow was so low in Q2 2022 due to **higher working capital requirements** and **changes in operating assets and liabilities**. Specifically, the company experienced **increased inventory costs** from advanced purchases made to address supply chain disruptions, along with **higher incentive bonus, royalty**, and **freight payments** that strained cash inflows. Additionally, a significant **increase in inventories** combined with a notable **decrease in accounts payable and accrued liabilities** further reduced the cash generated from operations.  **[0000046080-22-000099_has-20220626.htm:53]** **[0000046080-22-000099_has-20220626.htm:6]** 

Why was Operating Cash Flow so low in Q2 2022?

Why did Free Cash Flow turn negative in Q2 2022?

66b5860ae86cae6ba0e13cd2a9f317caab6b779cc031719c74f94a49954f0fca

Cash and cash equivalents, including restricted cash (USD, millions)

Short-term investments (USD, millions)

Accounts receivable, net (USD, millions)

Inventories (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Assets held for sale (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, less accumulated depreciation (USD, millions)

Goodwill (USD, millions)

Other intangible assets, net of accumulated amortization (USD, millions)

Other assets (USD, millions)

Total other assets (USD, millions)

Total assets (USD, millions)

Current portion of long-term debt (USD, millions)

Short-term borrowings (USD, millions)

Accounts payable (USD, millions)

Accrued liabilities (USD, millions)

Liabilities held for sale (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Common stock of $ 0.50 par value. Authorized 600,000,000 shares; issued (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Treasury stock, at cost (USD, millions)

Noncontrolling interests (USD, millions)

Total shareholders' equity (USD, millions)

Total liabilities, noncontrolling interests and shareholders' equity (USD, millions)

1bd22a93ea166c7d702eaba10587887fa1da5c70987fc416d2bb4fc49e7d6049

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

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cc6c9d85b7ef68584f1471e3c589c61c75593e3a70de3f8f292f4045329d4251

8545a4adb7102080e5fe0f80db85319c3e260a2337477d8e4e1b7fcf7e4d11da

911fc2c0160c4ac169f43910c69ee0ce3cec6cd1763ab8cd2298484db7ba7f88

Hasbro Inc (HAS)

Financials