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/
Those profits are phenomenal! Wow, great news. Well done to Lego!! I’m sure all of the readers here contributed to their success. They certainly are addictive. How are people feeling about the new factory (& the potential for any changes or the effects on quality control)?
I’m starting to feel like the quality of this blog has gone down recently, articles seem to be almost cut and pasted on the same day from another commonly visited global lego blog….
or is it just me….
oh, but that is just in regards to news articles, and new releases, etc.
…Please keep up the great work notifying us of Australian based SALES!!
Sorry to hear you feel that way. I never copy and paste articles from other sites. Some content is going to be the same because it comes from the same source such as press releases or information communicated directly from LEGO.
There are only so many ways to present the figures from a financial statement or description of a new set. I always try and include an opinion, fact or figure relevant to Australia if it is possible. For example in this article I provided an $AU equivalent of the profit to give a better sense of what they actually made. I know for me that figures in DKK can be a bit confusing.
I want this site to be the best it can be so I appreciate your feedback.
Hopefully the sales will pick up more as we get closer to Easter.
I use this site for all my Lego information so I am happy that you include Lego press releases etc. This is the only place that I get them from. The addition of AU specifc sales and items is what makes this the site that I come to.
While others who look at multiple sites may get the information multiple times myself (and I’m sure others who rely solely on you) are grateful for the information provided.
The fact that you provide orginal links for the press releases etc. is also useful for the occasional extra information.
Thanks for your efforts in keeping this up.