Hasbro, Inc. (NASDAQ:HAS) reported that its net revenue in 1Q2015 surged 5%to $713.5 million compared to $679.5 million in 1Q2014. Excluding the negative impact from foreign exchange, revenue surged 14% in the quarter. The net earnings came at $0.21 per diluted share, compared to $0.24 per diluted share, in 1Q2014. As reported 1Q2014 net earnings included positive tax adjustments of $0.10 per diluted share.
The management view
Brian Goldner, the CEO and President of Hasbro, said that FY2015 is off to a strong start with continued momentum in business, supported by growth in all of the company’s Franchise Brands and strong demand across international markets. The company recorded improved profitability and revenue growth in the first quarter. Moreover, there was growth seen in adjusted net earnings despite foreign exchange headwinds. The first quarter is considered as the least significant quarter.
Strength of brands
Deborah Thomas, the Chief Financial Officer of Hasbro, Inc. (NASDAQ:HAS), said that the first quarter results highlight the strength of the company’s brands, the balance sheet and the global reach. Foreign exchange negatively affected both earnings and revenues in the quarter; still several factors significantly reduced the negative impact to profitability. It included the benefits of foreign exchange product cost hedges, the momentum in the Franchise brands and higher margin licensing and entertainment revenues. He added that the first quarter performance keeps the company on track to achieve the previously announced targets.
U.S. and Canada Segment net revenues surged 2% to $345.7 million against $337.7 million in 1Q2014. The performance reflects growth in the Games, Preschool and Boys segments, partially offset by a drop in the Girls division. The U.S. and Canada Segment operating profit growth surged 16% to $41.4 million from 1Q2014. The international division net revenues came at $305.7 million versus $305.5 million in same quarter, a year ago.