Lego’s figures are correct, which means the toy giant from Denmark can focus on its strategic initiatives. Germany remains a core country for the company, as the Lego boss reports.
Thanks to double-digit growth rates in sales and profits, Lego can continue to work on initiatives for a successful future of playing with its products. Thanks in particular to strong demand for Lego products in America and Europe, the toy company from Billund, Denmark, increased its sales in the first half of 2024 by 13 percent compared to the same period last year, to 31 billion Danish kroner (4.15 billion euros).
Consumer sales increased by 14 percent, while the bottom line was a 16 percent increase in net profit to 6 billion krone (around 800 million euros), almost a billion more than in the first six months of 2023.
Lego has once again significantly outperformed the rest of the toy industry and gained market share, the company announced. At the same time, the Lego Group has increased spending on strategic initiatives such as sustainability and digitalization in order to further drive short- and long-term growth. Spending on such initiatives is to be further accelerated in the second half of the year.
Strong brand presence also in pedestrian zones
“We are very happy with the result here,” Lego CEO Niels B. Christiansen told the German Press Agency. While the toy market is stagnating, the Lego Group has been able to gain market share all over the world. “We have very good momentum and the Lego brand is currently very, very strong,” he said. Lego’s broad product range continues to be relevant for all different age groups and interests, which is driving strong demand in the markets.
According to the company, the most popular product lines include series such as Lego Icons, Lego Star Wars, Lego Technic, Lego City and Lego Harry Potter. In the first half of the year alone, around 300 new products were added to the range.
Christiansen also sees one of the secrets to Lego’s success in its growing number of physical stores, of which there are now more than 1,000 around the world. While many other companies have closed their stores and are increasingly focusing on online business, Lego is investing in both and can bring the entire Lego universe closer to consumers in stores, said Christiansen. Opening such Lego stores is always quite expensive at the beginning – but once they are up and running, they do extremely well.
Christiansen reported that after the Corona pandemic, it was seen – perhaps somewhat surprisingly – that people practically everywhere in the world really wanted to shop in stores again. At the beginning of the pandemic, there was a debate about whether everything would soon shift to online shopping – but this was reversed after the Corona period.
Key market Germany
Business in Germany remains central to Lego. “It is one of the absolute key markets,” said Christiansen. The situation on the German market has fluctuated a little over time, with ups and downs – but when he looks at Lego’s development over the past five years, he is very satisfied with it.
Christiansen also pointed out that Lego has made great strides in increasing the proportion of sustainable materials in its products. 22 percent of a Lego brick produced in the first half of 2024 is no longer oil-based, he said. This does not make the brick feel any different in the hand. “It’s exactly the same feeling. It’s exactly the same quality and safety, and it’s the same durability,” Christiansen said.
The development of the more sustainable Lego brick took a lot of time and money, but it made him particularly proud, the Lego boss revealed. “I am more proud of it than of the financial result: that we have reached a milestone in proving that you can really make progress with sustainable materials. Even when it comes to high-quality products like a Lego product.”
Source: Stern
