Tag Archives: Financial

The LEGO Group’s 2017 Financial Results Are… Disappointing

LEGO-Group-Annual-Report-2017-1

At a press conference today LEGO have shared the details of their 2017 full year financial results and the numbers are far from impressive. In fact Niels B. Christiansen, the LEGO Group CEO labelled 2017 a challenging year and said that he is not satisfied with the results.

The reports contain a lot of information, most of it complex financial details that probably only make sense to accountants. Here are some of the key figures though:

There was a decrease in revenue by 8 percent to DKK 35.0 billion compared with DKK 37.9 billion in 2016. Excluding the impact of foreign currency exchange, revenue for the full year declined 7 percent compared with 2016.

Operating profit (profit before financial items and tax) for 2017 was DKK 10.4 billion compared with DKK 12.4 billion for 2016, a decrease of 17 percent year on year. Net profit for the full year was DKK 7.8 billion compared with DKK 9.4 billion in 2016.

A profit of DKK 7.8 billion is still significant but the story is obviously just how much lower that is than 2016.

LEGO are attributing the lower profits, in part, to a “clean-up of inventories across the value chain.”  I am honestly not sure exactly what that means.

LEGO have also released a document with some interesting facts for the year.

Best selling themes (random order)

  • LEGO® City
  • LEGO® Friends
  • LEGO® Star Wars™
  • LEGO® Creator
  • LEGO® DUPLO®

Best selling sets (random order)

  • LEGO® City Police Station (60141)
  • LEGO® City High Speed Chase (60138)
  • LEGO® Star Wars™ Millennium Falcon (75105)
  • LEGO® Star Wars™ BB-8 (75187)
  • THE LEGO BATMAN MOVIE Minifigure Series (71017)

On the AFOL side of things there are 300 Recognised LEGO User Groups and an estimated 500,000 adult fans of LEGO.

You can read more about the annual results here. The PDF with interesting facts is found here.

Thanks to Trevor who sent me links to the interesting facts.

2013 Looking Good For The LEGO Group

LEGO Logo

13% revenue increase fueled by strong growth in Asia and new product innovation

The LEGO Group has just released an interim report on 2013 figures, and things are looking good for our favourite toy maker. The standout figure from the report is that revenue for the first half of 2013 was DKK 10,363m compared with DKK 9,134m for the same period last year – an increase of 13%. The LEGO Group also increased its share of the global toy market to approximately 8.8 % – up from 8.6% at the end of 2012.

The report mentions a good reception of the LEGO Chima range. This is welcome news as initial online reaction (mainly the AFOL community) to the theme was somewhat negative.

LEGO Legends of Chima has performed well in its launch phase and is already one of the largest LEGO product themes.

When it was first released LEGO Friends range caused a considerable amount of controversy, but continued growth shows that LEGO got their market research right.

LEGO Friends – a product line launched in 2012 and targeted towards girls – is also experiencing a strong second year, with growth rates significantly higher than the company average.

Another interesting fact from the report illustrates one of the reasons that LEGO is such a trusted brand

0 product recalls has been performed in the first six months of 2013 – since 2009 the LEGO Group has not recalled a product.

The full report is quite lengthy, so we haven’t included it in this article, but it can be found in full here http://aboutus.lego.com/en-us/news-room/2013/september/interim-result-2013