Hasbro cuts its production in China
Hasbro, a global games and entertainment company, reduced its manufacturing output in China in 2021 compared to the previous year.
During 2021, the majority of the company‘s products were manufactured at third-party facilities in the Far East, primarily in China, Vietnam and India, using a wholly owned subsidiary operation based in Hong Kong for quality control and order coordination purposes.
As of December 26, 2021, 48% of third-party product manufacturing was sourced outside of China, up from its benchmark at year-end 2020, when it was 45%.
Within the United States and Ireland, Hasbro uses two facilities formerly owned and now operated by Cartamundi, located in East Longmeadow, Massachusetts, and Waterford, Ireland, to manufacture significant quantities of Hasbro gaming products under an agreement several years of manufacture.
Overall, the company has diversified its global sourcing mix and decreased its reliance on Chinese manufacturing by increasing production of its products in other countries, including Vietnam and India.
Hasbro
At the end of 2021, the company employed 6,640 people worldwide, with approximately 51% of its employees in North America (42% in the United States; 9% in Canada), 24% in Europe, 18% in Asia Pacific and 7% in Latin America (includes Mexico).
Also at the end of the fiscal year, approximately 55% of its global workforce were women, 46% of its employees in management positions (director level and above) were women, and minorities represented about 22% of the company’s workforce. company in the United States, of which 14% were in management roles.
Only 6% of our employees worldwide are covered by unions or collective agreements.
During 2021, the net income of its top five retail clients represented 36% of its consolidated global net income, including its largest clients, Wal-Mart Stores, Amazon.com and Target Corporation, which represented 13, 11 and 8%, respectively, of consolidated global net income.
In 2020, e-commerce sales represented a significant portion of total sales to these customers, as consumers increasingly purchased Hasbro products online compared to in-store purchases due to the closure and limited access to retail stores during the Covid-19 pandemic and the company saw this trend continue throughout 2021 compared to pre-pandemic levels.
While Hasbro posted revenue of $6.42 billion in 2021 (2020: $5.465 million and 2019: $4.72 billion), its net profits were $147 million, $97 million, and $74 million, in that same chronological order.
