Tag Archives: Financial Report

LEGO Announces 2018 Financial Results

financial-results

LEGO has announced the results of the 2018 financial year and the headline is that 2018 was a year of stabilisation and modest growth.

Revenue for the full year increased 4% to DKK 36.4 billion compared with DKK 35.0 billion in 2017. Excluding the impact of foreign currency exchange, revenues for the full year increased 7% compared with 2017.

China continues to be a big growth area for the LEGO Group. Established markets delivered single-digit revenue growth in 2018, while China achieved double-digit revenue growth. This growth in China helps explain why LEGO decided to create an exclusive for that market.

The growth in China was due to the company expanding its presence through traditional retail channels, branded stores, e-commerce and digital platforms.

The LEGO Group’s operating profit amounted to DKK 10.8 billion in 2018 an increase of 4% against DKK 10.4 billion in 2017. The operating margin was 29.6% in 2018, unchanged from 2017.

Overall these are good figures and they show that the company isn’t likely to disappear any time soon.

The top selling themes in 2018 were City, Technic™, Star Wars™, Friends and NINJAGO. Harry Potter, Jurassic World and Creator also performed strongly.

You can find more information including full financial statements here.

LEGO Announces 2016 Financial Results

LEGO Annual Report 2016

The LEGO Group last night held a press conference to announce their 2016 financial results and spoiler alert – they made a lot of money.

The two key takeaways are revenue and net profit – both of which increased. Revenue for the full year increased by 6.0 percent in DKK to DKK 37.9 billion compared with DKK 35.8 billion for 2015. Net profit for the full year was DKK 9.4 billion compared with DKK 9.2 billion in 2015. That profit equates to nearly 1.8 billion Australian dollars.

Statements from the new CEO revealed that sales in the US were flat despite a significant increase in marketing spend in the second half of the year. It will be interesting to see if the US continues to underperform in the future and the impact that an import tax from the Mexican factory may have (if it happens).

The LEGO Group’s profit increased even with a continued focus on global growth. DKK 2.9 billion was invested in property and building production capacity, including a new factory in China, and a net additional 1,760 people joined the organisation.

The revenue for 2016 was helped by a great lineup of products with 335 new products introduced. Revenue growth was driven by strong performance from core themes including City, Ninjago, Friends, Technic and Creator.

The report also reveals that LEGO employs an incredible 16,836 employees. This is an average figure for 2016 that factors in staff turnover and temporary positions. According to the full report employee expenses actually outweighed the cost of raw materials and consumables used.

As a LEGO fan it is a good thing that the company is doing so well as it means there is plenty of money to invest in new and innovative products.

For those of you that love reading financial statements you can view a copy of the annual report here.

Via https://www.lego.com/en-us/aboutus/news-room/2017/march/annual-results-2016/