• Fri. Mar 24th, 2023

Covid lockdowns fuel surge in Lego profits

ByEmma Wolukau-Wanambwa

Mar 8, 2022

Danish toymaker reports 27% rise in profit and increased global market share but warns growth will slow

Lego increased sales by more than a quarter last year while profits jumped by nearly a third as families turned to its plastic bricks for entertainment during pandemic lockdowns. The Danish toymaker said it had gained market share around the world in 2021 but warned that growth would slow to less than 10% this year as schools and workplaces reopen.

Niels Christiansen, the chief executive of Lego, said: “In 2021 we saw the benefits of strategic investments made over the past three years to innovate our portfolio, expand and evolve our retail experiences and increase capacity within our global supply chain network.”

As it celebrates its 90th year in 2022, Lego said sales reached Dkr55.3bn (£6.2bn) while profits hit Dkr17bn (£1.9bn), despite increased freight and raw material costs for its plastic bricks, as it recorded a big shift to selling directly to consumers online. Bestsellers included Lego City, which includes child-friendly sets to make train stations or helicopters, as well as Harry Potter, Star Wars and Lego Technic, all of which appeal to adults as well as youngsters.