Annual Report 2021
"We focused on keeping our purpose and the consumer always front and center, making decisions to drive shareholder value creation over the long term, and on delivering an excellent year."
Chief Executive Officer
2021 Year in Review
or 11.9% of revenue, up from 9.2% of revenue in 2020
Adjusted operating profit* up 20% to $995.2 million, or 15.5% of revenue, an expansion of 40 basis points year-over-year
Adjusted EBITDA* up 23% to $1.31 billion
Generated $817.9 million in operating cash flow for the full-year 2021 and paid down $1.08 billion in long-term debt
Paid $374.5 million in dividends to shareholders during the year; Board of Directors increased quarterly dividend 3%, payable in May 2022
Net revenues increased 17% to
Building on Our Strengths:
We are operating at the intersection of timeless consumer motivations: the transportive power of great storytelling and the human energy and connection generated from play. The blueprint allows us to unlock that potential and, with the consumer at the center of all we do, we can and will supercharge our business guided by insight and a can-do growth mindset.
Gaming Expertise & Growth
Hasbro Total Gaming Portfolio
2021 revenue up 19%; 9% 5-year revenue CAGR
in Magic: the Gathering over past five years to drive 150% revenue growth
Building Bigger, More Profitable Brands
We have invested and continue to invest significant capital around the Blueprint – expanding and growing our powerful gaming portfolio, including in MAGIC: THE GATHERING and DUNGEONS & DRAGONS; building and developing deeper and more valuable brands like PEPPA PIG, MY LITTLE PONY, PLAY-DOH and POWER RANGERS; telling compelling stories to global audiences; and in developing our talented teams.
2021 marked the successful relaunch of an iconic Hasbro Franchise Brand: MY LITTLE PONY. Led by the expertise of the eOne team, My Little Pony: A New Generation animated feature and global campaign drove the brand. The film fueled greater than 100% growth in toy and game point of sale in the fourth quarter 2021 and double-digit growth in licensed consumer products for the year. With a significant multi-year content road map led by eOne – including 500 minutes of animation this year alone – and a deep and innovative merchandise program, we believe MY LITTLE PONY is positioned to reclaim its place as a leading global lifestyle brand through expansive Blueprint activation. We are actively building similar executions with TRANSFORMERS starting in 2022 and DUNGEONS & DRAGONS in 2023.
Advancing Our Commitment to Planet and People
CLIMATE & SUSTAINABILITY
- On track to eliminate plastic in new Hasbro product packaging by end of 2022.
- Set goal to make Potato Head brand with plant-based or renewable materials by end of 2024. Transitioning all other existing toys and games to recycled or renewable materials by 2033.
- Continued Global Expansion of industry-leading Toy Recycling program, now in 12 countries.
- Achieved 100% Renewable Energy Goal for Owned & Operated facilities.
- Achieved 99% Supplier Participation in Higg Index environmental assessment tool.
HUMAN RIGHTS & ETHICAL SOURCING
- Audited 100% of third-party vendors and major subcontractors for social compliance globally.
- Achieved 100% third-party factory compliance with mandatory Hasbro Ethical Sourcing Academy online training.
- Advanced Female Empowerment Program in third-party factories.
- Provided more than $17 million through in-kind and financial support including the donation of more than 750,000 toys and games.
- Engaged 92% of our employees worldwide at more than 300 volunteer projects through our Team Hasbro Employee Volunteer program.
HUMAN RIGHTS & ETHICAL SOURCING
- On track with our 2025 goals to increase the percentage of women in leadership roles globally to 50% and to expand ethnically and racially diverse employee representation in the US to 25%.
- Continued to foster a culture of inclusion through initiatives such as providing unconscious bias workshops for a majority of our employees globally.