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In the first half of 2024, Lego saw a significant increase in sales, with a 13% growth to 31 billion Danish krone, equivalent to $4.65 billion. This rise in sales can be attributed to the popularity of Lego Icons, Lego Creator, and the successful partnership with Epic Games’ Fortnite.
CEO Niels Christiansen highlighted the positive impact of these factors on the company’s performance. He mentioned that last year, there was a trend of buyers opting for cheaper kits while still purchasing the same quantity. However, this year has seen a reversal of that trend, with an increase in volume leading to overall growth.
Even in the face of economic challenges such as inflation, Lego has managed to attract customers with its diverse range of products for both children and adults. These include new design options for building flowers, succulents, artwork, animals, as well as popular themed kits like Harry Potter and Star Wars.
Compared to its competitors, Lego has fared relatively well in the toy sector. While Mattel experienced a slight dip in net sales and Hasbro saw a significant revenue decline, Lego’s growth stands out in the industry. The company’s success can also be attributed to its focus on sustainability.
Christiansen emphasized the importance of sustainability in Lego’s operations. This year, the company has significantly increased the use of renewable and recyclable elements in its bricks compared to the previous year. This move is seen as a milestone in Lego’s commitment to environmental responsibility.
Despite challenges in the Chinese market, Christiansen expressed optimism about the long-term potential of the region. While sales in China may be stagnant currently, Lego is continuing its expansion efforts in the country. The company opened 40 new Lego shops in the first quarter, with half of them located in China. In the second half of the year, an additional 20 shops are scheduled to open in China out of a total of 60 new openings.
As Lego looks towards the future, the company aims to source at least half of its raw materials from sustainable sources in the coming years. This commitment to sustainability aligns with Lego’s reputation as a responsible and forward-thinking brand in the toy industry.
Overall, Lego’s strong performance in the first half of 2024 demonstrates the company’s resilience and ability to adapt to changing market conditions. With innovative products, a focus on sustainability, and strategic partnerships, Lego continues to be a leader in the toy industry.
