Hasbro Inc said on Tuesday the 27 April 2021 it would raise prices of toys and games to counter higher raw material costs as the company sees surging demand for its Nerf blasters and board games from families spending more time at home.
Shares of the Monopoly maker, which on late Monday announced the sale of Entertainment One Music to Blackstone Group for $385 million, rose 1 percent in midday trading.
The soaring transportation costs due to high demand and supply disruptions caused by the COVID-19 pandemic have been a major concern and issue which in turn has resulted in the decision on hand.
“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.
Demand for toys and games has remained on high for more than one year into the pandemic, with the company reporting a 14% rise in first-quarter sales in its consumer products unit.
The net revenue for the company rose just by 1% to $1.11 billion in the quarter, missing analysts’ estimates of $1.17 billion, as the delays and closures of the Covid-19 hurt the company’s entertainment production revenue.