The world’s largest toymaker, LEGO, increased revenues by 13 per cent to DKk43.7 billion (roughly $9.04 billion) in FY20, with operating profits jumping 19 per cent.
It marks the strongest growth rates the Danish toymaker has recorded in five years, according to the likes of Bloomberg and Financial Times, with LEGO noting its growth was buoyed by sales in sets that blend physical bricks with digital Super Mario games.
On top of a revenue increase, operating profits rose to DKk12.9 billion (roughly $2.67 billion), while consumer sales grew 21 per cent for the full year when compared to FY19.
The brand’s global market share grew globally and in its 12 largest countries, with LEGO in 2021 aiming to accelerate its investment in digitalisation across the entire business.
Niels B Christiansen, CEO at the LEGO Group, said: “We are very pleased with these results. They show the timeless relevance of the LEGO brick and learning through play. This performance is also a testament to the passion, creativity and resilience of our people. Despite the challenges of the pandemic, they worked tirelessly to keep the world playing.”
Consumer sales in all market groups grew double digits, with especially strong growth in China, the Americas, Western Europe and Asia Pacific, the LEGO Group said.
Growth in operating profit was driven by strong sales and offset by strategic investments and increased distribution costs associated with shipping products globally following the temporary, enforced closure of manufacturing sites in Mexico and China. Net profit grew 19 percent to DKk9.9 billion, while free cash flow was strong at DKk11.5 billion.
“For the past two years we’ve made large-scale investments in initiatives designed to support long-term growth,” Christiansen said.
“In 2020, we began to see the benefits of these, especially in e-commerce and product innovation. We will further increase investments during the coming year with a continued focus on innovating play, our brand, digitalisation and developing an omnichannel retail network.”
For more information on the LEGO Group’s corporate results for FY20, click here.
Featured image source: iStock/meskolo
