Financial Results
In 2003, The Lego Group faced a budget deficit of 1.4 billion DKK (220 million USD at then current exchange rates; equal to EUR 175 million), causing Poul Plougmann to be replaced by Kjeld Kirk Kristiansen as president. In the following year, almost one thousand employees were laid off, due to budget cuts. However, in October, 2004, on reporting an even larger deficit, Kristiansen also stepped down as president, while placing 800 million DKK of his private funds into the company.
In 2005, The Lego Group reported a 2004 net loss of DKK 1,931 million on a total turnover, including Legoland amusement parks, of DKK 7,934 million.
For 2005, the company returned a profit of DKK 702 million, having increased its revenue by 12% to DKK 7,050 million in 2005 against DKK 6,315 million in 2004. It also cut expenditures and disposed of amusement parks and a factory in Switzerland. Because the company expects further difficulties in the coming years, it plans to concentrate on profit growth instead of expansion of sales.
In 2011, sales for the company grew 11%, rising from $2.847 billion in 2010 to $3.495 billion in 2011. Profit for 2011 fiscal year increased from $661 million to $776 million. The increased profit was due to the enormous popularity of the new brand Ninjago, which became the company's biggest product introduction ever.
2012 saw a 25% rise in revenue over the previous year. More than 60% of its profit was helped by new product launches such as Friends and Chima. It was also reported that The LEGO Group had become the world's most valuable toy company ahead of Mattel with a value at over $14.6 billion.
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