NEWS

Lego annual revenue increases 27%

Published on: 9th March 2022

Having seen gains during the pandemic as Lego sets became a popular pastime, the company credited its diverse range and eCommerce business.

Lego said its annual revenue jumped 27%, reaching $55.3 Danish krone, or about $8.06b, up from $43.7 Danish krone, or around $6.36b, in 2020.

Lego enjoyed impressive gains during the pandemic, as consumers of all ages gravitated toward its building sets. The Group said its diverse offering with multi-generational appeal, as well as a marked shift to selling directly to consumers online, were contributing factors to the increase. Sales of Lego building kits remained strong throughout 2021, as their popularity continued even after the coronavirus lockdown had ended. Having gained market share around the world, the Group warned that growth would slow to less than 10% this year as schools and workplaces reopen.

Chief executive, Niels Christiansen, said: “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.”

Top performing brands included Lego City, Lego Technic, Lego Creator Expert, Lego Harry Potter and Lego Star Wars.

The company’s report shared that it plans to begin phasing in sustainable sales packaging in mid-2022, to replace the single-use plastic bags it uses to separate Lego bricks.

During 2021, Lego opened 165 new stores, including 95 in China, bringing its total global store count to 832. China has become one of Lego’s top markets and accounts for 340 stores in its global retail footprint. A new Lego factory will open in Vietnam to support growth in Asia

Lego announced last week that it has ceased deliveries to around 80 independently owned stores in Russia in response to the war in Ukraine. The company has also donated around $16.5m to emergency relief efforts, with a focus on providing support for children and families.

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