LEGO Group announced and published its 2016 Annual Report this morning and it makes for very interesting reading. While growth has slowed LEGO Group continues to break records with the revenue being the highest in its 86 year history. Financial highlights below compliments of LEGO Group Annual Report and announcement.
- Revenue for the full year increased by 6.0 percent in DKK to DKK 37.9 billion compared with DKK 35.8 billion for 2015.
- Revenue for the full year increased 5.5 percent compared with 2015, excluding the impact of foreign currency exchange.
- Operating profit (profit before financial items and tax) for 2016 was DKK 12.4 billion compared with DKK 12.2 billion for 2015, an increase of 1.7 percent year on year.
- Net profit for the full year was DKK 9.4 billion compared with DKK 9.2 billion in 2015.
- Cash flow from operating activities for the year was DKK 9.1 billion compared with DKK 10.6 billion in 2015.
- Tax on profit for the year amounts to DKK 3.0 billion, unchanged from 2015.
- Significant investments were made in building capacity and capability to deliver the group’s long-term growth ambition.
- 335 new products in 2016
Worth noting that the star performers in 2016 were LEGO City, LEGO NINJAGO, LEGO Friends, LEGO Technic, and LEGO Creator. So next time we moan about another LEGO City Police Station just remember it’s these core themes that continue to help drive LEGO’s growth and profit, so us AFOL’s can continue to enjoy our beloved brick!
While growth has slowed it is worth noting the LEGO Group has made large investments in 2016 to expand capacity and capability to support its global growth ambitions. DKK 2.9 billion was invested in property and building production capacity, including a new factory in China, and a net additional 1,760 people joined the organisation.
Padda said, “Our long-term ambition is to provide the opportunity for millions more children around the world to benefit from LEGO® play experiences, especially in emerging markets. In 2016, we invested significantly in the talent and infrastructure to enable this sustainable, long-term growth.”
The above is really only a small snapshot and heavily lifted from LEGO Groups 2016 Annual Report. For more in depth review head over to LEGO Group’s website and download the report (2016 Annual Report). Being a Commercial Manager in my real life the report actually made for an interesting read.