The annual financial report for Hasbro for 2020 is out and it shows the expected negative impact covid had last year... but surprisingly, they appear to have had a better 4th quarter than the previous year, so something significant turned around to rebound better than the negative impact of covid earlier in the year.
The international figures aren't good though, showing a big downturn in sales and profit for both the 4th quarter and the full year, with one reason being noted as being the exchange rate against the US$ (a weaker US dollar means they get less money in America from the "commission" Hasbro America makes from every non-American sale), and this could see an increase in our prices soon, so that the money being sent back to Hasbro in America goes back up into positive territory.
I think the total balance sheet is concerning though, after the purchase of eOne early last year, Hasbro's available cash has gone from being half a billion dollars in the black at the end of 2019, to 3.2 billion dollars in the red at the end of 2020. I guess eOne counts as an asset of similar value, so as long as that acquisition is productive, it is an asset that could be sold off if Hasbro's cash-flow and available cash suddenly gets worse.
This slide is an excellent one for those interested in knowing how much it actually costs to produce Hasbro toys (in general), with the "cost" to them being just 31.5% of the revenue (the wholesale price to their retailers). A 69% profit margin is quite extraordinary, which is a lot more than I was expecting, as retailers margins are usually around 40%.
The breakdown of that 31.5% cost to Hasbro of their (mostly toy) products is 14.5% for the physical materials for the toys and packaging, and 17% for the costs behind the production and shipping.
Originally Posted by griffin
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