"Lego Sales Rise as Bricks Click with More Shoppers"

The LEGO Group has been on a remarkable growth trajectory, with its sales surging in the first half of 2024. The company's revenue increased by 13 percent to 31.0 billion Danish krone ($4.62 billion), outpacing the broader toy industry, which saw a 1 percent decline. This impressive performance is a testament to LEGO's strategic investments in sustainability, retail, and digitization, which have not only enhanced its market position but also driven its financial performance.

LEGO's commitment to sustainability is evident in its efforts to increase the amount of resin purchased from sustainable sources certified under the mass balance principle. During the first half of 2024, almost a third (30%) of all resin purchased by LEGO was certified mass balance, which translates to an estimated 22% material from renewable and recycled sources. This represents a significant improvement from 2023, when 18% was certified mass balance, equating to 12% sustainable sources. LEGO aims to purchase more than half of its raw materials from sustainable sources via the mass balance principle in the coming years, reducing its use of virgin fossil materials in the process.



In terms of digitalization, LEGO has been investing in upgrading its technology, including improving demand forecasting models using machine learning and upgrading internet connectivity in stores to improve guests’ retail experience. The company also relaunched its LEGO Play app, an evolution of the groundbreaking LEGO Life app, which was the first social network designed for children. These digital initiatives have helped LEGO maintain a strong brand position and market share, even in the face of macroeconomic challenges.

LEGO's expansion into new markets, particularly in China, has significantly contributed to its overall revenue growth and market share. The company has been rapidly growing in China over the past four to five years, with CEO Niels B Christiansen highlighting that "our brand position and market share are much stronger today than they were a few years ago." This growth is evident in the company's financial results for the first half of 2024, where LEGO Group's revenue surged by 13 percent to 31.0 billion Danish krone ($4.62 billion), compared to 27.4 billion Danish krone in the same period last year. Consumer sales also surged by 14 percent, outpacing the broader toy industry, which saw a 1 percent decline. This indicates that LEGO's investments in the Chinese market are paying off, as the company continues to build its brand and optimize stores in the region.

LEGO's partnerships with major brands like nike and Formula 1 play a significant role in driving consumer demand and market expansion. These partnerships help LEGO tap into the passion and enthusiasm of fans of these brands, thereby expanding its customer base and increasing consumer engagement. For instance, the company announced new multi-year partnerships with NIKE, Inc. and Formula 1®, with the first sets launching in 2025. These partnerships not only bring in new fans but also create a buzz around LEGO products, making them more appealing to a broader audience. By leveraging the popularity and recognition of these brands, LEGO can attract new builders and maintain the interest of existing fans, ultimately driving consumer demand and market expansion.

In conclusion, LEGO's strategic investments in sustainability, digitalization, and market expansion have not only enhanced its market position but also driven its financial performance. The company's commitment to sustainability and digitalization, along with its expansion into new markets and partnerships with major brands, has helped LEGO outpace the overall toy industry and achieve double-digit revenue growth. As LEGO continues to invest in its brand and optimize its operations, it is well-positioned to maintain its strong market position and financial performance in the years to come.