Hasbro's 2024 Success: A Recipe for Future Growth

Hasbro, Inc. (NASDAQ: HAS), a leading games, IP, and toy company, reported strong financial results for the fourth quarter and full year 2024, driven by strategic focus on cost savings and reinvigorating its innovation engine. The company's 2024 performance was marked by growth in key segments, improved profitability, and a return to profitability for its Consumer Products segment. Hasbro's strategic focus on cost savings and reinvigorating its innovation engine significantly contributed to its strong 2024 performance and positions the company for continued growth and margin expansion in 2025 and beyond.

The Wizards of the Coast and Digital Games segment had another record year, with an operating margin north of 40%. This segment's success was driven by the potent one-two punch of MAGIC: THE GATHERING and MONOPOLY GO!, both poised for continued growth in 2025. Wizards grew for the 14th time in the last 15 years, led by a booming digital licensing business, while MONOPOLY GO! maintained high levels of engagement and capped the year with a star-studded TV campaign and success with its new Tycoon club. Baldur's Gate 3 saw solid year 2 sales, nearly doubling initial expectations, further bolstering the segment's performance.

Hasbro's licensing business also played a significant role in its overall success in 2024. The segment saw strong growth and profitability, with out-licensed brands like FurReal Friends and Littlest Pet Shop experiencing POS lifts of over 50%. The LEGO Ideas: Dungeons and Dragons set delighted fans and was nominated for a Toy of the Year Award, demonstrating the value of Hasbro's IP vault and partnerships. Hasbro's licensing business is highly diversified, with over 1,000 partners driving over 4,000 individual collaborations, resulting in a high-profit revenue stream.

Looking ahead, Hasbro is optimistic about growth opportunities in 2025 and beyond. The company expects total Hasbro revenue to be up slightly in constant currency, with an adjusted operating margin of 21%-22% and adjusted EBITDA of $1.1 billion to $1.15 billion. By continuing to focus on operational rigor and anticipating the future of play, Hasbro is well-positioned for multiyear growth and margin expansion.

In conclusion, Hasbro's 2024 success was driven by its strategic focus on cost savings and reinvigorating its innovation engine, leading to growth in key segments and improved profitability. The company's strong performance positions it for continued growth and margin expansion in 2025 and beyond. Investors should consider Hasbro as a solid investment opportunity, given its diversified product portfolio, strong licensing business, and optimistic outlook for the future.