Gifts / Sports & Toys

According to Huacheng Import and Export Data Observation, on March 7, 2023, LEGO Group released its 2022 financial report. The report shows that LEGO Group continues to maintain a good development trend, with revenue increasing by 17% year-on-year in 2022, reaching DKK 64.6 billion (including the impact of foreign currency exchange rates), and global market share has increased.

According to Huacheng Import and Export Data Observation, the main highlights of LEGO Group's performance in 2022 are:

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

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

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

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

01 Double digit growth surpasses expectations, with significant new product driving effect

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

Niels B. Christiansen, CEO of LEGO Group, is very satisfied with the performance. He said, "Despite the challenging market environment, we still achieved double-digit revenue growth, and this is beyond expectations after achieving such excellent growth last year

LEGO Group stated that a broad and diverse product portfolio is the main driving factor for growth. Last year, 48% of the products sold were new, making it one of the years with the highest number of new product releases. The most popular theme series for 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 multiple new products with rich Chinese cultural elements last year, including LEGO ® The new product of the Wukong Xiaoxia series - Qitian Dasheng Ultimate Metamorphosis mecha, as well as new products that cater to the consumption needs of the Chinese New Year, such as lucky luck pairs, New Year floats, and cash trees, many of which have become best-selling products.

02 Retail sales increase by 12%, brand retail stores accelerate landing

LEGO Group's retail sales increased by 12% in 2022, achieving growth in major global markets, with particularly strong performance in the Americas and Western Europe.

From the perspective of offline channels, in 2022, LEGO Group opened 155 new brand retail stores, bringing the total number of global brand retail stores to 904.

At present, the total number of LEGO brand retail stores opened by LEGO Group in China has increased from 60 in 2018 to over 380, and the number of cities covered has also expanded from 18 to over 100. According to the news released on the WeChat official account of the "Lego Group News Center", the number of new 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 Digital investment returns product innovation enhances interactive experience

In 2022, Lego Group will accelerate its Digital transformation investment and benefit from it, including improving the online shopping experience of consumers and partners, and providing consumers with a richer tie-in experience. In 2022, the download volume of LEGO Builder application reached 13.6 million, an increase of 42% compared to 2021.

LEGO Group also attaches great importance to the integration of physical assembly and digital platform interaction in new product design. Taking the LEGO City Group 60354 spacecraft Mars Exploration Kit released in June 2022 as an example. Children can download games through LEGO Building, play protagonists in adventure stories, and use physical LEGO blocks to complete space exploration tasks on the screen. After completing all tasks, the system can replay videos in any order they choose. These interactive activities that combine digital games with 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 Group announced the expansion of its factory business in Jiaxing, China to support long-term development in the Chinese market. In June, it also announced the plan to open its second carbon neutrality plant in Virginia, which provides a strong guarantee for its continuous expansion of global market share.

Despite being affected by inflation in raw material, freight, and energy costs, LEGO Group still achieved excellent performance in 2022. Looking ahead 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, as reported by Huacheng Import and Export Data Observation.