Lego profits were hit by the most difficult toy market in over 15 years, as it warned its business would remain under pressure in 2024.
The Danish toy retailer saw net profit drop 5% to £1.50bn in 2023, while it pulled in annual sales of £7.55bn, a 2% rise from 2022.
The toys giant outperformed rivals as the global toy market declined 7% last year.
The sales rise was supported by strong growth in the US and central and eastern Europe, poor performance in China, where sales dropped due to “challenging economic conditions”, held the retailer back.
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Lego CEO Niels Christiansen said: “We are pleased with our performance given that 2023 was the most negative toy market in more than 15 years.”
The business said it saw “strong momentum in the final quarter of 2023,” aided by spend during the lead up to Christmas.
The results come after Lego opened 147 stores last year, more than half of them based in China, and invested in offices and new and existing factories.
In November, Lego opened its flagship store in Manchester’s Trafford Centre as it continued to build its UK retail empire.
The 267 sq m space, which is its second in Manchester, houses the toy retailer’s extensive product range, alongside a range of experiences including its Pick-a-Brick wall and Build-a-Minifigure station.
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