Lego has experienced remarkable growth in 2024, achieving nearly 10 billion euros in revenue despite a stagnant toy market. CEO Niels Christiansen highlighted a 13% rise in sales and a 5% increase in net profit to 1.8 billion euros, attributing success to diverse product offerings and strategic partnerships. The company plans to expand further, with a new U.S. factory set to open by 2027. Lego’s commitment to sustainability is evident, with half of its brick materials sourced sustainably and a 68% increase in environmental investments.
Lego’s Remarkable Growth in a Challenging Toy Market
The renowned Danish company Lego, recognized as the world’s leading toy manufacturer, has remarkably thrived amidst a sluggish toy industry in 2024. Their revenue has soared to an astounding nearly 10 billion euros. According to CEO Niels Christiansen, “We have products that excite many different consumer groups, and that has worked worldwide,” emphasizing a significant 13% rise in sales despite a stagnant global market.
The net profit also saw an impressive increase of 5%, reaching 1.8 billion euros. The company’s strategic approach, which has involved numerous partnerships and franchises in recent years, appears to be paying off handsomely.
Plans for Expansion and Future Growth
Following this successful year, the family-owned company, which is not publicly traded, remains optimistic about 2025, even amidst geopolitical uncertainties and potential tariff challenges. “That doesn’t keep me awake at night,” Christiansen expressed, noting, “like any CEO, I prefer free trade.” He further recalled that this is not the first time the company has faced such fluctuations and emphasized their ability to remain calm and not overreact.
Lego currently operates a manufacturing facility in Mexico for the American market and is in the process of establishing a new factory in the United States, which is expected to be operational by 2027. For Christiansen, the priority lies in sustaining Lego’s upward momentum and expanding their market share, stating, “Increasing market share is much more important than knowing whether we will have tariffs or not.”
In a toy market that has seen contraction, Lego’s success story stands out. Their direct-to-consumer sales surged by 12% last year, significantly eclipsing the overall toy market, which declined by 1%. “In a market that, over the past five years, has not progressed or has progressed very little, we have increased by about 12, 13, 14% each year,” noted Christiansen.
The success of franchises like Lego Star Wars and Harry Potter, along with partnerships with major players such as the publisher of Fortnite and Formula One, keeps consumer interest high. In 2024, Lego showcased a product portfolio of 840 items, with 46% being brand-new offerings. “The advantage we have with this strong Lego brand is that most other brands would really like to work with us,” emphasized the CEO.
The company’s global appeal is evident, with stronger demand noted in the Americas, Europe, and the Middle East compared to Asia, particularly China, where Lego has heavily invested in recent years. Christiansen remarked, “In the United States, we have gained more shelf space in stores and we have more consumers excited about the Lego brand, so we can afford to take a few years to bring China back to growth.”
Additionally, Lego is committed to sustainability, striving to make its plastic bricks environmentally friendly. The company reported that half of the materials used in their bricks are sourced sustainably. Although specific details about their environmental initiatives are not disclosed, Lego claims to have boosted its investments in sustainability by 68% last year compared to 2023.