Lego posted a whopping 17% increase in sales in the first half of 2022. After an already exceptional 2021 and politically uncertain six months, this is better than the 90-year-old toy manufacturer itself dared to expect.
Global market share grows
Although Lego is celebrating its 90th anniversary this year, demand for the toy bricks remains exceptionally high. Total sales rose 17% to 27 billion Danish kroner (3.6 billion euros) in the first half of 2022, while consumer sales rose 13%. That was significantly faster than the overall toy industry, which also grew global market share.
“We are very pleased with our performance, which is above expectations after an exceptional 2021. Despite global uncertainties, we continued to achieve higher consumer sales and double-digit revenue growth,” said CEO Niels Christiansen. Operating profit remained stable at 7.9 billion Danish kroner (1 billion euros) as the group managed to offset cost inflation.
1,800 digital employees
After Lego reached its maximum capacity in 2021 due to exceptional growth, the group focused this year on expanding production capacity and building “healthier” inventory levels. For the second half of 2022, Christiansen still sees strong demand, but in the longer term, the CEO believes sales growth will normalise. “We will also continue to reinvest in our business and accelerate initiatives such as product innovation, digitalisation, production capacity, our retail network and sustainability to maintain momentum.”
The company expanded its global retail network with 66 new Lego shops in the first six months, including 46 in China. This brings the number of shops worldwide to 833. In June, Lego opened another digital office in Copenhagen, while its global digital team grew by almost 40 per cent in the first six months of 2022. Over a three-year period, the group aims to triple that number to 1,800 employees worldwide.