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Full-Year 2016
- 2016 full-year net revenues of $5.02B increased 13%
- Revenues grew 14% excluding the negative impact of foreign exchange;
- 2016 revenues grew in all major operating segments: 15% in the U.S. and Canada segment; 11% in the International segment
- 2016 Operating profit increased 14% to $788.0M;
- Net earnings increased 22% to $551.4 million or $4.34 per diluted share;
Fourth Quarter 2016
- Fourth Quarter net revenues increased 11% to $1.63 billion;
- Net earnings increased 10% to $192.7 million, or $1.52 per diluted share.
Hasbro, Inc. today reported financial results for the full-year and fourth quarter 2016. Net revenues for the full-year 2016 increased 13% to $5.02 billion versus $4.45 billion in 2015. Excluding a negative $61.0 million impact from foreign exchange, 2016 revenues increased 14%. As reported net earnings for the full-year 2016 increased 22% to $551.4 million, or $4.34 per diluted share, compared to $451.8 million, or $3.57 per diluted share in 2015.
"Hasbro's global team delivered a tremendous 2016. We reached the $5 billion revenue mark for the first time in company history, we improved profitability and we invested to grow Hasbro over the long-term while increasing our dividend and share repurchase levels," said Brian Goldner, Hasbro's Chairman, President and Chief Executive Officer. "Hasbro's foresight to build brands led by storytelling, consumer insights and innovation, combined with the relentless execution of our Brand Blueprint including investments in entertainment anddigital gaming, is driving our business and creating long-term strategic differentiators for Hasbro. We are well positioned for a successful 2017 and the continued advancement of Hasbro's brand-building capabilities for years to come."
Fourth Quarter 2016 Financial Results
Fourth quarter 2016 net revenues increased 11% to $1.63 billion compared to $1.47 billion in 2015. Excluding a negative $11.9 million impact from foreign exchange, fourth quarter 2016 revenues increased 12%.
As reported net earnings for the fourth quarter 2016 increased 10% to $192.7 million, or $1.52 per diluted share, compared to $175.8 million, or $1.39 per diluted share in 2015.
Full-year 2016 U.S. and Canada segment net revenues increased 15% to $2.56 billion compared to $2.23 billion in 2015. Growth in the Girls, Games and Boys categories offset a decline in the Preschool category. The U.S. and Canada segment reported operating profit growth of 21% to $522.3 million, or 20.4% of net revenues, compared to $430.7 million, or 19.4% of net revenues in 2015.
International segment net revenues increased 11% to $2.19 billion compared to $1.97 billion in 2015, behind growth in all four product categories: Girls, Preschool, Games and Boys. On a regional basis, Europe revenues increased 14%, Latin America grew 9% and Asia Pacific was up 6%. Emerging markets increased 9%. Excluding an unfavorable $58.4 million impact of foreign exchange, net revenues in the International segment grew 14%, increasing 15% in Europe, 18% in Latin America and 7% in Asia Pacific. Emerging markets increased approximately 12% absent the impact of foreign exchange. International segment operating profit increased 15% to $294.5 million, or 13.4% of revenues, compared to $255.4 million, or 13.0% of net revenues.
Entertainment and Licensing segment net revenues increased 8% to $265.2 million compared to $244.7 million in 2015. Full-year gains were driven by growth in Consumer Products and Digital Gaming, as well as the addition of Boulder Media. As reported operating profit was $49.9 million compared to $76.9 million in 2015.
Boys category revenues for the full-year 2016 increased 4% to $1.85 billion. Revenue growth for the year was driven by gains in Franchise Brand Nerf, as well as shipments of Yo-Kai Watch.
Games category revenues for the year increased 9% to $1.39 billion. Hasbro's differentiated gaming portfolio drove growth across gaming formats, including face-to-face gaming, off-the-board gaming and digital gaming. Franchise Brand Magic: The Gathering revenues increased for the eighth straight year, along with growth in Pie Face, Duel Masters, Simon, Bop-It and the successful launch of the Speak out game.
Girls category revenues in 2016 grew 50% to a record $1.19 billion. The category benefited from shipments of Hasbro's line of Disney Princess and Disney Frozen fashion and small dolls, the successful launch of Dreamworks Trolls and significant growth from baby alive. Additional revenue growth came from Hasbro brands including Furreal Friends and Easy-Bake Oven products.
Preschool category revenues declined 1% to $589.2 million in 2016. The fifth consecutive year of revenue growth in Franchise Brand Play-Doh was more than offset by declines in Playskool Heroes and core Playskool items. | 
