Yesterday, the LEGO Group announced its earnings for the first half of 2025, reporting continued strong growth on both the top- and bottom-line. The company outpaced the toy industry as demand for the LEGO product portfolio remained strong across all market groups, especially in Western Europe and CEEMEA. The LEGO Group also continued to increase spending on strategic initiatives aimed at driving both short- and long-term growth.
Niels B Christiansen, CEO, said: “We are very pleased to have maintained our strong performance in the first half of 2025, winning share in the global toy market. This growth is driven by our large and innovative range of products that continues to be relevant across ages and interests. With the solid financial foundation we have built over several years, we continue to invest in capacity expansions and strategic initiatives that fuel our growth. Above all, the results reflect the enduring dedication and passion of our more than 31,000 colleagues around the world who have stayed focused on reaching more children with inspiring LEGO play experiences.”
In the first six months, the LEGO Group’s revenue increased by 12% to a record DKK 34.6 billion, up from DKK 31.0 billion in H1 2024. Consumer sales grew by 13%.
Operating profit increased 10% to DKK 9.0 billion compared to the first half of 2024, supported by a strong top-line and continued focus on improving productivity, while the company increased its spending in areas such as sustainability, retail, and digitalisation. Net profit grew 10% to DKK 6.5 billion, against DKK 6.0 billion in the same period of 2024.
Cash flow from operating activities was DKK 5.9 billion against DKK 7.5 billion in H1 2024, which was mainly due to the timing of cash outflow and increased tax payments. At the same time, the company maintained significant investments in building new factories and upgrading existing facilities, which totalled DKK 4.2 billion against DKK 4.5 billion in H1 2024. This resulted in free cash flow of DKK 1.7 billion compared to DKK 3.0 billion in the previous year.
INNOVATIVE PORTFOLIO DRIVES STRONG DEMAND
With 314 new sets launched in the first half of 2025 – a record for the company – the broad and innovative portfolio resonated with builders of all ages and interests. Bestsellers included a mix of homegrown and licensed themes such as LEGO City, LEGO Technic, LEGO Botanicals, LEGO Icons, and LEGO Star Wars.
The LEGO Botanicals theme was popular around shopping occasions such as Valentine’s Day and Mother’s Day, and the company saw very successful product launches and brand activations at Grand Prix races as part of its new partnership with Formula 1.
New partnerships with BLUEY and ONE PIECE expanded the LEGO portfolio, and the company announced a multi-year collaboration with The Pokémon Company International, set to bring LEGO Pokémon to fans in 2026. The LEGO Group also launched a campaign titled “She Built That” to encourage girls to use their creativity as builders.
On June 11th, the company marked the United Nations International Day of Play with playful activities in cities around the world to raise awareness about the benefits of the power of play.
EXPANDED GLOBAL FOOTPRINT
In April, the LEGO Group opened its new state-of-the-art factory in Vietnam, which will support long-term growth in the Asia-Pacific region. The 150,000 m2 factory is the company’s sixth worldwide and most environmentally sustainable facility to date.
The company is currently investing more than US$1.5 billion in building a factory and a 185,000 m2 regional distribution centre in Virginia, U.S. Both are set to open in 2027. It also continued expanding factories in Mexico and Hungary.
In addition, it opened a new Americas head office in Boston. which will be home to 800 employees who support its business in the U.S. and across the Americas region.
BUILDING MEMORABLE BRAND EXPERIENCES
As the LEGO Group continued to invest in its online and in-store retail experiences, the company opened 24 stores in the first half of the year, taking its global total to 1,079 branded stores in 54 markets. This included the first store in New Delhi to strengthen the brand’s presence in India.
As part of its ongoing digitalisation, the company also invested in adopting new technologies and platforms that help create great brand experiences for kids, shoppers, and retail partners, as well as support improved efficiency and ways of working for colleagues.
REDUCING ENVIRONMENTAL IMPACT
The LEGO Group continued spending on initiatives to reduce its environmental impact, including introducing more sustainable materials to make its products. The company again significantly increased purchases of materials produced with sustainable sources, doubling the share of renewable content from H1 2024 and further reducing the reliance on virgin fossil-based materials. It is on track to reach its full-year target. which is 60% of purchased materials to be produced with sustainable sources, including mass balance (53%) and segregated materials (7%).
As part of this effort, the LEGO Group introduced rSEBS, a new, more sustainable material for selected LEGO tires made from recycled fishing nets, ropes, and engine oil. Additionally, the company will introduce e-methanol, a material made from mixing renewable energy and CO2 from bio-waste to create hard, rigid LEGO elements like wheel axels, connectors, and minifigure hands.
Niels B Christiansen said: “Children and their parents rightly expect us to play our part in shaping a more sustainable future. We remain fully focused on our mission to inspire and develop children everywhere – which includes ensuring that future generations inherit a healthy planet. We are privileged to be in a strong position to deliver on this mission – investing significantly in sustainable growth now and for the future.”
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