LEGO has enjoyed a banner year in terms of revenue, with net profit rising to $2b and sales up 12%, with revenue growing 17% to $9.2b. That’s a profit increase of 5% on 2022, not bad for a company celebrating its 90th anniversary.
Lego increased prices on about a quarter of its products, due to inflation, but Niels added: “Low-cost products were not affected. The increase was chiefly on our expensive products. Despite that, we saw our sales increase.”
Continued strong demand for its product range, among both children and adults has helped maintain sales, and Niels said this was partly down to the breadth of the product that Lego currently offers. “People are buying more,” he said. “It’s not price increases driving growth, if anything it’s people buying bigger and more complicated sets. It’s a combination of volume and value.”
Lego’s diverse product line has been designed to hit on a variety of “passion points” which have helped its strong performance in 2022. These products range from themed sets of popular licences such as Star Wars and Harry Potter to botanical flower arrangements and muscle car replicas. Last year, new products made up 48% of the company’s range as part of the company’s strategy for having fresh and relevant sets for all consumers. Lego has also worked to diversify its price points, as inflation and uncertainty negatively affected consumers over the past year, offering sets for all budgets.
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 in more than 130 countries. Around half of the new openings were in China, and Lego is planning to add 145 additional locations worldwide in 2023.
