Lego profits, sales up despite raised prices

COPENHAGEN: Lego on Tuesday said profits increased by 5% in 2022 from a year earlier and sales rose even as it raised prices on higher-ticket toys.

The Danish toy company said net profit rose to 13.8 billion kroner ($2 billion) from 13.3 billion kroner. Sales were up 12%, while revenue grew 17% to 64 billion kroner ($9.2 billion).

CEO Niels B Christiansen called 2022 “a milestone year” as the privately held company celebrated its 90th anniversary. We “landed the year beyond expectations on the back of exceptional growth last year and despite challenging market conditions,” he said.

With inflation growing, Lego increased prices on about a quarter of its products, Christiansen said. “The low-cost products were not affected. The increase was chiefly on our expensive products,” he said.

“Despite that, we saw our sales increase.” Lego said there was growth in all markets, particularly in the Americas and Western Europe. The company opened 155 stores worldwide last year to reach 904 locations.

The colourful building bricks are sold in more than 130 countries. Christiansen said 48% of the company’s products were new and that some top themes included Lego City, ‘Stars Wars’ and Harry Potter.