How much money does TLG make?

[1974]

Quite a lot I'd say ..

(Article in danish, sorry) :

http://www.business.dk/detailhandel/saa-meget-er-lego-vaerd

Everytime TLG sells a set (*) worth 100DKR they make 71DKR. And that is after production costs have been deducted

(*) I guess that means "100DKR" to the resellers, not "100DKR" shopprice .. but still ..

The company is estimated to have a worth of 100 billion DKR, about 20.000.000.000USD

Revenue in 2007 was 8 billion DKR, today about 24 billion DKR

They will never go on the open stockmarket (and thank you for that!)

It's a biz. They want to make money, I understand. But I do think they're pushing it a bit too far

We can aford it in Denmark, But I have family in Portugal. LEGO does NOT sell down there, simply too expensive compared to other brands not worthy to mention

I'm a LEGO loyalist. 100%. But I do think it's getting out of hand

Discuss?

[1974]

Also noted in the article - No other toy manufacturer earns as much as TLG. Their biggest competitor, Mattel earns 51/100, compared to TLG's 71/100

(The article comes from a quite reputable source, so I do believe the numbers)

I do not want to piss on TLG's succes and their importance to Denmark. Billund was a just a tiny city before they started and they build the airport as well. They have created many thousands of jobs and returned billions in revenue (and many more in personal income tax). TLG LOOOOVE Denmark and they'll never move the (core) production outside Denmark, I know

But they are pushing the price of sets a wee bit too far, imho

(Edit, spelling mistakes)

Edited February 22, 2013 by 1974

[Luke_likes_Lego]

In a broad sense, the market sets the price.

Lego would be likely to set their prices to maximise profit.

Unlike other segments of the toy market, it would seem fair to say that consumers are less prepared to buy construction bricks from anyone but LEGO.

As a result when the "max profit retail price" is set - it is a high one.

If this means their toys won't sell in some markets, this is unfortunate - but I'm not really sure what the alternative could be. If the prices were cheaper in those markets, consumers worldwide would quickly soak them up anyway and that market would still largely still miss out

LLL

[Hey Joe]

It's a curious situation, isn't it? Ten years ago they were hurt, losing money but now they're riding high. Surely it's something that's being studied in business schools around the world. I've read a few articles about the steps taken to turn themselves around. The company was pretty inefficent and had some other problems which apparently have been solved. My question is; why does Lego release this finacial information? It's a privately-held company, right? They don't have to release it.

I haven't read anything recently (if ever) on their pricing strategy and they probably keep those cards pretty close to their chest in any event. Guessing I'd have to say that they're probably just trying to charge what the market will bear and build their coffers back up to protect themselves against future downturns? The toy business is amazingly fickle I think. Let's not forget that they lost a big chunk of money on that Lego Universe game and that was just a few years back.

I wish the prices were lower, it would spur me to buy more. As it is I just get the must-have sets and rue the day my son starts to ask for certain items specifically. What can you do? Budgeting one's self is the only option, All of the toys in the stores seem expensive to me. It's fun to play around with Lego and I'm hoping that my son will enjoy playing with the sets when he gets older (he likes his Duplo so; so far so good on that account) but toys are VERY much a non-necessary item.

Perhaps the key is get away from any collector's mentality about Lego (I GOTTA HAVE ALL THOSE SETS!!!) and just get what we need?

Anyway, it's interesting. Have fun, Joe

[Bricknblue]

LEGO releases it every year... And they just happen to released it 20 hours ago...

In 2012 the LEGO Group increased its revenue by 25% to GBP 2,549 million – nearly triple the sales of 2007. This represents the fifth consecutive year in which the LEGO Group delivered year over year revenue growth in excess of 15%.

Key facts from the LEGO Group’s annual report for 2012, which was published today:

• The year's operating profit increased to GBP 866 million against GBP 660 million in 2011, an increase of 40%.

• The operating margin increased to 34% from 30% in 2011.

• The year's net profit increased to GBP 611 million against GBP 484 million in 2011.

• The revenue increased by 25% to GBP 2,549 million against GBP 2,181 million in 2011. In local currency (i.e. excluding the impact of foreign exchange changes) revenue increased 20% year over year.

• The net cash generated from operating activities was GBP 680 million against GBP 430 million in 2011.

• In 2012 the Group paid GBP 208 million in corporate income taxes.

The LEGO Group reporting currency is DKK. Conversion from DKK to GBP is based on an annual average currency rate (however conversion of net cash generated from operating activities is based on year-end currency rate) in 2012 and 2011 respectively.

A half a billion pounds by the looks of it.

http://aboutus.lego.com/en-gb/news-room/2013/february/annual-result-2012?CMP=TWC-CO2012Annualresult2012

That also has a link to the full article / book report to download.