#LegoRevenue2024 #EpicGamesCollab #SustainableLego
Lego's Revenue Surges 13% in First Half of 2024
Lego, the iconic Danish toy manufacturer, has announced a remarkable 13% increase in revenue for the first half of 2024, reaching 31 billion Danish krone, or approximately $4.65 billion. This robust performance is attributed to the company's diverse product range, particularly the success of Lego Icons and Lego Creator, as well as its collaboration with Epic Games' Fortnite.
Despite a decline in consumer spending in China, particularly on high-value items, Lego remains optimistic about the long-term potential of the market. The company has successfully capitalized on the growth experienced during the pandemic by offering a wide range of products that appeal to both children and adults. This includes sets linked to popular franchises like Harry Potter and Star Wars, as well as creative building options for consumers, such as flowers, succulents, renowned artworks, and animals.
CEO Niels Christiansen noted that the volume of sales has increased, with consumers opting for less expensive sets but maintaining their purchasing volume. This trend has stabilized, and almost all of the growth is due to an increase in volume.
Lego has also made significant strides in sustainability, nearly doubling its use of renewable and recyclable materials in its bricks compared to the entirety of 2023. The company aims to source half of its raw materials from sustainable origins over the next few years.
In contrast, publicly traded competitor Mattel reported a 1% decline in net sales during the first half of 2024, while Hasbro experienced a 21% drop in net revenue from January to the end of June. Mattel is grappling with challenging comparisons to toy sales driven by the 'Barbie' phenomenon in 2023, and Hasbro continues to deal with the ramifications of its eOne divestment.
Lego's commitment to sustainability and its diverse product offerings have positioned the company for continued success in the toy market.
Original Article: https://www.cnbc.com/2024/08/28/lego-revenue-first-half-2024.html
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