Lego bricks are selling like hot cakes, which is reflected on the one hand in the brilliant 2002 results from Danish toy manufacturer Lego (Billund; www.lego.com), and on the other in quantity processed: last year, over 165,000 t of plastics were injection-moulded into colourful cuboids, figures, and the like, almost 20% more than in the previous year.

The company, which is owned by the Kristiansen family through its investment company Kirkbi and by foundations, primarily uses ABS for its products, but alternative, non-fossil raw materials are also increasing in popularity.

A team of 150 experts is constantly developing and testing new materials, and Lego also works with universities and start-ups. In 2021, the company presented prototype bricks made of rPET for the first time, a topic that will be pursued further, the company said, without giving further details. In addition, the material share of bio-based raw materials is to be expanded. In the meantime, about 200 different elements made of bio-polyethylene – based on Brazilian sugar cane – have been included in the product range.

About half of turnover – which grew 17% to DKK 64.6 bn (EUR 8.7 bn) last year – was generated by new products. The group is now focusing more on licensing for franchises such as Star Wars, Lord of the Rings, and Harry Potter, and thus increasingly targeting an over-18 clientele.

Market share has grown worldwide, especially in the Americas and Western Europe, CEO Niels Christiansen said during the presentation of company results. Despite inflationary pressures on material, freight, and energy costs, operating profit rose 5% to DKK 17.9 bn, with net profit of DKK 13.8 bn up 4% compared to the previous year. During the past year, Lego opened 155 new shops to push the worldwide total past 900.

In 2022, the group also bolstered its investments in property, plant, and equipment to DKK 5.9 bn versus DKK 3.1 bn in the previous year. This included increasing capacity at production facilities in Hungary, Mexico, and China. In addition, the foundation stone was laid for a new, carbon-neutral factory in Binh Duong, Vietnam, and plans were announced to build another CO₂-neutral production facility in the US in Richmond, Virginia.

Unlike most of its competitors, Lego benefits from using in-house production at its five factories instead of contract manufacturers. “In the next three years, we will continue to expand this network,” the company said. A new campus is currently being built at the company’s headquarters, which, in addition to offices, laboratories and test facilities, will also include areas for toolmaking and injection moulding.