LEGO SYSTEM A/S — Financial report

CVR 47458714

Latest financial period

2025 • 2025-01-01 • 2025-12-31 • entity • DKK • 61963000000 • 32026000000 • 18325000000 • 13258000000 • 51237000000 • 24875000000 • 6257

Financial history

2024 • 2024-01-01 • 2024-12-31 • entity • DKK • 55590000000 • 29515000000 • 16747000000 • 11405000000 • 47012000000 • 22254000000 • 5950
2023 • 2023-01-01 • 2023-12-31 • entity • DKK • 47957000000 • 25129000000 • 14326000000 • 10912000000 • 42194000000 • 20119000000 • 5587
2022 • 2022-01-01 • 2022-12-31 • entity • DKK • 48295000000 • 26654000000 • 16316000000 • 11370000000 • 41336000000 • 18310000000 • 4958
2021 • 2021-01-01 • 2021-12-31 • entity • DKK • 40925000000 • 23380000000 • 14457000000 • 10673000000 • 37005000000 • 16622000000 • 4409
2020 • 2020-01-01 • 2020-12-31 • entity • DKK • 31499000000 • 17363000000 • 10499000000 • 7286000000 • 32607000000 • 14201000000 • 4018
2019 • 2019-01-01 • 2019-12-31 • entity • DKK • 28112000000 • 16503000000 • 10785000000 • 6570000000 • 28466000000 • 14296000000 • 3808
2018 • 2018-01-01 • 2018-12-31 • entity • DKK • 27354841000 • 15987031000 • 11330970000 • 7199105000 • 28406272000 • 14720840000 • 3593
2017 • 2017-01-01 • 2017-12-31 • entity • DKK • 25883415000 • 15095338000 • 10574531000 • 6856428000 • 26833847000 • 14086293000

Annual report highlights

primary activities • Business activities The Company’s main activity is the development, production, marketing, and sale of play materials. • entity
expected development • In 2026, the Company expects to achieve single-digit revenue growth driven by an innovative portfolio, strong retail execution and resilient supply chain. The Company expects profit before financial items to be in line with 2025 levels, due to continued significant spend on strategic initiatives such as sustainability and digital technology. Special risks - operational and financial risks Group management is responsible for the ongoing risk management, including mapping and assessment of risks as well as risk-minimising measures. Risk management operates in four areas: strategic, financial, operational and disaster risks. The work with risks continues to follow the policies and strategies adopted by the board for the areas. For these areas, systematic identification, assessment and coverage/handling are carried out in accordance with the strategies. A comprehensive overview of all the Company's significant risks has been established in a consolidated risk matrix, where the effect and probability of an episode are mapped and prioritised, just as the consolidated risk exposure is measured and reported. LEGO System A/S's most significant risks relate to the significant uncertainties in the toy market with significant volatility around the launch of new product concepts. The overall risk exposure is still assessed as moderate in relation to the adopted risk appetite. Currency risks Currency risks are managed centrally on the basis of the LEGO Group’s board approved currency policy. Future contracts and options are used to hedge purchases and sales in foreign currencies. As a general rule, these are classified as hedges and meet the accounting requirements for securing future cash flows. As a result, the total currency risk is assessed to be low. Interest rate risks The interest rate risk relates to interest-bearing liabilities and receivables. The interest rate risk is considered to be insignificant and is not expected to affect the result significantly. Credit risks Credit risks relate to receivables from sales and services. The LEGO Group has fixed credit granting procedures. The Company has no significant receivables from sales and services concentrated in specific countries. As a result, the total credit risk is assessed to be low. Disaster risks Disaster risks cover situations that can paralyse the Company's operations. The LEGO Group has continuity plans that ensure production; there is also an extensive insurance program that supports in the event of disasters. The Group has a crisis management group that can come together so that a possible disaster can be handled in the best possible way. Research and development (R&D) Continuous innovation and development are key to the LEGO Group’s mission to inspire and develop the builders of tomorrow. In 2025, new products accounted for approximately half of the portfolio which is similar to 2024. The Company invested in innovating core play themes, exploring new play forms as well as bridging digital and physical play. R&D activities also included exploring new sustainable technologies, trend spotting, anthropological studies and collaborating with educational institutions. Branches The Company has a smaller branch abroad, LEGO System A/S Latvijas filiāle “Baltic”, domiciled in Riga, Latvia. • entity
management review • Financial review Revenue increased 11 percent to DKK 62.0 billion compared to DKK 55.6 billion in 2024, which exceeded projected single-digit growth. This achievement builds on the strong results in 2024. Primary drivers included a strong product portfolio, excellent retail execution across owned and partner channels, resulting in growth in all market groups with notable performance in the European market. This was further supported by a flexible and resilient global supply chain. Profit before financial items increased by ten percent to DKK 15.8 billion compared to DKK 14.3 billion in 2024, which was above expectations and was driven by record topline supported by production scale efficiencies, and successful productivity initiatives. Net profit increased 16 percent to DKK 13.3 billion compared to DKK 11.4 billion in 2024 with help from financial items. Management considers the Company's financial performance in the year satisfactory. • entity
management review • Intellectual capital resources The average number of employees in 2025 was 6,257 compared to 5,950 in 2024. Employees participate in the LEGO Group’s Performance Management Programme. The programme is designed to ensure all colleagues work towards achieving the LEGO Group’s short and long-term ambitions. Employees have targets that are aligned to the Group’s overall targets and are awarded a bonus based on performance versus target. • entity
subsequent events • 18. Events occurring after the reporting periodNo events of importance have occurred after the reporting date • entity
contingent liabilities • 14. Contingent liabilities and other obligations Contractual obligations Bank guarantees 112 112 Purchase contract commitments of property, plant and equipment 117 1,090 Other obligations 2,465 2,053 Lease commitments 0 657 2,694 3,912 Other obligations consist of licence and service agreements. The entity has entered various contracts with vendors on usual terms and conditions of sales. The entity takes part in some legal cases. The management believe the outcomes has no influence on the Financial Statements. The Danish companies in the LEGO Group are jointly and severally liable for corporate income tax according to the joint taxation in the LEGO Group, KIRKBI A/S and in the companies controlled by KIRKBI A/S. The total amount of income tax liabilities, as well as related income tax credit counterparts are shown in the Annual Report of KIRKBI A/S, which is the administration company of the joint taxation. The Danish companies in the LEGO Group are furthermore jointly and severally liable for Danish Taxes at source withheld on behalf of non-resident companies for dividend, royalty and interest. • entity