Lego posts record profit, CEO shrugs off US tariff threat

COPENHAGEN: Lego’s CEO told AFP that US President Donald Trump’s tariff threats do not keep him “awake at night” as the world’s largest toymaker posted on Tuesday record earnings for 2024.

Sales rose 13 per cent to 74.3 billion kroner ($10.8 billion) last year, while net profit grew 5.0 per cent to 13.8 billion kroner. “We are relevant and we have exciting passion points for many different consumer groups, and that has worked throughout the world,” the Danish company’s chief executive, Niels Christiansen, told AFP.

After this strong year, the head of the private family-owned company aims to keep a cool head in response to geopolitical uncertainties and Trump’s threat to impose tariffs on the European Union.

“At this point in time, there are no tariffs. If they would come in and we would deem that they would be more of a permanent nature, then I think we will also find ways to deal with that,” Christiansen said, adding it was “not what keeps me awake at night”.

“It’s not the first time we see those fluctuations and every time we’ve been able to not overreact,” he said. The chief executive added that for the company gaining market share was “way more important than whether we get tariffs or not,” which he stressed that the company has managed to do for the last five years.

Lego’s success stands out in an otherwise sluggish toy market, as consumer sales increased by 12 per cent, the company said, while the toy market contracted by 1.0 per cent. Franchises like Lego Star Wars and Harry Potter, along with partnerships -- notably with the video game Fortnite -- have cemented the Danish toymaker’s brand among consumers.

“It’s not one particular country, it’s not one particular product or product group. It is very broad-based,” Christiansen said. However, the group, whose name is a contraction of the Danish “play well” (leg godt), has seen stronger demand in the Americas, Europe, and the Middle East than in Asia.