Partially driven by strong growth in Europe and Asia and its new physical/digital play product Nexo Knights, Denmark-based The Lego Group reported its highest-ever yearly revenue in its 85-year history.
Revenue for 2016 rose by 6% to US$5.4 billion (DKK 37.9 billion) versus US$5.1 billion (DKK 35.8 billion) in 2015. Excluding foreign exchange impacts, year over year revenue growth increased by 5.5%.
The majority of Lego’s major markets saw growth in 2016, led by high single- or double-digit increases in all European markets and double-digit growth in the Chinese market.
Its sales in the US, however, were flat year-on-year, despite a significant marketing spend in the second half of the year. Japan also saw a small decline in sales.
Lego’s operating profit, meanwhile, increased by 1.7% from US$1.7 billion (DKK 12.2 billion) in 2015 to US$ 1.8 billion (DKK 12.4 billion) in 2016. Net profit for the full year came in at US$1.33 billion (DKK 9.4 billion) versus US$1.31 (DKK 9.2 billion) the previous year.
Continuing its run of making 60% of its launches new products every year, the company introduced more than 335 new items in 2016 with core brands Lego City, Lego Ninjago, Lego Friends, Lego Technic, Lego Creator and Lego Nexo Knights leading the growth.
As for The Lego Group’s investment in sustainable global growth and talent, US$0.4 billion (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 company.
Lego also balanced 90% of its energy in 2016 putting it on track to reach its 2020 goal of balancing 100% of its global energy consumption with energy produced by its own renewable sources three years ahead of schedule.