Lego leader states Trump's tariffs aren't his primary concern or nighttime worry.
Lego's CEO, Niels Christiansen, Stands Firm Amid Trade Tensions
Let's chat, mate!
In an interview with AFP, Lego's CEO, Niels Christiansen, sounded unfazed by US President Donald Trump's tariff threats, reporting record earnings for 2024 for the world's largest toymaker.
Bottom line up front
A 13% surge in sales took Lego's earnings to a whopping 74.3 billion kroner ($10.8 billion) last year, and a 5% leap in net profit to 13.8 billion kroner.
Not losing sleep
With the company's factory in Mexico supplying the US market and a new factory under construction in the States (to be operational in 2027), Trump's tariff threats don't seem to be bothering the LEGO bigwig too much.
"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 find ways to deal with that," Christiansen told AFP, adding it's "not what keeps me awake at night."
Winning the market share game
When asked about the company's priorities, Christiansen stressed gaining market share as being "way more important" than dealing with tariffs. Over the past five years, Lego has managed to increase sales by 12, 13, or 14 percent yearly, even in a competitive market where total sales grew only by a couple of percent.
Staying relevant
Lego boasted 840 products in 2024, with 46% consisting of new releases. Successful franchises like Lego Star Wars, Harry Potter, and partnerships with video games like Fortnite have helped cement Lego among consumers. Christiansen noted the importance of staying relevant—not just with kids but also with adults—to continue attracting consumers worldwide.
Region-wise demand
The Danish toymaker has seen stronger demand in the Americas, Europe, and the Middle East than in Asia, where it has invested heavily in recent years. Despite this, Christiansen remains optimistic about China, expressing a willingness to take a few years to get demand back on track if needed.
Going green
For several years, Lego has been striving to make its plastic bricks more eco-friendly. Half of the materials used are now sustainably sourced, with Lego investing heavily in various sustainability projects—increasing its investment by 68% from the previous year.
[1] - LEGO Group Invests in New Infrastructure in the United States[2] - Lego's Journey to a Sustainable Future[3] - LEGO Group Reveals Strategic Expansion Plans[4] - Lego's Sustainability Efforts More Than Doubled Last Year
- Amid rising tensions in trade, the CEO of Lego, Niels Christiansen, discussed the company's investments in the United States, mentioning the importance of staying relevant in both the arts industry, with the launch of new Lego Star Wars, Harry Potter, and Fortnite products, and the business sector, with sustainable initiatives.
- In a news report, Christiansen stated his optimism for China's market, despite slower growth rates in Asia, assuring efforts to revive demand over the next few years if necessary. Meanwhile, Lego boosted its finance by expanding in the Americas and Europe, also diversifying its products, with 46% of them being new releases.
- As the space for competition in the toy industry continues to grow, Lego has maintained a firm position, showcasing significant success in capturing market share, as demonstrated by the 13% surge in sales and a 5% leap in net profit last year, totaling 74.3 billion kroner. Additionally, the company's focus on sustainability and eco-friendly initiatives has gained attention in the news and finance sectors, with an increase in investment by 68% from the previous year.
