Lego reports highest-ever revenue in its 85-year history

LegoSomewhat driven by strong growth in Europe and Asia and its new physical/digital play product Nexo Knights, Denmark-based The Lego Group has reported its highest-ever yearly revenue in its 85-year history.

Revenue of the company for the year 2016 rose by 6 per cent to US$5.4 billion (DKK 37.9 billion) versus US$5.1 billion (DKK 35.8 billion) in 2015. Excluding foreign exchange impacts year-on-year revenue growth of Lego increased by 5.5 per cent.

The majority of Lego’s major markets witnessed a growth last year led by high single-or double-digit increases in all European markets and double-digit growth in the Chinese market.

Its sales in the US, however fell year-on-year despite a significant marketing spend in the second half of the year. Japan also saw a small decline in sales.

Lego’s operating profit, meanwhile, increased by 1.7 per cent from US$1.7 billion (DKK 12.2 billion) in 2015 to US$ 1.8 billion (DKK 12.4 billion) in 2016. Net profit for the full year came in at US$1.33 billion (DKK 9.4 billion) versus US$1.31 (DKK 9.2 billion) the previous year.

Continuing its run of making 60 per cent of its launches new products every year, the company introduced more than 335 new items in 2016 with core brands Lego City, Lego Ninjago, Lego Friends, Lego Technic, Lego Creator and Lego Nexo Knights leading the growth.

As for The Lego Group’s investment in sustainable global growth and talent, it invested US$0.4 billion in property and building production capacity including a new factory in China, and a net additional 1,760 people joined the company.

Lego also balanced 90 per cent of its energy in 2016 putting it on track to reach its 2020 goal of balancing 100 per cent of its global energy consumption with energy produced by its own renewable sources three years ahead of schedule.

The toy company expects to continue its good fortunes this year with newly announced brands Lego Worlds, Lego Life and Lego Boost.