Lego posts boost in profit, sales as it raised some prices
FILE - A LEGO set made of its blocks featuring K-pop band BTS, is shown during a publicity event at a store in Seoul, South Korea, on March 2, 2023. Danish toy company Lego said Tuesday March 7, 2023 that its net profit increased by 5% in 2022 coming in at 13.9 billion kroner ($2 billion), up from 13.3 billion kroner a year earlier. (AP Photo/Lee Jin-man, File)
COPENHAGEN, Denmark (AP) — Lego said Tuesday that profits increased by 5% in 2022 from a year earlier and sales rose even as it raised prices on higher-ticket toys.
The Danish toy company said net profit rose to 13.8 billion kroner ($2 billion) from 13.3 billion kroner. Sales were up 12%, while revenue grew 17% to 64 billion kroner ($9.2 billion).
CEO Niels B. Christiansen called 2022 "a milestone year" as the privately held company celebrated its 90th anniversary.
We "landed the year beyond expectations on the back of exceptional growth last year and despite challenging market conditions," he said.
With inflation growing, Lego increased prices on about a quarter of its products, Christiansen said.
"The low-cost products were not affected. The increase was chiefly on our expensive products," he said. "Despite that, we saw our sales increase."
Lego said that there was growth in all markets, particularly in the Americas and Western Europe.
The company opened 155 stores worldwide last year to reach 904 locations. The colorful building bricks are sold in more than 130 countries.
Christiansen said 48% of the company's products were new and that some top themes included Lego City, "Stars Wars" and Harry Potter.
He also highlighted collaborations, including one with Louis Vuitton to create windows and store displays for the Christmas season tied to the 200th birthday of the luxury fashion house.
"By doing a partnership with others, we can reach customers in a different way," he said. "In the case of Louis Vuitton, we hope to reach women, mothers. We do hope to have more girls playing with Lego."
This year, Lego expects single-digit revenue growth.
Headquartered in Billund, Denmark, Lego has factories on three continents, including what it says is a new carbon-neutral factory in Vietnam. There are plans for another carbon-neutral factory in Richmond, Virginia.
Lego was founded in 1932 by Ole Kirk Kristiansen and its name is derived from the Danish words "leg godt," or "play well."