Hasbro has released its second quarter 2019 results, reporting a nine per cent increase in revenues to US$984.5 million.
Revenues in the US and Canada segment increased by 14 per cent and in the Asia Pacific region, revenues increased by two per cent. Revenues in the international segment overall declined by one per cent.
The entertainment, licensing and digital segement recorded a revenue increase of 28 per cent in Q2.
Across its portfolio, Hasbro recorded revenue increases in franchise brands (14 per cent), emerging brands (28 per cent) and partner brands (three per cent), while Hasbro gaming declined by eight per cent.
Hasbro chairman and CEO Brian Goldner said that the business is on-track to meet its growth target.
"We delivered a high-quality second quarter, with positive consumer trends at retail and profitable growth led by several geographies and brand categories.
"Our investments are differentiating Hasbro’s portfolio and delivering profitable revenue streams, including continued Magic: The Gathering revenue growth in tabletop and digital.
"We grew revenues in the US and Europe, and we believe we are well-positioned to deliver against our target of profitable growth for the full-year 2019," he said.
Hasbro CFO Deborah Thomas said that despite taking more inventory into the US, the business still delivered improved margins.
"The global Hasbro team executed a strong quarter with revenue and profit gains while managing a dynamic trade and inventory environment.
"As part of this process, we incurred some additional costs and took more inventory into the US than typical. Despite these steps, margins improved, Hasbro’s overall inventory position declined, and we generated healthy operating cash flow.
"We are generating cost savings from our plan and are on track to deliver approximately US$50 million in net savings this year.
"Importantly, we are well positioned for the holiday season with major brand initiatives across categories, including The Walt Disney Animation Studios' Frozen 2 and Lucas Films' Star Wars: The Rise of Skywalker which do not launch until the fourth quarter," she said.
To read the full Q2 report, click here.