The Lego results significantly outpaced the toy industry and grew market share. Continued strategic investments to drive growth while further accelerating sustainability initiatives.
The Lego Group released earnings for the first half of 2024 on Wednesday 28 August. The company delivered double-digit growth on the top and bottom line and significantly outpaced the toy industry, gaining market share. Top-line growth was driven by strong demand for its large and diverse portfolio, especially in Americas and Europe, and excellent execution in all markets. At the same time, the Lego Group continued to increase spending on strategic initiatives to drive short- and long-term growth.
Highlights v H1 2023
Revenue grew 13 percent to DKK 31.0 (GBP 3.5) billion.
Consumer sales grew 14% driven by demand for a strong and diverse portfolio.
Market share grew as the Lego Group continued to significantly outperform the toy market.
Operating profit grew 26% to DKK 8.1 (GBP 0.92) billion driven by strong top-line while spending on strategic initiatives increased as planned in H1. Net profit grew 16% to DKK 6.0 (GBP 0.68) billion.
Free cash flow was DKK 3.0 (GBP 0.34) billion due to strong top-line performance while investments continued in building new factories and expanding facilities and offices.
“Our portfolio continues to be relevant for all ages and interests, and this is driving significant demand across markets. We used our solid financial foundation to further increase spending on strategic initiatives which will support growth now and in the future”
30% of all resin purchased in H1 was certified mass balance, which translates to an estimated average of 22% material from renewable and recycled sources in the raw materials the company uses to make Lego bricks.
Niels B Christiansen, CEO said: “We are very pleased with our strong performance in the first half. We delivered double-digit growth on the top-and bottom-line and made significant progress on increasing the amount of sustainable materials used in our products.”
“Our portfolio continues to be relevant for all ages and interests, and this is driving significant demand across markets. We used our solid financial foundation to further increase spending on strategic initiatives which will support growth now and in the future to enable us to bring learning through play to even more children.”
In the first six months, the Lego Group’s revenue increased by 13% to DKK 31.0 (GBP 3.5) billion compared with DKK 27.4 (GBP 3.1) billion in H1 2023. Consumer sales grew 14% significantly outperforming the toy industry.
Operating profit grew 26% versus H1 2023 to a record DKK 8.1 (GBP 0.92) billion, while the company significantly increased spending on strategic initiatives such as sustainability, retail and digitalisation to support short and long term growth. The Lego Group plans to further accelerate spending on these initiatives in the second half of the year. Net profit grew 16% to DKK 6.0 (GBP 0.68) billion compared with DKK 5.1 (GBP 0.58) billion in the first half of 2023.
Cash flow from operating activities increased 60% to DKK 7.5 (GBP 0.85) billion from DKK 4.7 (GBP 0.53) billion in H1 2023. The company invested significant funds in building new factories and expanding facilities and offices – 25% more than in 2023. This resulted in free cash flow of DKK 3.0 (GBP 0.34) billion against DKK 1.1 (GBP 0.12) billion in H1 2023.
Away from the specific results numbers, it is worth noting that the Lego Group continued to increase the amount of resin purchased from sustainable sources certified under the mass balance principle. By doing this, the company aims to help accelerate the industry’s transition to more sustainable, high-quality materials.
The Group also welcomed the UN General Assembly’s decision to adopt an International Day of Play, which was celebrated for the first time on 11 June 2024.
On the latter, Niels B Christiansen said: “We are proud to have played a role in this important development to put play on the agenda for kids everywhere. More than ever, children need play. Play is universal and taps into their natural enthusiasm and curiosity to learn, helping them to develop essential life skills.”
