2011 Lego Annual Report

[Tomatoe]

Lego is doing good. With the demand, that could explain why they can still make sets smaller with fewer pieces and increasing prices every wave. http://aboutus.lego.com/en-US/default.aspx" onclick="window.open(this.href);return false;

2010 was another good year for the LEGO Group. In a global toy market making a slow recovery the company succeeded once again in capturing market shares and is now the world’s fourth largest toy manufacturer. Its global market share rose from 4.8% at the close of 2009 to approx. 5.9% at end 2010.

This is revealed in the Group’s annual accounts published today. Key figures from the accounts highlight the fact that the high rate of growth in 2009 was maintained undiminished in 2010.

• Profit for the year before tax increased to DKK 4,889 million compared with DKK 2,887 million in 2009.
• Net profit for the year increased to DKK 3,718 million compared with DKK 2,204 million in 2009.
• Group equity rose to DKK 5,473 million at end 2010 compared with DKK 3,291 million at end 2009.
• Revenue increased by 37.3% to DKK 16,014 million from DKK 11,661 million in 2009.

“The result is extremely satisfactory and is due in part to vigorous growth in markets such as the USA, UK, Russia and Eastern Europe – all identified as growth markets for the company,” says CEO Jørgen Vig Knudstorp.

Global growth
The Group has been capturing market shares in all its markets, and although Europe is the part of the world in which consumers already own most LEGO® bricks, growth has been double digit in most European countries, too.

Classic ranges such as LEGO City, LEGO DUPLO® and LEGO Star Wars™ were especially popular with consumers in 2010 but virtually all product lines sold more than expected.

The new online game LEGO Universe, which reached the market towards the end of 2010, did not live up to its initial sales expectations and had only a limited effect on revenue.

The new board game series based on LEGO bricks, LEGO Games, introduced in selected markets in 2009, launched globally in 2010 and achieved significant sales growth.

Higher stock levels supported Christmas sales
During 2010 the LEGO Group continued the process of recent years of expanding its production and warehousing capacity. A new warehouse was built at the factory in Kladno, Czech Republic, and a new moulding shop is under construction at the factory in Monterrey, Mexico. The first LEGO bricks from this new facility will be moulded later this year. In addition, design work is in progress for a new administrative building in Billund, Denmark.

These expansions have been driven by recent years’ high growth in sales, and in 2010 the Group’s improved in-stock situation meant that it was able to keep retailers’ shelves stocked with LEGO products throughout the busy pre Christmas period. That helped towards extremely fine Christmas sales.

Backed by the present level of investment, the LEGO Group expects to be able to maintain and improve upon the high level of supply reliability for its customers.

To meet the needs of increased production and rising sales, the LEGO Group has increased its workforce to an average of 8,365 full time employees. This is a sharp increase of 1,079 full time employees compared with 2009.

Focus on the environment
The LEGO Group is taking active steps to reduce its impact on the environment – for example, by making more efficient use of energy. In 2010 the Group significantly exceeded the targeted 10% improvement in energy efficiency compared to 2007. In addition, its target for 2015 is to supply half of its energy consumption from renewable sources – rising to 100% by 2020.

The LEGO Group has also become a safer workplace. In 2010 workplace accident rates fell by 38% compared with 2009. The company’s aim is to reduce the frequency of workplace accidents by a further 80% by 2015 to become one of the safest workplaces in the world.

Growth expectations in 2011
In 2011 a modest growth is expected in the global market for traditional toys, and the LEGO Group also expects sales to increase during the year – although not at the rate enjoyed in 2010.

Jørgen Vig Knudstorp says:
“We expect growth both in our primary markets in North America and Europe and in emerging, rapidly growing markets, including China. Our classic product lines as well as new themes such as LEGO Ninjago have got off to a good start in the new year.”

[Brick & Blue]

Star Wars = Not a classic.

[legitimatealex]

Star Wars = Not a classic.

Well what makes it a classic? People say Pirates is a classic but it doesn't even have a line every year. Star Wars has had its own line every consecutive year since it launched.