Lego UK Defies Market Downturn to Achieve Record £500 Million Pounds in Sales

The British arm of Danish toy manufacturer Lego has achieved a remarkable milestone, surpassing £500 million in sales for the first time, despite challenging market conditions. The Berkshire-based division reported a 12% increase in revenue to £502 million for the year ending December, marking a significant achievement in the face of broader market decline and inflationary pressures.

The company’s profit before tax soared to £42.98 million, up from £24.2 million in the previous year. Net profits demonstrated a dramatic turnaround, reaching £35.5 million compared to a £4.5 million loss in the prior period, with the company noting that historic tax issues have been resolved without impact on future earnings.

Success has been driven by strategic licensing partnerships and innovative product launches. The Lego Star Wars: Rebuild the Galaxy miniseries on Disney+ proved particularly successful, while new product lines featuring Lilo and Stitch have positioned the company for continued growth. The organisation projects single-digit revenue expansion in the current financial year.

This performance is particularly noteworthy given the global toy market’s 1% decline last year, following a 7% drop in 2023. Major competitors have struggled, with Mattel recording a 1% sales decrease and Hasbro experiencing a substantial 17% revenue decline following its media division divestiture.

Lego UK, employing 1,689 staff, has maintained a conservative approach to dividend distribution, choosing not to issue payments to its Danish parent company for the second consecutive year. The last dividend payment was £20 million in 2022.

The broader Lego Group reported impressive global results, with annual revenue increasing by 13% to DKr74.3 billion (£8.4 billion), driven by strong performance across the Americas, Europe, and the Middle East. Net profits rose 5% to DKr13.8 billion, reinforcing the company’s position as the world’s leading toymaker.