The LEGO Group posts stellar 2024 financial results with record revenue and profits
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The LEGO Group has announced the full year financial results for 2024, with record revenue and operating profits! The LEGO Group’s revenue grew by 13% to DKK 74.3bn (US$10.85 bn), while operating profit grew 10% to DKK 18.7bn DKK (US$2.73 bn) and net profit increasing by 5% to DKK 13.8bn (US$2.01bn).
It seems like we’re buying more LEGO than ever before, with consumer sales growing by 12% driven by strong demand for its large and diverse portfolio, excellent execution in markets and a resilient supply chain.
2024 also made records for LEGO’s biggest ever product portfolio, with In 2024, we launched the largest portfolio yet with 840 products offering exciting build experiences for all ages and interests.
The best-selling themes were a combination of homegrown and entertainment IPs such as LEGO® Technic™, LEGO® Icons, LEGO® City, LEGO® Star Wars™ and LEGO® Harry Potter™.
In the 2024 LEGO annual report, The LEGO Group specifically calls out The Botanical Collection performing well and drove growth among consumers who are new to LEGO play.
Here are the top level highlights from 2023.
- Revenue grew 13 percent to DKK 74.3 billion, driven by strong demand for its large, diverse portfolio that caters to builders of all ages and interests.
- Consumer sales* increased by 12 percent.
- Market share grew significantly with the LEGO Group consistently outpacing a slightly declining toy market.
- Operating profit increased 10 percent to DKK 18.7 billion, while increasing strategic spending on sustainability and digital technology. Net profit grew 5 percent to DKK 13.8 billion.
- Free cash flow was DKK 10.2 billion. Cash flow from operating activities increased by 24 percent, supporting substantial investments in new factories and facilities, including in Vietnam and the U.S.
- Certified mass balance purchases** more than doubled from 18 percent in 2023 to 47 percent in 2024.
That said, looking at the financials, especially margins, LEGO’s operating and net profit margins are the lowest we’ve ever seen, demonstrating that LEGO has not been immune to rising costs due to inflation. Another takeaway from margin erosion is that LEGO have ate some of the rising costs, and have not fully passed them on to consumers, which is always a good thing.
That said, growing your revenue by a whopping 13% will afford you plenty of options here, and LEGO will gladly take lower margins for revenue growth.
Another interesting tidbit I found is in the deferred income section, where there is currently DKK 880m in expected revenue from LEGO Insider Points sitting in members’ wallets!
Just to illustrate how massive this result is, I’ve been tracking LEGO’s revenue and net profit for over a decade, and here’s where LEGO stands in 2024 with its record breaking results.
Where did this growth come from? A massive second half for 2024!
Check out LEGO’s 2024 Annual Report and full press release below of its 2024 earnings.
The LEGO Group delivers record top- and bottom-line results in 2024
BILLUND, DENMARK, March 11, 2025: The LEGO Group today issued its annual results for 2024. The company achieved record revenue and operating profit, outpacing the toy market with significant market share gains. The double-digit revenue growth was driven by strong demand for its large and diverse portfolio, excellent execution in markets and a resilient supply chain. To support growth now and in the future, the company accelerated spending on strategic initiatives.
CEO Niels B Christiansen said: “2024 was an exceptional year for the LEGO Group and we are very pleased with our strong performance. We achieved record top- and bottom-line results even as we accelerated spending on strategic priorities, including a significant increase in the purchases of sustainable raw materials. We are encouraged by these strong results as they will allow us to continue to reach more children with LEGO play experiences now and in the future.”
Revenue grew 13 percent to DKK 74.3 billion driven by strong demand in the Americas, Europe, and Middle Eastern markets. Consumer sales increased by 12 percent, growing significantly ahead of the toy market which declined one percent.
Operating profit increased by 10 percent to DKK 18.7 billion supported by revenue growth, scale efficiencies, increased asset utilisation and productivity. This was achieved as spending on long-term strategic activities increased significantly. Net profit grew by 5 percent to DKK 13.8 billion, surpassing expectations.
Cash flow from operating activities grew by 24 percent to DKK 19.2 billion from DKK 15.4 billion in 2023. The company invested DKK 9.0 billion mainly in building new factories and expansion of facilities and offices, an increase on DKK 8.5 billion in 2023. This resulted in free cash flow of DKK 10.2 billion compared to DKK 6.9 billion in 2023.
Large and diverse portfolio
The 2024 portfolio was the LEGO Group’s largest ever, with 840 products designed for builders of all ages and interests. Bestselling themes combined homegrown and entertainment IP themes, including LEGO® City, LEGO® Star Wars™, LEGO® Technic™, LEGO® Icons and LEGO® Harry Potter™.
The company expanded its LEGO Botanical Collection which attracted new builders and proved especially popular around gifting occasions.
The LEGO® Fortnite® play experience also expanded with the launch of the first physical sets inspired by the game and the introduction of new in-game experiences such as LEGO Islands and Brick Life. Since its launch in late 2023, LEGO Fortnite has engaged over 87 million players.
To tap into the passion of sport, the company announced new multi-year partnerships with NIKE, Inc. and Formula 1® with the first sets launching in 2025.
Investing for the long term
- Invested in building more memorable brand experiences in retail: The LEGO Group continued to invest in creating great experiences in its own and partner channels. It opened new retail stores and hosted in-store activities to mark special occasions such as Valentine’s Day and Lunar New Year.
- Expanded global supply chain: The LEGO Group expanded its manufacturing capacity at existing factories in Mexico, Hungary and China and made progress building new factories in Vietnam and the United States. Systems and equipment testing in Vietnam were successfully carried out in Q4 and the factory will be operational in early 2025. The factory in Virginia, U.S. is on track to open in 2027. Two new Regional Distribution Centres were completed. One in Belgium, which opened in June, and a second in Vietnam which will open in early 2025.
- Strengthened digital foundations: The LEGO Group continued to invest in upgrading its technology. This included improving demand forecasting models using machine learning and upgrading internet connectivity in stores to improve guests’ retail experience. The company embarked on a number of multi-year transformational projects to modernise its foundational technology systems across the business.
Building a sustainable future
The LEGO Group made substantial investments to reduce its environmental footprint and positively impact future generations. In 2024, half of the materials purchased to make LEGO bricks were produced with sustainable sources. This included 47 percent certified mass balance, translating to an estimated average of 33 percent material from renewable sources. An additional three percent of the material the company uses to make its products came from segregated sustainable sources***. In 2023, 18 percent of purchases was certified mass balance, translating to an estimated average of 12 percent sustainable materials.
In an effort to decrease carbon emissions at its factories, the LEGO Group continued phasing out natural gas heating in Denmark, installing geothermal energy in Hungary and increased solar energy capacity in China, Czech Republic and Denmark by 43 percent. The company expects to see the positive impact of these investments on emissions in the next few years which will help achieve its science-based target.
To bring the benefits of play to children in need, in 2024 the LEGO Group positively impacted over 12 million children through product donations and learning through play initiatives.
Niels B Christiansen said: “Play is more important than ever, and we were happy to see the UN General Assembly adopt an International Day of Play to champion children’s right to play. Our outstanding performance in 2024 helped reach millions of children around the world with joyful learning-through-play experiences that help them develop the skills they will need to thrive.”
