Lego Reports Record-Breaking Sales of £4 Billion, With Still Room for Growth

Lego will soon set up a $1.5 billion factory and distribution centre in the US by 2027, marking its seventh factory globally.

Danish toymaker Lego, the industry’s largest, reported record-breaking sales for the first half of the year and continues to capture market share despite global volatility, according to chief executive Niels B. Christiansen.

He stated that the company has consistently outperformed the market and increased its market share. He assures that there is still room for growth.

In the first six months of the year, the global toy market grew 6.9%, while Lego’s market share rose at twice that rate, Christiansen observed.

In the January to June timeframe, the producer of the colorful plastic “bricks” saw a 10% increase in net profit compared to the previous year, reaching $1.39 billion.

Sales increased by 12%, reaching a record 34.6 billion kroner, marking its sixth consecutive rise for the half-year period.

Christiansen noted that, despite global challenges and volatility, their operating model remains very strong.

Unlike its American competitors, Hasbro and Mattel, Lego has no issues with US tariffs, which President Donald Trump raised to a minimum of 10% on imported goods.

The Danish company, which established a new factory in Virginia when its products usually come from a Mexican factory, saw a massive growth in the United States.

Christiansen commented that it is not tariffs that create volatility among market players; in fact, he observes broad-based growth.

He credited the company’s strong performance to its diverse product range, which added 314 new Lego sets in the first half, and the opening of 24 new stores, bringing the total to 1079 globally.

The company suggested that the growth of the company could be due to parents’ wishes to limit children’s exposure to smartphones. This is evidenced by a 12% increase in sales, helped by strong interest in its Botanicals and Formula One-themed sets.

Lego’s impressive sales come as Yoto, a UK-based company specialising in screen-free speakers for children, nearly doubled its sales last year to £94.8 million and expects to reach a profit, which will happen for the first time in 2025.

As social media addiction becomes a significant concern, it ranks as one of the top three fears for parents, along with the climate crisis and war.

Lego reported a 10% rise in net profit to 6.5 billion kroner, with the company signing deals to produce toys linked to the Bluey and Pokémon animated series and launching the “She Built That” campaign to inspire girls to use Lego creatively. The company has achieved success with its Botanicals collection of plant-themed building sets targeted at adults, which is popular around Valentine’s Day and Easter.

The Chief Executive also noted that sales are slowly growing in China. It is great news, as they’ve had a challenging start to 2024. He expects that sales around the world will increase by approximately 9% in the latter half of the year, driven by “strong consumer demand.”

Lego grew rapidly during the COVID-19 pandemic, establishing itself as the largest toymaker in the world, according to market research firm Statista, surpassing Japan’s Bandai Namco, as well as Mattel and Hasbro. Mattel is known for its iconic Barbie and Hot Wheels, while Hasbro is recognized for its board games, including Monopoly, Transformers, and Dungeons & Dragons.

Franchises like Lego Star Wars and Harry Potter, along with collaborations, most notably with the video game Fortnite, have helped strengthen the strong brand image among consumers.

In other news, the company will soon set up a $1.5 billion factory and distribution center in the United States by 2027, marking its seventh factory globally. This year, the group also opened a new factory in Vietnam and expanded its factories in Mexico and Hungary to meet increasing demand.