Hasbro held its Q4 & Full Year 2022 Financial Call and made several announcements regarding the company’s current situation and future plans.
Hasbro’s new strategic plan, Blueprint 2.0, focuses on fewer, bigger, and more profitable brands, a sharpened focus on key categories, and growth initiatives in digital games, content, direct-to-consumer, and licensing. The company made progress in improving its bottom line despite a disappointing Q4, with $50 million in run-rate cost savings identified in 2022 and an anticipated $150 million in run-rate savings in 2023. Hasbro’s Direct Business and Wizards of the Coast, and Digital Gaming saw growth, with Magic: The Gathering reaching a billion-dollar brand milestone. However, there were challenges, including supply chain disruptions, pricing assumptions, and misfiring in updating the Open Game License. Hasbro’s licensing business was up 5%, with success in preschool, creativity, and action categories. The company is focused on growing market share and content centered around Hasbro IP. In 2023, Hasbro anticipates revenue to be down low-single digits, but progress in cost savings, operational excellence, and key brand initiatives is expected to drive continued operating margin expansion.
CEO Chris Cocks stated:
“In October, we laid out our new strategic plan for Hasbro, Blueprint 2.0, built on fewer, bigger, more profitable brands; a sharpened focus on the categories where Hasbro can be best in class; an Operational Excellence program to speed our agility and improve our cost competitiveness; and growth initiatives in digital games, Hasbro content, direct to consumer and licensing. While Q4 proved to be a disappointment, particularly in our traditional Toys and Games segment, we made progress under the hood that meaningfully improved our bottom line and sets us up for margin expansion in 2023 despite what we anticipate will be a continued challenging consumer environment.”
You can check out our full report, after the jump.