Following up 2020’s incredible performance won’t be easy, but the LEGO Group is still expecting to grow in 2021 – even if it is at a more modest rate.
Last year saw the company’s sales climb by 21%, leading to a net profit increase of 19%. Those figures are pretty much unprecedented in recent years, following the post-LEGO Movie-hype crash of 2017 when revenue dropped for the first time in a decade.
And while the LEGO Group hasn’t come out and said it specifically, it’s safe to say that much of that vertical growth can be attributed to the state of the world in 2020, with plenty of people trapped at home with nothing else to do but build bricks.
As vaccines are rolled out all over the globe, though, we’ll hopefully start to see some semblance of normality return to our daily lives. And that’s likely why the LEGO Group is targeting much more modest growth in 2021, effectively tacitly admitting that, yes, the pandemic had plenty to do with its escalating profits in 2020.
According to its latest annual report, the company is targeting ‘single-digit’ growth this year, which would be a marked reduction on the 21% growth of 2020. But it says this will still outstrip the global toy market, which boomed by 10.4% last year.
The LEGO Group states it will sustain its rising sales by focusing on the triple threat of product innovation, retail innovation, and growth in both new and established markets, including – as always – China. (Read more about the company’s plans for China right here.)
Of course, setting a lower target for 2021 also means the LEGO Group’s execs will be able to shout from the rooftops if it manages to surpass them, which still seems likely given how many of its products keep dropping out of stock at LEGO.com, including huge sets like 75192 Millennium Falcon.
Time will tell how the company performs this year, but for now, you can dig into the figures behind its 2020 performance by clicking here.