LEGO (LEGO) H2 2024 earnings summary

Executive summary

• Achieved record revenue and net profit in 2024, outpacing a declining global toy industry and gaining market share, with strong demand across all age groups and regions.

• Accelerated investments in sustainability, digital technology, and global supply chain expansion, including new factories in Vietnam and the U.S.

• Over 46% of the 840-product portfolio was new, with notable growth in the LEGO Botanical Collection and successful launches in gaming collaborations.

• Impacted over 12 million children through donations and play initiatives, and celebrated the UN's adoption of the International Day of Play.

Financial highlights

• Revenue rose 13% year-over-year to DKK 74.3 billion, exceeding expectations despite a 1% decline in the global toy market.

• Operating profit increased 10% to DKK 18.7 billion; net profit grew 5% to DKK 13.8 billion, despite foreign currency losses.

• Free cash flow surged 47% to DKK 10.2 billion; cash flow from operating activities up 24%.

• Gross margin was 68.3% (up from 68.1%); operating margin declined to 25.2% due to higher strategic spending.

• Return on invested capital (ROIC) was 52.0%; return on equity (ROE) 34.7%.

Outlook and guidance

• Expects single-digit revenue growth in 2025, ahead of the global toy industry, with net profit projected to remain at 2024 levels due to continued high investment in strategic initiatives.