Lego posts boost in profit, sales as it raised some prices
Lego says profits increased by 5% in 2022 from a year earlier and sales roles even as it raised prices on higher-ticket toys
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Lego said Tuesday that profits increased by 5% in 2022 from a year earlier and sales rose even as it raised prices on higher-ticket toys.
The Danish toy company said net profit rose to 13.8 billion kroner ($2 billion) from 13.3 billion kroner. Sales were up 12%, while revenue grew 17% to 64 billion kroner ($9.2 billion).
CEO Niels B. Christiansen called 2022 “a milestone year” as the privately held company celebrated its 90th anniversary.
We "landed the year beyond expectations on the back of exceptional growth last year and despite challenging market conditions,” he said.
With inflation growing, Lego increased prices on about a quarter of its products, Christiansen said.
"The low-cost products were not affected. The increase was chiefly on our expensive products," he said. “Despite that, we saw our sales increase.”
Lego said that there was growth in all markets, particularly in the Americas and Western Europe.
The company opened 155 stores worldwide last year to reach 904 locations. The colorful building bricks are sold in more than 130 countries.
Christiansen said 48% of the company's products were new and that some top themes included Lego City, “Stars Wars” and Harry Potter.
He also highlighted collaborations, including one with Louis Vuitton to create windows and store displays for the Christmas season tied to the 200th birthday of the luxury fashion house.
“By doing a partnership with others, we can reach customers in a different way," he said. "In the case of Louis Vuitton, we hope to reach women, mothers. We do hope to have more girls playing with Lego.”
This year, Lego expects single-digit revenue growth.
Headquartered in Billund, Denmark, Lego has factories on three continents, including what it says is a new carbon-neutral factory in Vietnam. There are plans for another carbon-neutral factory in Richmond, Virginia.
Lego was founded in 1932 by Ole Kirk Kristiansen and its name is derived from the Danish words “leg godt,” or “play well.”
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.