Lego said that store openings in China, as well as strong demand in Western Europe and the Americas, resulted in 17% sales growth in 2022, and that it expects to outperform the market this year.

Last year, the family-owned company known for its colorful plastic bricks reported sales of 64.6 billion Danish crowns ($9.25 billion), when it opened 155 new stores, bringing the total number of Lego stores worldwide to more than 900.

“We have really good momentum, and I think it will continue in 2023,” Lego Chief Executive Niels Christiansen told Reuters.

Lego plans to open 145 new stores this year, mostly in China, which Christiansen said in an interview will help the company increase sales by a high single-digit percentage.

Lego’s Star Wars and Harry Potter building sets, as well as its City and Technic lines, were among the best-selling items in 2022.

The Danish company, which employs over 27,000 people worldwide, saw sales increase both during the pandemic and after lockdowns were lifted.

“After a few extraordinary years we may see a return to more normal growth,” Christiansen said. “But we believe we can continue to outpace the market.”

Lego’s operating profit of 17.9 billion crowns increased by 5% year on year, following 32% growth the previous year.

Christiansen stated that it raised prices on some products in September, but only to cover increases in input costs.

“High growth in sales has helped us compensate for those extra costs on freight, energy and raw materials,” he said.

Lego’s CEO stated that the company has no immediate plans to increase prices and expressed optimism about falling freight and raw material costs.

Lego intends to open new factories in Virginia and Vietnam in 2024 and 2025, respectively, as part of its strategy to locate production close to its key markets.

(Adapted from BusinessTime.com.sg)

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