The LEGO Group has announced its financial results for 2021, revealing consumer sales skyrocketed by a further 22% on 2020.
Revenue grew by 27% to DKK 55.3bn (£6.2bn), while operating profit increased a blistering 32% to DKK 17bn (£1.9bn) and net profit settled at DKK 13.3bn (£1.5bn). The LEGO Group says these numbers – backed up by double-digit growth across all its markets – ‘outpace the toy industry’, and come despite ‘ambitious strategic investments’ and ‘increased freight and raw materials costs’.
“I am grateful for everything the LEGO Group was able to achieve in 2021,” said CEO Niels B. Christiansen. “Our passionate and committed team of more than 24,000 colleagues showed tremendous dedication and resilience to keep the world playing. Meanwhile, our strong financial performance allows us to further accelerate strategic investments to help us reach more children in the long term.”
The company’s top-selling themes in 2021 apparently included CITY, Technic, Creator Expert, Harry Potter and Star Wars, adding up to what the LEGO Group calls its ‘largest and most diverse portfolio ever’. Its financial results statement also refers to sets appealing to ‘builders of all ages and interests’, suggesting it’s seen good results from its ‘Adults Welcome’ campaign.
In 2022 and beyond, the LEGO Group says it will continue to invest in areas such as retail channels, sustainability, product innovation and – perhaps most reassuringly for those of us finding sets difficult to come by – production capacity, which will be driven in part by its new factory in Vietnam and expanding capacity of existing production sites over the next five years.
“In 2021 we saw the benefits of strategic investments made over the past three years to innovate our portfolio, expand and evolve our retail experiences and increase capacity within our global supply chain network,” Christiansen added. “I am excited about our ability to continue to invest against these priorities due to our strong financial results. Combined, these investments will allow us to bring LEGO play to many more children around the world now and for generations to come.
“2022 marks the 90th anniversary of the LEGO Group. We are pleased that in this milestone year our strong financial foundations allow us to make such significant investments in building a business that will inspire and develop future builders for many generations to come.”
Despite these incredibly strong results, the company expects growth rates to return to single-digit levels in 2022, which it says is more sustainable long-term.