Lego is celebrating a boost in post-pandemic sales following the launch of various products aimed at both kids and adults, a recent CNBC report states.
“People are buying more,” CEO Niels Christiansen said. “It’s not price increases driving it, if anything it’s people buying some of the bigger and more complicated sets. It’s a combination of volume and value.”
According to the privately held Danish toy maker, its revenue sum for 2022 spiked by 17%, reaching 64.6 billion Danish krone, which equates to $9.28 billion.
Although its sales accelerated amid the pandemic, “the company wasn’t immune to macroeconomic pressures during the year including the war in Ukraine, COVID-19 restrictions and increased material, shipping and energy costs,” a recent CNBC report states.
Despite the challenges, the toy company maintains its astronomical market share. Its net profit for the full year reached 13.8 billion Danish krone, or about $2 billion, reflecting a 4% increase from 2021.
The company has also prioritized the development of its eclectic selection of building sets, and began taking steps to address the negative impact of inflation and uncertainty on consumer spending by diversifying its price points, Christiansen said. New products made up approximately 48% of Lego’s 2022 portfolio.
The company continues maximizing its profit by limiting some of the shipping costs with new manufacturing plants neighboring key markets. In addition to this, the company has expanded its global presence, and operations in China. It has opened 155 stores globally, with roughly half of them being located in that region, and plans to add another 145 locations this year.
“Heading into the new year, Lego is looking to continue to snap up market share and to add to its 2022 revenue gains,” the report states. “Christiansen said the company expects growth for the full year to reach high single digits.”