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Fantastic Lego Revenue, Claimed to Surpass Toy Industry Achievement Records.
This is the strategy of The Lego Group.
This is the strategy of The Lego Group.
Dream - The Lego Group recorded revenue during the first six months of 2023. Revenue reached DKK 27.4 billion, growing one percent compared to the first quarter of 2022. Consumer sales grew three percent, claiming to outperform the declining toy market and contributing to strong market share growth. The operating profit was reported as expected at DKK 6.4 billion, different from DKK 7.9 billion in the first quarter of 2022.
CEO of The LEGO Group, Niels B Christiansen, said that The LEGO Group continues to accelerate investments for long-term strategic initiatives including manufacturing, digital, and sustainability. Photo: Dok Lego Group
Source: The Lego Group
Net profit of The Lego Group reached DKK 5.1 billion compared to DKK 6.2 billion in the first semester of 2022. Meanwhile, free cash flow reached DKK 1.1 billion compared to DKK 3.8 billion in the same period last year. This reflects planned investments to expand production capacity globally and enhance technology.
Consumer sales in major developing markets such as America are experiencing growth, while consumer sales in China are being affected by slower-than-expected return of shopping behavior. "Our company will continue to expand our retail footprint and online presence in China in 2023 and beyond to reach more children," writes The Lego Group.
Portfolio The Lego Group in 2023 will include more than 750 products designed to attract builders of various ages and interests. About half of the portfolio each year consists of new products, in which these products showcase the creativity and innovation of its talented designers. Strategic initiatives to drive long-term growth of The LEGO Group have increased strategic initiatives to provide sustainable and relevant long-term growth.
The Lego Group has built a new factory in Virginia, USA, in April and continues to construct a new factory in Vietnam. Both locations are invested with US$1 billion (DKK 6.7 billion) and aim to operate carbon neutrally by 2025 and 2024. Additionally, the LEGO factories in Mexico, the Czech Republic, Hungary, and China have also increased their capacity. The investment is seen as further strengthening the company's global manufacturing network by placing production closer to key markets to ensure short and efficient supply chains. This enables the company to respond to changes in consumer demand while reducing carbon footprint.
The Lego Group continues to make progress in various initiatives to reduce environmental impact. In the first quarter, The Lego Group continued its transition to paper-based packaging and announced a partnership with European Energy to produce e-methanol that has the potential to be used in future products. The Lego Group aims to double spending over three years for activities to reduce its carbon footprint, including using more sustainable materials.
As part of its digital transformation, The Lego Group introduced technology in the first six months to enhance the shopping experience. This includes a point of sale application in stores as well as new digital tools that streamline warehouse orders, reducing delivery time. The company continues to plan for the growth of its digital team and expects to have around 1,800 digital colleagues in four locations by the end of the year: Billund, Copenhagen, London, and Shanghai.
The Lego Group believes that learning through play provides children with the best opportunity to develop lifelong skills that will help them reach their full potential. During the first six months of 2023, more than 4.3 million children benefited from product donations and local community engagement activities. "We remain fully focused on our ambition to inspire and develop more children worldwide," said Niels B Christiansen.
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