Lego reported a slight increase in revenue amid a weak market – Kommersant

Today, March 12, Lego, a Danish manufacturer of children’s construction sets and toys, reported, that at the end of 2023 its revenue reached 65.9 billion Danish kroner ($9.65 billion), which is only 2% more than a year earlier. This is the lowest increase in the last seven years. At the same time, the company’s net profit decreased by 5% to 13.1 billion Danish kroner ($1.92 billion).

The company attributed the worsening performance to lower demand in the toy market following a boom during the pandemic. This global trend has been superimposed on a reduction in demand in China, where the economy has still not been able to fully recover. “Chinese consumers have significantly reduced their spending,” said Lego CEO Niels Christiansen.

However, despite last year’s weak performance, Lego managed exceed the sales dynamics of the global toy market, which decreased by 7%.

Against the background of declining sales of competitors, Lego was able to increase its market share. The most popular series last year were the traditional hits Lego City and Lego Technic, as well as relatively new series dedicated to Harry Potter and Star Wars. The company also announced the successful launch of the Lego Fortnite line, dedicated to the computer game of the same name.

Evgeny Khvostik