Hasbro(HAS) - 2024 Q4 - Annual Results

Revenue Performance - Full year 2024 revenue declined 17% primarily due to the eOne divestiture; excluding this impact, revenue declined 7%[3] - Total net revenues for the year ended December 29, 2024, were $4,135.5 million, a decrease of 17.3$5,003.3 million for the year ended December 31, 2023[26] - Fourth quarter 2024 revenue declined 15%; excluding the eOne divestiture, revenue declined 3%[8] - Total company external net revenues decreased by 15% to $1,101.6 million for the three months ended December 29, 2024, compared to$1,288.9 million for the same period in 2023[28] - For the year ended December 29, 2024, total external net revenues were $4,135.5 million, down 17$5,003.3 million in 2023[30] Profitability - Adjusted operating profit for 2024 was $839 million, an increase of$362 million compared to the previous year, with an adjusted operating margin of 20.3%[3] - Operating profit for the year ended December 29, 2024, was $690.0 million, compared to a loss of$1,538.8 million for the year ended December 31, 2023[26] - Operating profit improved to $59.8 million for the three months ended December 29, 2024, from a loss of$1,198.6 million in the same period of the previous year, representing a greater than 100% change[28] - The operating margin for the total company improved to 16.7% for the year ended December 29, 2024, compared to a negative margin of -30.8% in 2023[30] Earnings - Reported net earnings for 2024 were $2.75 per diluted share; adjusted net earnings were$4.01 per diluted share[3] - Net earnings for the year ended December 29, 2024, were $394.4 million, a significant recovery from a loss of$1,487.8 million in the previous year[27] - Hasbro reported a net loss attributable to the company of $34.3 million for the quarter ended December 29, 2024, compared to a net loss of$1,061.1 million for the same quarter in 2023[32] - Hasbro's net earnings attributable to the company for the year ended December 29, 2024, were $385.6 million, a recovery from a loss of$1,489.3 million in 2023[35] - Hasbro's diluted earnings per share for the quarter was $(0.25), improving from$(7.64) in the prior year quarter[35] Cash Flow and Liquidity - Operating cash flow for 2024 was $847 million, up from$726 million in the prior year, driven by improved profitability and working capital[4] - Cash and cash equivalents increased to $695.0 million as of December 29, 2024, up from$545.4 million at the end of the previous year[27] - The company reported a net cash provided by operating activities of $847.4 million for the year ended December 29, 2024, compared to$725.6 million in the previous year[27] Cost Management - The company delivered $370 million in gross cost savings and$227 million in net cost savings for 2024[3] - The cost of sales as a percentage of net revenues improved to 28.5% for the year ended December 29, 2024, down from 34.1% in the previous year[26] Debt and Liabilities - Long-term debt increased to $3,380.8 million as of December 29, 2024, compared to$2,965.8 million at the end of the previous year[25] - Total liabilities decreased to $5,155.3 million as of December 29, 2024, from$5,453.9 million as of December 31, 2023[25] - Hasbro plans to continue paying down debt and progress towards leverage targets in 2025[15] Dividends - Hasbro declared a quarterly cash dividend of $0.70 per common share, payable on March 12, 2025[11] - The company declared cash dividends of$2.10 per share for the year ended December 29, 2024, consistent with the previous year's $2.80 per share[26] Segment Performance - Digital and Licensed Gaming revenue increased 22$112 million for the full year 2024[7] - Consumer Products segment net revenues slightly decreased by 1% to $746.3 million, while operating profit increased significantly from a loss of$126.2 million to $50.5 million[28] - Wizards of the Coast and Digital Gaming segment net revenues decreased by 7$339.0 million, with operating profit declining by 22% to $80.9 million[28] - Entertainment segment net revenues plummeted by 91$16.3 million, with an operating loss of $16.2 million compared to a loss of$1,110.1 million in the previous year[28] - Franchise Brands net revenues decreased by 4% to $3,120.9 million for the year ended December 29, 2024[31] - North America saw a 2$421.0 million, while Europe experienced a 10% decline to $177.9 million[29] Impairments and Losses - The company incurred$1,011.0 million in impairment of goodwill and intangible assets related to the eOne Film and TV business in 2023[35] - The company experienced a loss on disposal of business amounting to $37.4 million for the year ended December 29, 2024, down from$539.0 million in the previous year[27] - The loss on disposal of the eOne Film and TV business was $13.0 million for the quarter, compared to$66.0 million in the same quarter last year[33] - The company recorded an impairment of $78.2 million ($59.8 million after-tax) related to its Discovery JV investment in Q4 2024[37] - Impairment of goodwill and intangible assets in the Entertainment segment was $1,011 million ($998.3 million after-tax) for Q4 2023[37] Strategic Initiatives - Strategic transformation initiatives costs for the quarter were $9.8 million, reflecting ongoing efforts to improve business processes[33] - eOne Film and TV business divestiture costs amounted to$3.2 million ($2.4 million after-tax) for Q4 2024 and$18.2 million ($21.0 million after-tax) for Q4 2023[36] - Total costs related to the eOne Film and TV business for the year ended December 31, 2023 were$35.1 million ($34.0 million after-tax)[36]