Lego warned that the bottom line of its business would continue to be under pressure in 2019.
In 2023, the Danish plastic brick manufacturer, founded in 1932, and still family-controlled, posted revenues of 65.9 (£7.55billion), up by 2 percent from last year. However, net profits fell to 13.1billion, a 5 per cent drop.
Lego remains popular in spite of the changing toy market, which is driven by smartphones and videogames. Niels Christiansen said that Lego was pleased with its performance, given the fact that 2023 marked the worst toy market for more than 15-years.
The company’s “strong momentum” in the last quarter of 2023 was boosted by the spending that took place in the lead-up to Christmas.
Lego sales increased by 4 percent in 2023 compared to’s competitors. The United States, Central and Eastern Europe and Asia were the main drivers of this increase. It was however offset by a bad performance in China where sales dropped due to “challenging conditions”.
Lego has made significant investments in the opening of new stores over the past few years. In 2023, the company opened more than half its stores in China.
The company has increased its capacity through investments in new and existing factories, as well as offices.
Niels Christiansen said that he was satisfied with the performance of Lego in 2023
Lego’s partnership with Epic Games, the maker of Fortnite, which released a Lego-branded video game, also boosted sales. Lego’s best-selling products include popular themes like Star Wars, Harry Potter, and Technic.
Since the outbreak of the pandemic in 2010, the company has seen a strong increase in sales, which grew by 27 percent in 2021 and another 17 percent in 2022. Last year, consumers reduced their discretionary spending.
Lego outperformed rivals Mattel, Hasbro and other toy manufacturers. Mattel’s revenues in 2023 were $5.4 billion (£4.23 billion ) and Hasbro’s sales dropped by 15% to $5 billion (3.91 billion USD).