[Fox Business] Lego’s billion-dollar building business expands

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Lego expanded its lineup of building sets at the beginning of the month.

The toy company, based in Denmark, already brings in billions of dollars each year. Its recent move to add the new sets, which reportedly spanned various Lego categories including art, Batman, Marvel, Star Wars and Technic, could likely help the company see further growth in its bottom line.

For 2022, Lego generated a total of $9.48 billion (64.68 billion Danish krone) in revenue, according to the annual report it released in March. Meanwhile, it said it saw annual net profits of $2.01 billion (13.78 billion Danish krone).

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Those results marked nearly 17% and 4% increases year over year, respectively.

Lego attributed it to “strong demand for the company’s portfolio, retailer partnerships both online and instore (sic), a robust e-commerce platform and a resilient global supply chain network,” according to a press release.

The company reported positive growth in its top and bottom line in years prior to 2022 as well.

Its revenue came in at $8.1 billion for 2021, a figure that was more than 26% higher than the $6.4 billion it posted in 2020 and 43% higher than the $5.65 billion for 2019, according to Lego annual reports. In 2018, it was $5.34 billion.

Lego experienced net profits of approximately $1.95 billion in 2021. That had been preceded by $1.45 billion in net profits in 2020, $1.22 billion in 2019 and $1.18 billion in 2018, the annual reports showed.

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As of the end of 2022, the company had a global retail footprint with 904 branded stores, up from 832 the prior year. Sales of its Lego products occurred in over 130 countries around the world.

For its toy sets, Lego currently operates five factories with two more on the way.

One of the planned new facilities, near Richmond, Virginia, has its opening targeted for 2025, with the ground-breaking on its construction having occurred in April. It involved a $1 billion investment from the Danish toy company, FOX Business previously reported.

Lego, which dates back to the 1930s, is privately owned, with Kirkbi A/S having a 75% stake. Kirkbi A/S is the holding company for the family of the Lego founder, the late Ole Kirk Kristiansen.

Thomas Kirk Kristiansen, his great-grandson, serves as chairman of the board for Lego A/S and Kirkbi. His father, Kjeld Kirk Kristiansen, held leadership positions at both in the past.

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The other 25% of Lego belongs to the Lego Foundation, whose board Thomas Kirk Kristiansen chairs.

The Kristiansen family have a multibillion-dollar fortune largely thanks to Lego, according to Forbes. The outlet pegged the net worth of Thomas Kirk Kristiansen at $6.8 billion along with his father and sisters, Sofie Kirk Kristiansen and Agnete Kirk Thinggard.

In August of last year, Lego hit 90 years since it started.

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