There are a Few Reasons Why Hasbro Toys Are Going to Start Costing More

Many parents may be upset to learn that their children’s toys are going to be costing more, that is if they are from Hasbro Inc.

Hasbro announced on Tuesday that the company would be raising prices of toys and games in order to counter higher raw material costs.

The company has been seeing explosive demand for its Nerf blasters as well as board games, such as Monopoly, as families spend more time at home and indoors.

Hasbro, like many manufacturers in the U.S. is having to contend with higher resin prices, packaging and metal prices, as well as transportation costs due to high demand and supply disruptions during Covid-19.

It was earlier this month that rival toy maker Mattel Inc. had announced its expectations for a “significant impact” to margins from higher resin prices and ocean freight charges.

“Freight and input cost increases have become more pronounced over the past several months, and we have plans in place to help mitigate those costs, including price increases for the second half of the year,” Hasbro Chief Financial Officer Deborah Thomas said.

The company had reported a 14% rise in first quarter sales in its consumer products unit. Excluding certain items, Hasbro saw $1 a share in earnings, which came in above the 65 cents that analysts had been expecting, per a Refinitiv IBES estimate.

Net revenue rose just 1% to $1.11 billion in the quarter, which missed analysts’ estimates of $1.17 billion.

Hasbro said that it saw “substantial” opportunity in non-fungible tokens (NFTs) for some of its collectible brands.

It was also this week that Hasbro announced the sale of Entertainment One Music to Blackstone Group Inc. for a staggering $385 million in cash.

The company has entered into a definitive agreement to sell Entertainment One Music (widely known as eOne Music). The transaction has been approved by both Hasbro and Entertainment One Canada’s board of directors, and is subject to customary closing conditions and receipt of regulatory approvals. The property has been on the market for several months.

Subsequent to the closing of the transaction, eOne Music will operate as a separate business unit headed by its current global president
Chris Taylor, and “will focus on building a creator-first music brand with global scale and expertise,” according to the announcement.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.