Lego just posted a blockbuster H1
...especially compared to the rest of the toy industry
Big brick energy
Lego just keeps building on its position as the world’s biggest toymaker, after posting record first half sales of 31 billion Danish kroner (or $4.65 billion) as well as H1 operating profit which was up 26% compared to the same period in 2023.
That sort of growth on its own would be reason enough for Lego execs and investors to celebrate, but it’s even more impressive when you take the wider toy market into consideration. According to Circana research, toy sales were up from the pre-pandemic era in 2023, but had shrunk 7% compared to 2022, and the biggest names in the toy game are showing signs of the slowdown. Indeed, Mattel, the company behind Barbie and Hot Wheels, saw sales drop 1% in the first half, while My Little Pony and Monopoly makers Hasbro saw revenue dip 21%.
Well played
More than 90 years on from when the company was founded, people are still in love with Lego, a portmanteau of the Danish words for “play well”, as the company adds to the classic sets that have cemented its success through the decades. Lego Star Wars, for instance, remains one of the brand’s top performing themes, 25 years into its existence.
The company keeps diversifying too, adding ~300 new sets in the first half of 2024, as the ability to appeal to older demographics with offerings like the Botanical Collection — which has blossomed since launching in 2021 when many had a little more time to get creative — continues to set the Danish brand apart.
The company’s doubling down on its partnerships in the digital world on the back of its lucrative Fortnite collaboration, and it’s also making a lot of noise about its eco credentials, with Lego reporting that 30% of the resin it used in 1H 2024 came from a blend of fossil-fuel material and recycled or renewable sources, per the Financial Times.
