LEGO Group shows growth despite challenging year for toy industry

Despite a challenging year for the global toy industry, LEGO Group posted a two percent growth in revenue and a four percent spike in consumer product sales in the fiscal year 2023 compared with a year before, with plans to add 40 new stores in China for the long term growths in the market.

The LEGO Group, in its 2023 fiscal report, has grown its revenue to DKK 65.9 billion ($9.65 billion), despite a difficult external operating environment, and outpaced the toy market, growing their market share.

CEO Niels B. Christiansen attributed the strong performance to the diverse product portfolio and its commitment in innovation and investments.

Christiansen said: "We are pleased with our performance given that 2023 was the most negative toy market year in more than 15 years...We significantly outpaced the market, growing our share and proving the appeal of our strong, diverse portfolio and the LEGO system in Play."

Christiansen believes there is significant long-term potential for Lego in China.

"We are on the growth journey in China and are hoping and expecting to get back to growth,"he said. This includes opening new stores across the country, with around 40 additional stores expected in 2024, he said. Consumers still bought Lego sets, but often chose one with smaller price points, he said.

In 2023, the group opened 147 new LEGO branded stores taking the global total to 1,031.

Consumer sales grew four percent in 2023 compared to that of 2022, driven by strong growth in the United States, Central and Eastern Europe.

The company's portfolio was the largest ever with 780 products. New products accounted for around 50 percent of the portfolio.

The LEGO Group also launched innovative new play experiences including LEGO Fortnite, the first release from its partnership with Epic Games which aims to develop fun and safe digital spaces for children and families. The top performing LEGO themes included LEGO Icons, LEGO City and LEGO Technic alongside LEGO Star Wars and LEGO Harry Potter.

The company has continued to invest in expanding and upgrading its manufacturing capacity and capabilities in its factories in Hungary, Mexico and China and is building two new factories in both the United States and Vietnam.

wangzhuoqiong@chinadaily.com.cn