Lego’s Jump in Sales and Profits
In the recently released annual sales report from the company, Lego announced that total revenue reached an impressive 43.7 billion Danish krone ($6.99 billion). This marks a 13% increase in comparison to 2019, showing off the continued growth of business for the toy-making giant. The toy company also saw consumer sales grow by 21% in comparison to the year before. On top of this, annual profits also increased to 9.9 billion Danish krone ($1.6 billion), translating to a yearly growth of 19%.
With several other family entertainment options such as theme parks, movie theaters, and cruise ships all being closed, Lego pounced on the opportunity, seeing the company reach massive marks across the board as a result. However, the jump in sales is not simply due to the pandemic.
In fact, the major highlights of growth for the toy company came from the increase in business in new regions such as China and the strong capabilities of its online store. While the company did not release any specific information about online sales, they did report over 250 million clicks on the website over the course of the year.
Setbacks and Plans for the Future
Lego also faced significant setbacks in 2020 as business operations at manufacturing plants in China and Mexico had to be shut down to reduce infection rates. Additionally, distribution costs rose, making shipping more difficult. At the same time, business plans for movie-related toy lines also had to be delayed as many films have postponed releases until movie theaters are able to open at full capacity.
Despite these challenges, the business continues forward in 2021 with plans in the works to open 120 new Lego stores in the year, 80 of which will be in China. The business also plans to reduce its carbon emissions by 37% by 2032 by investing $400 million toward sustainability efforts over three years.
In a statement released with the annual report, CEO Niels B. Christiansen said, “We are very pleased with these results. They show the timeless relevance of the LEGO brick and learning through play. This performance is also a testament to the passion, creativity and resilience of our people.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.