American toy business, Hasbro, has released its 2019 Q1 earnings, reporting that net revenues increased by two per cent to US$732.5 million compared to US$716.3 million in Q1 2018.
Absent a negative US$24.3 million impact of foreign exchange, Q1 2019 revenues grew six per cent for the business.
Net earnings for Q1 were US$26.7 million versus adjusted net earnings (excluding the Non-GAAP Adjustments) of US$12.4 million in Q1 2018.
Hasbro CEO, Brian Goldner, said that Hasbro is on track to deliver full-year growth.
“The global Hasbro team is executing very well and delivered a good start to the year.
“Our long-term investments in new platforms provided a meaningful contribution from our digital and e-sports initiative, Magic: The Gathering Arena, as well as growth in Magic: The Gathering tabletop revenues. In addition, Monopoly, Play-Doh and Transformers were among the brands posting revenue gains this quarter.
“We are beginning to see improvement in our commercial markets, notably in the US and Europe, and operating profit was driven by high margin revenue growth and our cost savings activities.
“With most of the year ahead of us, we remain on track to deliver profitable growth for the full-year 2019,” he said.
Geographically, the US and Canada's net revenues grew one per cent to US$357.9 million compared to US$353.9 million in 2018. However, internationally, the business didn't fare as well, with net revenues declining two per cent from US$287.9 million in 2018 to US$282.6 per cent in 2019.
Portfolio-wise, Emerging Brands' net revenues grew the most in the quarter, increasing 22 per cent to US$59.4 million compared to US$48.8 million in Q1 2018. Meanwhile, Partner Brands' net revenues declined the most during the period, slipping 14 per cent to US$172 million from US$200.6 million in 2018.
To access the full Q1 Hasbro report, click here.