Little colored bricks always appeal to children...and older ones!
The Danish Lego consolidated its position as world number one in toys in 2023, but its net profit fell by 5% during a year marked by investments in the fields of sustainability and digital technology.
Its turnover increased by 2%, to 65.9 billion crowns (8.8 billion euros), it announced Tuesday in its annual report, a record amount for the family group which continues to to gain market share.
Retail sales, for which he did not specify the figures, increased by 4% during a difficult year for the toy industry due to high inflation.
Net profit, on the other hand, contracted by 5% to 13.1 billion crowns (1.76 billion euros).
The popularity of the products of the manufacturer of the famous little bricks, which increased tenfold during the pandemic with the time spent at home, cannot be denied, according to its management.
Lego was the world number one in the games market with a market share of 14% in 2022, according to market analysis firm Statista.
No figures were available for 2023. “
In five years, we have experienced organic growth of 81%, while the market grew by 12%
,” said group CEO Niels Christiansen in an interview. , which is banking on further progress in 2024. “
Each year, we have therefore taken market share and the outlook for this year is that we will continue to take it
,” he added.
A slight downside for this unlisted flagship of Danish industry, sales declined in China but have recovered in the United States and central and eastern Europe.
“
In China, economic conditions are severe enough for many consumers to exercise some restraint, perhaps buying the same number of Lego kits, but sometimes slightly cheaper sets
,” said Niels Christiansen.
Lego and Fortnite winning combo
With a portfolio of 780 products, the most extensive ever offered, Lego, whose name is a contraction of the Danish +play well+ (+Leg godt+) - is sufficiently varied not to rely on a single line, he stressed.
“
We're not the type of company that makes 25% of our sales on a single product...none of them are inherently the most exciting
.”
The famous Lego City and Lego Technic house models, as well as the Star Wars and Harry Potter franchises or the range intended for older builders, Lego Icons, however, drive the group's sales, which does not publish detailed figures.
The partnership with video game publisher Epic Games allowed it to achieve another performance last year with the launch of the Lego Fortnite platform in December.
Free and open access like its predecessor, the game uses many of the visual codes of Fortnite, but with Lego characters, as well as construction materials and tools directly derived from the world of the Danish brand.
“
During the first two days of the launch, 2.4 million consumers played at the same time on the platform, which must be the record for all launches
,” rejoiced Niels Christiansen, in office since 2017.
Lego Fortnite is the first major achievement by Lego and Epic Games since the announcement, in April 2022, of the Danish group and Sony's acquisition of a stake in the capital of the Cary (North Carolina) publisher, for two billion dollars.
75% owned by the family holding company Kirkbi and 25% by the Lego Foundation, Lego also intends to become increasingly green.
In 2023, its environmental spending has increased by 60% and it is seeking to improve its bricks, by building it from biosourced materials, which is the case for only 18% of them.
The group, which employs some 28,528 people worldwide, continues to open stores and now has 1,031.