Retail in Asia

In Trends

Lego revenues soar in 2022, opens new Vietnam factory

Denmark’s Lego Group on March 7 reported strong earnings for the full year of 2022, which saw the toy maker outpace the toy market during the year and gain market share. The Copenhagen-based company also bowed a new factory in Vietnam, as it ramps up production capabilities in Southeast Asia.

SEE ALSO: Lego opens its first Chongqing flagship store

For the full year, Lego clocked revenue of DKK 64.6 billion (USD 9.7 billion), up 17 percent, compared with the same period last year, including the impact of foreign currency exchange rates.

Lego said the annual double-digit uptick was driven by strong demand for the company’s portfolio, retailer partnerships both online and instore, a “robust” e-commerce platform and a “resilient” global supply chain network.

Consumer sales grew 12 percent in 2022, and net profit was DKK 13.8 billion, a 4 percent rise from DKK 13.3 billion compared to last year.

“2022 was a milestone year for the Lego Group as we celebrated our 90th anniversary. Our strong results show that the Lego System in Play is more relevant and appealing than ever.”

“I am very satisfied with our performance. We achieved double-digit top line growth and landed the year beyond expectations on the back of exceptional growth last year and despite challenging market conditions. This was due to our relevant brand, a fantastic, diverse portfolio, inspiring shopping experiences and outstanding execution from our teams.”

During the year, the Lego Group opened 155 new Lego branded stores, reaching a total number of 904 stores globally, and broke ground on a new carbon-neutral run factory in Binh Duong, Vietnam. Looking ahead, the company expects single-digit revenue growth in 2023, outpacing the global toy market and will continue to “accelerate investments in strategic initiatives.”