Gifts / Sports & Toys

According to Huacheng Import and Export Data Observation, on March 7, 2023, Lego Group released its 2022 annual financial report. According to the report, Lego Group continued to develop well, with its revenue increasing by 17% year-on-year in 2022 to DKK 64.6 billion (including the impact of foreign currency exchange rate), and its global market share increased.

According to Huacheng Import and Export Data Observation, Lego Group's performance highlights in 2022 mainly include:

Revenue increased by 17% to DKK 64.6 billion (about RMB 64.18 billion)

Operating profit increased by 5% to DKK 17.9 billion (about 17.78 billion yuan); Net profit increased by 4% to DKK 13.8 billion (about 13.71 billion yuan)

Free cash flow reached DKK 9.3 billion (about RMB 9.24 billion)

(The above RMB amount is converted according to the exchange rate on March 7, 2023)

01 Double-digit growth has exceeded expectations, and the driving effect of new products is obvious

From the performance of Lego in the past five years, the three main indicators of revenue, operating profit and net profit have achieved continuous growth, showing strong profitability.

Niels B. Christiansen, CEO of Lego Group, was very satisfied with the performance. He said: "Although the market environment is full of challenges, we still achieved double-digit revenue growth, and on the basis of such excellent growth last year, this has exceeded expectations."

Lego Group said that the broad and diversified product portfolio was the main reason driving growth. Of the products sold last year, 48% were new products, making it one of the years with the largest number of new products released. The most popular theme series in 2022 includes Lego ® City Group, Lego ® Icons series, Lego ® Mechanical group, Lego ® Star Wars ™ Series and Lego ® The Harry Potter series has successfully attracted fans of all ages and hobbies.

In the Chinese market, Lego Group released a number of new products with Chinese cultural elements last year, including Lego ® The new products of Wukong Xiaoxia series - Qitian Dasheng Ultimate Metamorphosis Machine, as well as new products that cater to the consumption demand of the Lunar New Year, such as Lucky Double, New Year Float, and Cash Tree, many of which have become best-selling products.

02 Retail sales increased by 12%, brand retail stores accelerated the landing

Lego Group's retail sales increased by 12% in 2022, with growth in all major markets around the world, especially in the Americas and Western Europe.

From the perspective of offline channels, in 2022, Lego Group will open 155 brand retail stores, and the total number of global brand retail stores will reach 904.

At present, the total number of Lego brand retail stores opened by Lego Group in China has increased from 60 in 2018 to more than 380, and the number of cities covered has also expanded from 18 to more than 100. According to the news released on the WeChat official account of the "Lego Group News Center", the number of brand retail stores it plans to open in Chinese Mainland will reach 80 in 2023, which is reported by Huacheng Import and Export Data Observation.

03 Return on digital investment Product innovation Enhance interactive experience

In 2022, Lego Group will accelerate the investment in digital transformation and benefit from it, including improving the online shopping experience of consumers and partners, and providing consumers with a richer collage experience. In 2022, the number of LEGO Builder applications downloaded reached 13.6 million, up 42% from 2021.

Lego Group also attaches great importance to the interaction and integration of physical assembly and digital platform in new product design. Take the Lego City Group 60354 spacecraft Mars exploration kit released in June 2022 as an example. Children can download games through LEGO Building, play the leading role in adventure stories, and use physical Lego blocks to complete the space exploration task on the screen. After completing all tasks, the system can replay videos in any order they choose. These interactive activities combined with digital games and physical building blocks provide rich development space for future product innovation. Huacheng Import and Export Data Observation Report.

In addition, new progress has been made in the expansion projects of three factories under Lego Group. In January 2022, Lego announced to expand its factory business in Jiaxing, China, to support the long-term development in the Chinese market. In June, it also announced the plan to open its second carbon neutral plant in Virginia, which provides a strong guarantee for its continued expansion of global market share.

Despite the impact of raw material, freight and energy cost inflation, Lego Group still achieved excellent performance in 2022. Looking forward to 2023, Lego Group is expected to achieve single-digit revenue growth, continue to expand global market share, and continue to accelerate strategic project investment, Huacheng Import and Export Data Observation Report.