Over the past year, Danish Lego Group grew again and for the first time became the world’s largest toy manufacturer, surpassing Mattel.
Lego’s revenue in 2016 grew 6% to € 5.1 billion, surpassing Mattel’s revenue, which fell to € 4.9 billion. Lego’s net profit also increased slightly, to 1.24 billion euros.
Despite the positive results, CFO John Goodwin says he’s not focusing on the numbers. “We just want to reach as many children as possible in the world,” he says.
The company has made huge strides in recent years. Its turnover in 2013 was only 3.36 billion euros, but it has now managed to add around 50% since then. The United States has been the main engine of growth for some time, but now that that growth is slowing, Europe and Asia have taken over.
“We are very happy with this, especially since we have been active in Europe for decades and have already achieved very high market penetration here,” said Goodwin. Lego is taking full advantage of its licensing agreements with Disney and DC Comics. For example, the two Disney Star Wars films helped generate increased sales of several models. Lego typically targets children, but is now also tackling another area of growth: adults returning nostalgically to the toys of their youth.