Lego has achieved record sales as the toymaker said it was ahead of a shrinking market and working hard to “stay relevant” amid new partnerships with Nike and Formula 1.
The Danish firm said its revenue rose 13% to 74.3 billion crowns (9.97 billion euros) in 2024, despite the global toy industry contracting 1% amid a challenging economic environment.
The company's operating profit increased by 10% to CZK 18.7 billion (EUR 2.5 billion) compared to the previous year.
The increase in sales was driven by demand in the American, European and Middle Eastern markets, where the company's product range included 840 items during the year.
The Star Wars and Harry Potter sets were the top sellers, as was the Lego Icons line featuring Pac-Man and Lamborghini sets. In addition, a new botanical collection attracted new customers.
In late 2023, Lego partnered with Fortnite to release a video game that the company says has attracted around 87 million players and inspired the creation of physical sets inspired by the game.
CEO Niels B. Christiansen noted that the company is actively working to adapt to the changing world of entertainment, as children increasingly prefer mobile games, including developing an app aimed at teenagers.
Some age groups, particularly 9- to 12-year-olds, “tend to mature a little earlier and become interested in what's popular on social media,” he said.
Growing interest in Formula 1 has prompted Lego to partner with the racing team, with new sets expected to be released this year. A collaboration with sports brand Nike is also in the works.
Mr Christiansen added that the brand collaborations reflect a desire to remain “super relevant”, stressing that the company “is aware of these changes and is trying to be at the centre of them – even leading them”.
At the same time, the CEO acknowledged that the threat of tariffs from US President Donald Trump was another reason for the global company to “continue to invest forward” in every region where it operates, after upgrading production facilities in Mexico and China and building new plants in Vietnam and the US.
However, Mr Christiansen said he was “not losing sleep over tariffs or Mexico” and said businesses would not “panic” over political factors but would wait for clarity on the possible long-term impact of the measures.
Sourse: breakingnews.ie
