Toy maker Lego observed a 17% growth in sales in 2022, with strong demand in Western Europe and the Americas and the company’s store expansion in China fueling growth.
The company’s sales rose to $9.25 billion last year as it opened a total of 155 new locations, increasing its total store count to more than 900.
“We have really good momentum, and I think it will continue in 2023,” Lego Chief Executive Niels Christiansen said.
Building on its 2022 momentum, the company plans to open another 145 stores this year, mainly in China, which Christiansen sees as a crucial market that will help it achieve a high single-digit increase in sales this year, according to Reuters.
The company has continued to enjoy growth in sales even after pandemic-related lockdowns were lifted, which has positioned it for a steady increase in sales in the coming quarters.
“After a few extraordinary years, we may see a return to more normal growth,” Christiansen said. “But we believe we can continue to outpace the market.”
Lego reported an operating profit of $2.5 billion, up 5% since 2022. The growth in profit margins came despite the company reportedly raising the prices of some of its products in September lower than its input costs.
“High growth in sales has helped us compensate for those extra costs on freight, energy and raw materials,” he said.
Looking ahead, the company plans to keep its price points the same as the cost of raw materials was starting to come down, Christiansen added.
In January 2023, the company revealed that it was moving its headquarters to Boston.