Has Lego turned the ship around?

Lego’s revenue saw a significant increase of 13% in the first half of 2024, reaching 31 billion Danish krone (approximately $4.65 billion).

The Danish company Lego is privately held.

This impressive growth was driven by several factors, including the success of its collaboration with Fortnite, which introduced new Lego sets that resonated well with both younger and older audiences. Additionally, Lego’s diverse product range, including popular themes like Lego Star Wars, continued to attract strong consumer demand globally, particularly in markets like Europe and North America.

The company also reported a 14% increase in consumer sales and a notable rise in operating profit by 26%. This strong financial performance comes after a relatively slow growth period in 2023, indicating a successful rebound and strategic investment in new product lines and sustainable practices.

Lego’s financial performance in the first half of 2024 marks a significant turnaround for the company, which had experienced slower growth in 2023. The 13% increase in revenue, which amounted to 31 billion Danish krone (about $4.65 billion), was largely fueled by the introduction of new and diverse product lines that have resonated strongly with consumers. One of the standout successes was the collaboration with Fortnite, a highly popular video game. This collaboration brought new Lego sets to the market that appealed to a broad audience, including both younger gamers and adult collectors, contributing significantly to the sales boost.

Moreover, Lego’s ability to cater to a wide range of interests and age groups has continued to drive demand across various markets. Their product portfolio includes everything from classic building sets to more specialized themes like Lego Star Wars, which remains a perennial favorite. This diversity ensures that Lego remains relevant and appealing to a broad consumer base, helping the company maintain strong sales momentum.

In addition to strong consumer sales, Lego’s strategic investments have also played a crucial role in this growth. The company increased its investments in new factories, offices, and other long-term initiatives, which have begun to pay off. Operating profit for the first half of 2024 rose by 26%, reflecting the positive impact of these investments. Lego’s focus on sustainability has also been a key factor, as the company continues to make progress in increasing the amount of sustainable materials used in its products, which has resonated well with environmentally-conscious consumers.

This financial success comes after a slower 2023, where the company saw only modest growth due to significant investments that initially impacted profits. However, these investments have now set the stage for the robust performance seen in 2024. Lego’s strong cash flow and increased profitability indicate that the company is on a solid footing to continue its growth trajectory, further supported by its ongoing efforts to innovate and expand its product offerings​.