Product innovation secures strong 2013 result for Lego Group

Published on: 27th February 2014

A successful launch of Lego Legends of Chima, continued success for Lego Friends and strong performance from classic lines such as Lego City, contributed to an increase in sales of 11% for the Lego Group.LEGO_Logo300

“In 2013 we increased our sales by 11%, outperforming the general toy market, which is a very satisfactory result. In less than 10 years, we have now more than quadrupled our revenue,” says Jørgen Vig Knudstorp, President and CEO of the Lego Group, adding:

“Continually developing and innovating our consumer offering is a key to our success, and in 2013 we successfully developed and launched products that children put high on their wish list all over the world.”

In 2013 evergreen product lines such as Lego City, Lego Duplo, Lego Technic and Lego Creator, all grew double digit. Lego Friends, launched in 2012, showed its long term potential by also growing double digit in 2013, while Lego Legends of Chima was successfully established as a major theme globally.

Key figures from the Lego Group Annual Report 2013 published today:

  • In local currency, revenue increased 11% year over year.
  • Revenue increased by 10% in DKK to DKK 25,382m [USD 4,519m, EUR 3,403m] against DKK 23,095m [USD 3,987m, EUR 3,103m] the year before.
  • The year’s operating profit increased to DKK 8,336m [USD 1,484m, EUR 1,118m] against DKK 7,606m [USD 1,313m, EUR 1,022m] – an increase of 10%.
  • Net profit was DKK 6,119m [USD 1,089m, EUR 820m] compared to DKK 5,613 m [USD 969m, EUR 754m] in 2012 – an increase of 9%.
  • Cash flow from operating activities was DKK 6,744m [USD 1,247m, EUR 904m] compared to DKK 6,220m [USD 1,100m, EUR 834m] in 2012, an increase of 8%.
  • The number of average full time employees increased by 13% – an increase of 1,355 to 11,755 employees for the full year.
  • Investments in property, plant and equipment amounted to DKK 2,644m in 2013 against DKK 1,729m in 2012.

The Lego Group reporting currency is DKK. The conversion from DKK to USD/EUR is a non-official unaudited, calendar-based calculation using an annual average currency rate (however conversion of net cash generated from operating activities is based on year-end currency rate) in 2013 and 2012 respectively.

The revenue growth was achieved in a global toy market that declined slightly in value in 2013.  North America saw a decrease in 2013, whereas European markets were flat but with very varying developments. In Asia, the Japanese market continued its decline, while the emerging Chinese market saw growth.

However, the Lego Group achieved sales growth in all major markets. While the large US, UK and Central and Northern European markets had healthy single digit growth rates, most other markets saw double digit sales growth.  Especially in Asia, which is still a relatively small market for the Lego Group, the sales growth was very strong.

While the Lego Group expects the global toy market to grow low single digit annually in the future, Jørgen Vig Knudstorp believes the company can outgrow the global market and thereby gain market share. “We remain ambitious and expect to continue to grow our market share. We will do so by expanding our global presence – but also through a continued focus on developing and innovating our product offering so that we remain relevant to children all over the world”, he said.

2013 was a year of employee capacity and capability building in areas such as production, engineering, sales and R&D, to equip the Lego Group for future growth. This resulted in welcoming a significant number of new employees during the year, increasing the average number of full-time employees by 1,355 to 11,755, one of the largest annual employee increases in the company’s history.

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