LEGO (LEGO) H2 2023 earnings summary

Executive summary

• Revenue rose 2% to DKK 65.9bn in 2023, while consumer sales grew 4% despite a 7% decline in the global toy market; market share increased.

• Operating profit was DKK 17.1bn and net profit DKK 13.1bn as spending accelerated on strategic initiatives supporting long-term growth.

Financial highlights

• Revenue was DKK 65.914bn vs. DKK 64.647bn in 2022; growth was 3% excluding currency translation.

• Operating profit was DKK 17.108bn vs. DKK 17.921bn; decline was 2% excluding FX, and H2 operating profit increased 7% YoY.

• Net profit was DKK 13.109bn vs. DKK 13.782bn; income tax expense was DKK 3.950bn and the effective tax rate was 23.2% vs. 22.0%.

• Operating cash flow was DKK 15.397bn vs. DKK 15.304bn; free cash flow was DKK 6.934bn vs. DKK 9.332bn.

Outlook and guidance

• For 2024, single-digit revenue growth is expected, ahead of the global toy market, supported by an appealing portfolio and improved brand and shopping experiences.

• Net profit is expected to decline slightly as spending rises on sustainability, retail platforms and digitalisation.

• The toy market is expected to stabilise in 2024, with growth normalising and shopper behaviour returning toward pre-COVID patterns, including more in-season and in-store sales.