LEGO
Operating profit increases in 2016 / Record revenues achieved / Strong performance in mature markets / Flat US consumer sales
 The “Nexo Knights” range, combining digital and physical play, added to the revenue growth (Photo: Lego) |
Investments in capacity, digital developments and sustainability initiatives helped Danish toy manufacturer Lego (Billund; www.lego.com) report a 1.7% year-on-year increase in operating profit to DKK 12.4 bn (EUR 1.67 bn) in 2016. Revenues in the year increased by 6.0% to a record DKK 37.9 bn.
Revenue growth was driven by the company’s core themes including Lego “City”, “Ninjago”, “Friends”, “Technic” and “Creator”. During the year, over 355 products were launched, including Lego “Nexo Knights”, a platform that combines digital and physical play.
Lego CEO Bali Padda said: “Innovation is critical to our success and each year around 60% of our portfolio is new products. We are constantly challenging ourselves to engage and inspire children with the most relevant, exciting and fun play experiences. This year we have strengthened our efforts around digital engagement, and found new ways to connect with children online and through a range of digital platforms.”
Padda said the company had enjoyed a strong first half of the year, while consumer sales growth in the second half was at more sustainable levels than previous years. Most major markets experienced growth in 2016, the company said. However, the growth was very unevenly distributed. It was encouraged by its performance in mature markets in Europe and continues to see strong potential in China. In the US, however, consumer sales were flat year-on-year despite a significant increase in marketing spend in the second half of the year. Padda said that the company will continue to work closely with its retail partners to identify opportunities to drive growth in this market.
In 2017, the company will introduce further platforms that bring blended digital and physical play. Lego “Life” is a digital platform to encourage children to share their building experiences and was released in selected markets in February. Lego “Boost”, which combines coding and traditional building, will be launched in the second half of 2017.
During 2016, the company made significant investments in programmes that address climate change and improve the sustainability of its operations and made a significant step to achieve its goal of balancing 100% of its global energy consumption with energy produced by its own renewable sources by 2020. In 2016, 90% of energy was balanced, and the company is on track to achieve its goal three years ahead of schedule.
The group also continued to make progress against its ambition to use only sustainable materials in its products by 2030. It began the design of its Sustainable Materials Centre (see Plasteurope.com of 18.06.2015), dedicated to the project, and in 2016 developed prototypes of next-generation bricks made from sustainable sources. In addition, 93% of all waste and 100% of all waste from brick production was recycled.
Looking forward, the company expects continued sales growth in 2017, in line with its long-term expectations, and forecasts satisfactory results for 2017.
Revenue growth was driven by the company’s core themes including Lego “City”, “Ninjago”, “Friends”, “Technic” and “Creator”. During the year, over 355 products were launched, including Lego “Nexo Knights”, a platform that combines digital and physical play.
Lego CEO Bali Padda said: “Innovation is critical to our success and each year around 60% of our portfolio is new products. We are constantly challenging ourselves to engage and inspire children with the most relevant, exciting and fun play experiences. This year we have strengthened our efforts around digital engagement, and found new ways to connect with children online and through a range of digital platforms.”
Padda said the company had enjoyed a strong first half of the year, while consumer sales growth in the second half was at more sustainable levels than previous years. Most major markets experienced growth in 2016, the company said. However, the growth was very unevenly distributed. It was encouraged by its performance in mature markets in Europe and continues to see strong potential in China. In the US, however, consumer sales were flat year-on-year despite a significant increase in marketing spend in the second half of the year. Padda said that the company will continue to work closely with its retail partners to identify opportunities to drive growth in this market.
In 2017, the company will introduce further platforms that bring blended digital and physical play. Lego “Life” is a digital platform to encourage children to share their building experiences and was released in selected markets in February. Lego “Boost”, which combines coding and traditional building, will be launched in the second half of 2017.
During 2016, the company made significant investments in programmes that address climate change and improve the sustainability of its operations and made a significant step to achieve its goal of balancing 100% of its global energy consumption with energy produced by its own renewable sources by 2020. In 2016, 90% of energy was balanced, and the company is on track to achieve its goal three years ahead of schedule.
The group also continued to make progress against its ambition to use only sustainable materials in its products by 2030. It began the design of its Sustainable Materials Centre (see Plasteurope.com of 18.06.2015), dedicated to the project, and in 2016 developed prototypes of next-generation bricks made from sustainable sources. In addition, 93% of all waste and 100% of all waste from brick production was recycled.
Looking forward, the company expects continued sales growth in 2017, in line with its long-term expectations, and forecasts satisfactory results for 2017.
14.03.2017 Plasteurope.com [236426-0]
Published on 14.03.2017
German version of this article...