Celebrating its 90th year, the LEGO Group also celebrate a superb first half of sales for 2022 with consumer sales rising by 13%, a promising figure that points to a healthy immediate future for the toy superpower.
The Lego Group has reported its earnings for the six months ending 30th June, 2022. Revenue for the period grew 17% to DKK 27b compared with the same period in 2021, driven by strong demand. Consumer sales grew 13%, contributing to global market share growth.
The strong revenue growth and free cash flow allowed the Lego Group to significantly accelerate strategic initiatives and offset cost inflation on raw materials, energy and freight while keeping operating profit stable at DKK 7.9b.
In the first half of 2022, the Lego Group focused on expanding manufacturing capacity and building healthier inventory levels while increasing productivity following an extended period of exceptional growth rates and maxed out capacity in 2021.
During the first six months of 2022, consumer sales grew in all market groups, with especially strong performances in the Americas, Western Europe and Asia Pacific. The growth was driven by the continued demand for the company’s extensive and diverse product portfolio. This year’s portfolio is the largest on record and caters for builders of all skill levels and ages.
Lego’s strategic growth initiatives drive relevance for a digital future. In April, the Lego Group announced a long-term partnership with Epic Games which will see the two companies join forces to create fun, safe digital experiences for kids in the metaverse and inspired by the endless possibility of the Lego brick.
The Lego Group made progress against its ambition to make its packaging from sustainably sourced materials by the end of 2025. In the second half of 2022, it will begin to roll out paper-based packaging in Lego boxes in Europe.
In June, the company announced plans to open its second carbon-neutral run factory in Virginia, US, in addition to the factory announced in Vietnam late last year. Both sites’ energy requirements will be matched by energy from onsite renewable sources.
Lego opened 66 new stores in the first half, which takes the number of stores globally to 833.
