Hey guys! The results are in! The LEGO Group has posted the 2020 year earnings in comparison to 2019. You can read the full article HERE. And boy! I’m sure they are happy with these results!
Annual sales increased by 13 percent to DKK 43.7 billion (8.84 billion CAD / 7.01 billion USD) compared to 2019, while sales grew by 21 percent in the same period. Operating profit was DKK 12.9 billion (2.61 billion CAD / 2.07 billion USD), up 19 percent from 2019. The brand’s global market share grew worldwide and in the 12 largest countries.
Niels B. Christiansen, CEO, said: “We are very pleased with these results. They show the timeless relevance of the LEGO brick and learning through play. This achievement is also proof of the passion, creativity and resilience of our employees. Despite the challenges posed by the pandemic, they worked tirelessly to keep the world playing. Over the past two years we have invested heavily in initiatives designed to support long-term growth. In 2020 we started to see the benefits of these moves, especially in the e-commerce and product innovation space. We will continue to increase investments in the coming year, while continuing to focus on the “Innovation of Play” campaign, our brand, digitization and the development of an omnichannel retail network. “
China, North and South America, Western Europe and Asia-Pacific were the strongest growth in all market groups. The top themes (not in this order) were LEGO City, LEGO Technic, LEGO Star Wars, LEGO Friends and LEGO Classic.
In August 2020, LEGO Super Mario was released and quickly became one of LEGO’s most successful theme launches. This theme combines both digital and physical play, which clearly was a great idea that will continue into 2021, with LEGO VIDIYO where kids can merge music and play.
Niels B. Christiansen said, “We know children and adults love the LEGO brick, and it will always be at the heart of our business. But today’s kids are growing up in a digital world and they effortlessly mix online and physical play. We look forward to providing them with safe, exciting gaming experiences that are fun and offer new opportunities to learn and be creative. “
The global brand campaign “Rebuild the World”, has inspired LEGO to invest in the brand and therefore as a result was named the world’s most popular brand. Now that’s something to brag about!
Temporarily shutting down physical stores, due to the pandemic, the company’s investments in its omnichannel retail ecosystem supported growth in its partners’ and own company’s channels. LEGO.com doubled in the number of user visits as the company continued its global store expansion program. Last year, 134 new retail stores opened – 91 in China. The total number of LEGO branded stores worldwide now currently sits at 678. And it doesn’t end there! Another 120 stores plan to open in 2021 – 80 in China.
Niels B. Christiansen said “People are looking for unique and memorable physical brand experiences, so we will continue to invest to expand our global retail presence and enhance our in-store shopping experiences. This approach strengthens our brand and creates a positive impact across all channels. We will also continue to expand our e-commerce capabilities to support online shopping on our own platforms and those of our partners.”
As the pandemic pushed a lot of businesses to change their ways, The LEGO Group will be ensuring to ride that train to accelerate its investments in digitization in 2021. This means creating world-class digital experiences for everyone who interacts with the company. Including consumers, retail partners, suppliers and employees.
Niels B. Christiansen said: “We have a solid digital foundation, but we have to get faster. The past year has shown the importance of having an agile, responsive company that has a strong digital foundation. We will continue to build our capabilities in this area so that we are well positioned to meet the evolving needs of our trading partners and consumers now and in the long term.”
Last year The LEGO Group announced investing up to 400 million USD dollars (504.73 million CAD) over the course of 3 years in sustainability initiatives. This focus to enable children to learn through play, reduce environmental impact, and create inclusive workplaces for all people involved in creating the company’s play experiences.
Through play-based learning initiatives, 3.2 million children (many in need) were reached, switching to paper bags (opposed to single-use plastic bags) started being tested, and announced reducing its absolute carbon dioxide emissions by 37 percent by 2032. GO LEGO!
“The challenges this generation of children are facing are urgent and complex and must be addressed through a combined effort of business, governments and experts. We look forward to working with children, parents, colleagues and partners to create a bright future for generations to come. ” Niels B. Christiansen said.
Promobricks.de posted the LEGO 2020 Annual Results Sizzle Reel:
LEGO is making an effort for some big changes that our future generations will inherit. Now what do you think of all that? Comment below!
Happy LEGO Building!
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