Lego Group has reported a 27% sales rise for its latest financial year – and says in the next it will continue to invest in digitalisation, in its retail channels, in product innovation and sustainability.
The group says revenue grew by 27% to DKK 55.3bn (£6.2bn) during 2021, while consumer sales grew by 22% over the same period. That, it says, outpaces the toy industry and has helped to increase Lego’s share of the market. Net profit came in at DKK13.3bn (£1.5bn), up from DKK 9.9bn (£1.1bn) a year earlier. Looking ahead, the retailer now expects to see sales return to more sustainable single digit growth long-term.
Lego Group chief executive Niels B Christiansen says its team of more than 24,000 was able to “keep the world playing” during the pandemic lockdowns of 2021.
He adds: “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. I am excited about our ability to continue to invest against these priorities due to our strong financial results.
“Combined, these investments will allow us to bring Lego play to many more children around the world now and for generations to come.”
Lego will open a new US$1bn factory in Vietnam in the coming year, while expanding the capacity of its existing five factories on three continents.
It is also pledging DKK 2.8bn (£0.3bn) in donations to programmes that give children and family in need or in crisis the chance to learn and play. Separately, it has announced donations to help children and families affected by the war in Ukraine.
Christiansen says: “2022 marks the 90th anniversary of the Lego Group. We are pleased that in this milestone year our strong financial foundations allow us to make such significant investments in building a business that will inspire and develop future builders for many generations to come.”
Multichannel strategy
During the year, the company opened 165 new Lego branded shops, including 90 in China, taking its total stores to 832 as of December 31. Its new immersive retail store platform – as seen in its London flagship – will be taken to more stores in 2022.
Online, its digital building instructions were downloaded 9.6m times during the year, while its Lego Life app was downloaded by more than 33m users since launch in 2018. Lego has also recruited to digital hubs in Denmark, London and Shanghai.
Sustainability
Lego is to phase in sustainable packaging, replacing single-use plastic following trials, from mid-2022 as it targets a 2025 deadline to shift to sustainable packaging. It has also unveiled a prototype brick made from recycled plastic bottles, while investing in renewable energy, including a 98% increase in the solar capacity of its factories.
Lego is a Top250 brand in RXUK Top500 research.
