The LEGO Group Rocks Earnings Season with 14% Sales Growth

The LEGO Group, one of the few privately held major toy companies to disclose earnings, had a phenomenal first half of the year marked by double-di، ،ns.

LEGO reported a 13% increase in revenue, rea،g $4.64 billion USD (DKK $31.0 billion), for the first half of the year, driven by strong consumer sales and an expanding market share. Consumer sales grew 14%, fueled by high demand for the company’s diverse portfolio. The company outperformed the broader toy market, ،ning market share.

Looking closer at the numbers, operating profit surged by 26% to $1.21 billion USD (DKK 8.1 billion), supported by robust top-line growth, despite increased spending on strategic initiatives as planned. Net profit also rose by 16%, totaling $897 million USD (DKK 6.0 billion).

Free cash flow reached $449 million USD (DKK 3.0 billion), bolstered by the company’s strong performance. Investments continued in the construction of new factories and the expansion of existing facilities and offices.

In its sustainability efforts, LEGO reported that 30% of all resin purchased in the first half was certified m، balance, translating to an estimated average of 22% renewable and recycled materials used in the ،uction of LEGO bricks.

Much of its success can be attributed to the fact that LEGO constantly reshapes itself to adapt to evolving consumer preferences and business needs. Its owned retail business, including physical stores and e-commerce, continues to grow, and that footprint powers ،nd awareness that results in sales for other retailers. Additionally, the company attracts new customers of all ages by offering innovative themes that work outside of the building and construction aisle, including high-end vehicle models, and botanicals.