In the first half of the year, the LEGO Group saw a massive increase in sales, profit and revenue – with operating profit up by 104%.
Today the LEGO Group shared the company’s first half earnings for 2021, up until June 30. As it is a private company, the full data isn’t made available to shareholders, but the company does release some figures.
Revenue grew by 46% to DKK 23 billion (approx. £2.7 billion) compared with the same period in 2020, with consumer sales growth of 36%. Operating profit was DKK 8 billion (approx. £924 million), an increase of 104% compared with the first six months of 2020.
‘We are very pleased with the progress we made across all areas of the business during the first half. Our performance was driven by strong demand for our portfolio, which has attracted new builders to the LEGO brand.,’ says CEO, Niels B. Christiansen. ‘Our year-on-year growth benefited from fewer COVID-related restrictions compared with 2020 as our factories operated uninterrupted and the majority of retail stores re-opened.
‘We also saw the benefits of multi-year investments in e-commerce, product innovation and a global supply chain network. Our strong financial performance now allows us to accelerate strategic investments in sustainability and digitalisation.’
It seems that the strong growth of 2020 has continued, but with fewer impediments to operations (many physical retails stores were closed globally, factories had to close on several occasions).
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‘We are especially grateful for our amazing team. Despite all the challenges and uncertainties of the past six months, they worked extraordinarily hard to bring play to more families around the world.,’ adds Christiansen.
Christiansen acknowledges though that the impact of coronavirus has increased demand for LEGO products: ‘As we look ahead to the second half of 2021, we continue to see strong demand for our products. Longer-term, we expect top-line growth to stabilise to more sustainable levels as people return to pre-pandemic spending patterns. This trend, combined with our plans to accelerate re-investments into the future of the business, is expected to result in more normalised profit levels moving forward.
‘Our investments are designed to create a sustainable future for the business and advance our mission to have a positive impact on children and the world they will inherit. Digitalisation and sustainability will have an especially critical play in this, and we are extremely pleased with the progress our teams are making in these areas. We will also continue to develop our play experiences and brand expression so that LEGO play is diverse and welcoming for all.’
Paper bags will begin to replace plastic bags in LEGO set boxes from 2022, as part of the company’s goal to have all packaging made from sustainable materials by 2025.
‘The single biggest motivating force for everyone at the LEGO Group is knowing we can have a positive impact on future generations,’ says the CEO. ‘Whether it’s in times of acute need or helping a child develop new skills that will last a lifetime, LEGO play and the LEGO brand can, and will, make a difference. We are proud to be in this position and are committed to doing all we can to continue to inspire and develop the builders of tomorrow.’