In the company’s annual report, the privately held LEGO Group is reporting increased sales, revenue and profit.
The LEGO Group is reporting increased profits, sales and revenue in the year ending December 2019.
When compared with 2018, revenue grew by 6% to DKK 38.5 billion (approx £4.5 billion). Operating profit increased by 1% to to DKK 10.8 billion (approx £1.25 billion) and net profit increased by 3% to DKK 8.3 billion (approx £970 million).
The increase in profit is being trumpeted as a success as the company has been investing for long-term growth, with the strategy leading to a decrease in profits in the first half of 2019.
There was sales growth in all markets, with single-digit growth in Europe and the Americas and double-digit growth in China. This is a result of the company’s strategy to reach markets that it has traditionally not had much presence in. Visitors to LEGO.com, which had a revamp in 2019, increased by 29%.
“We are very pleased with this result and I would like to thank our dedicated colleagues for their amazing contribution. It was a strong year where we outperformed the toy industry and grew consumer sales and market share in all our largest markets,” says LEGO CEO, Niels B Christiansen. “We also expanded our presence in newer markets which helped us achieve our ambition of introducing learning through LEGO play to many children for the first time.
“Our industry, like many others, is being redrawn by digitalisation and global socio-economic shifts. We’re leveraging our strong financial foundation to invest in initiatives that will allow us to keep ahead of these trends and enable growth in the long term. This includes innovating play, innovating our retail ecosystem and investing in new market entries so that we are well positioned to inspire young builders for generations to come.”
While the LEGO Group never reveals exactly which products and themes are the strongest sellers, those highlighted as success stories for 2019 are LEGO City, LEGO Creator, LEGO Friends, LEGO Technic, LEGO Classic and LEGO Star Wars, LEGO Harry Potter, LEGO Super Heroes and LEGO Disney.
“We are very pleased with the popularity of our core products such as LEGO City and LEGO Creator, which, like all our products, provide children with endless possibilities to build and rebuild,” explains the CEO. “We are also satisfied with the performance of our IP sets and our new theme LEGO Hidden Side which seamlessly blends building and augmented reality.”