Lego posts boost in profit, sales as it raised some prices
COPENHAGEN, Denmark –
Lego mentioned Tuesday that income elevated by 5% in 2022 from a 12 months earlier and gross sales rose even because it raised costs on higher-ticket toys.
The Danish toy firm mentioned internet revenue rose to 13.8 billion kroner (US$2 billion) from 13.3 billion kroner. Sales had been up 12%, whereas income grew 17% to 64 billion kroner (US$9.2 billion).
CEO Niels B. Christiansen known as 2022 “a milestone year” because the privately held firm celebrated its ninetieth anniversary.
We “landed the year beyond expectations on the back of exceptional growth last year and despite challenging market conditions,” he mentioned.
With inflation rising, Lego elevated costs on a few quarter of its merchandise, Christiansen mentioned.
“The low-cost products were not affected. The increase was chiefly on our expensive products,” he mentioned. “Despite that, we saw our sales increase.”
Lego mentioned that there was development in all markets, significantly within the Americas and western Europe.
The firm opened 155 shops worldwide final 12 months to achieve 904 places. The vibrant constructing bricks are offered in additional than 130 nations.
Christiansen mentioned 48% of the corporate’s merchandise had been new and that some prime themes included Lego City, “Stars Wars” and Harry Potter.
He additionally highlighted collaborations, together with one with Louis Vuitton to create home windows and retailer shows for the Christmas season tied to the 2 hundredth birthday of the posh style home.
“By doing a partnership with others, we can reach customers in a different way,” he mentioned. “In the case of Louis Vuitton, we hope to reach women, mothers. We do hope to have more girls playing with Lego.”
This 12 months, Lego expects single-digit income development.
Headquartered in Billund, Denmark, Lego has factories on three continents, together with what it says is a brand new carbon-neutral manufacturing unit in Vietnam. There are plans for one more carbon-neutral manufacturing unit in Richmond, Va.
Lego was based in 1932 by Ole Kirk Kristiansen and its identify is derived from the Danish phrases “leg godt,” or “play well.”
