American toy manufacturer Hasbro has had to deal with the strong dollar in its first quarter, but still outperformed its major competitor Mattel.
5 % turnover growth despite strong dollar
Averse exchange rate effects have cost the Monopoly and My Little Pony manufacturer 62.6 million dollars (some 58 million euro) in turnover over the last quarter, Hasbro revealed. Nevertheless, quarterly turnover grew 5 % to 713.5 million dollars (some 670 million euro). Ignoring these fluctuations, Hasbro would have had a 14 % turnover growth. Net profit did drop however: from 32.1 million dollars to 26.7 million dollars (25 million euro).
CEO Brian Goldner called it a "good start to the year". According to him, there was increased demand for Hasbro toys, while the My Little Pony and Transformers licenses (in television shows for example) generated 74 % more income than the year before.
Mattel's turnover slips
Hasbro's biggest competitor, Mattel, also had to deal with the strong dollar as turnover dropped another 2 % to 922.7 million dollars (nearly 865 million euro). Without exchange rate fluctuations, the Barbie and Fisher-Price manufacturer would have had a 5 % turnover growth, but even that would have been 3 times as low as what Hasbro managed in that first quarter.
When revealing the quarterly numbers, CEO Christopher Sinclair said he saw "careful signs of improvement". The new CEO, who took over from Brian Stockton in January, will hope these signs will yield positive results in next quarter...