Business Description

Hasbro, Inc. provides products and services for children and families. It has a variety of brands and entertainment properties. The following brands are used by the firm: Littlest Pet Shop and Magic: The Gathering. It operates in the following areas: the United States and Canada; International; Entertainment, Licensing, and Digital. The United States-Canada segment is responsible for the marketing and sales of toys and games in the United States.

The International segment is responsible for the marketing and sales of product categories to wholesalers and retailers in Europe, Latin America, and South America. Distributors are also available in countries that do not have a direct presence. Entertainment, Licensing, and Digital manage digital entertainment operations for a movie, television, and digital gaming.

Key Financials

Revenue (US$ Mn):

• Hasbro, Inc.’s annual revenue for 2020 was US$ 5,470 Mn, a 15.89% increase from 2019
• From 2018’s annual revenues, Hasbro, Inc. registered a 3.06% increase in 2019, amounting to US$ 4,720 Mn
• Total revenue of US$ 4,580 Mn was generated in 2018 by Hasbro, Inc.

Operating Income (US$ Mn):

• The operating income generated by Hasbro, Inc. in 2020 was US$ 976 Mn
• At a 96.98% increase, Hasbro, Inc.’s operating income of US$ 652 Mn was indexed in 2019
• Hasbro, Inc. generated an operating income of US$ 331 Mn in 2018

Net Income (US$ Mn):

• Hasbro, Inc.’s net income for 2020 was US$ 223 Mn, a -57.21% decrease from 2019
• From 2018’s net incomes, Hasbro, Inc. registered a 136.36% increase in 2019, amounting to US$ 520 Mn
• A net income of US$ 220 Mn was generated in 2018 by Hasbro, Inc.

Operating Margin %

• The operating margin generated by Hasbro, Inc. in 2020 was 9%
• At a 91.67% increase, Hasbro, Inc.’s operating margin of 14% was indexed in 2019
• Hasbro, Inc. generated an operating margin of 7% in 2018

SWOT Analysis

Strengths

Leveraging the brand value for incremental growth

Over the years, Hasbro has built strong brand equity for its products. Hasbro has a wide range of brands that it owns and controls. These brands are introduced over new formats and platforms. Hasbro’s brand architecture distinguishes between franchise brands, partner brands, and Hasbro gaming. It also includes emerging brands. The company’s most important owned or controlled brands that can generate substantial long-term revenue are called franchise brands. These brands include Baby Alive and Magic: The Gathering. Hasbro creates toys and games for partner brands.

The company’s key partner brands include Marvel, Star Wars and Disney Princess, and Disney Frozen. Hasbro has a strong portfolio of gaming brands, including Pie Face, Dungeons and Dragons and Jenga, Operation Scrabble, and Trivial Pursuit, as well as Jenga and Sesame Street. The company also offers some emerging brands that are not yet franchise brands but which are owned or controlled by Hasbro brands. Hasbro believes many emerging brands can become franchise brands with further investment and development.

The company’s emerging brands portfolio includes Littlest Pet Shop and Furby as well as Furreal Friends, Furby, Furreal Friends, and Hanazuki. New brands like Hanazuki are also included in the emerging brand category. The company’s entertainment-based storytelling activities also help to build its brands. Through its own production studio, Hasbro Studios, Hasbro engages in global programming development and distribution.

The company is focusing on its brands to ensure a consistent revenue stream, future growth, and profitability. Hasbro’s franchise brands generated revenue of US$2,411.8 million in FY2019. This was 51.1% of its revenue. Hasbro also reported revenue from partner brands at US$1,221 (25.9%), Hasbro Gaming at US$709.8 million (15%), and emerging brands at US$377.6 (8%). Hasbro’s brand strategy and ability to leverage brand equity for growth have delivered outstanding returns. This provides long-term growth prospects and revenue for the company.

Get this premium content

The Premium data is Locked

Buy Now to Unlock Premium Data

Request Sample Data