This morning in Billund, The LEGO Group has presented its full year financial results for 2017. Unfortunately, not everything is awesome for the Danish toymaker: the company has reported a decline in revenue and operating profit. Revenues declined 7 percent; global consumer sales remain flat.
Here are the highlights of the presentation:
- Revenue for the full year decreased by 8 percent to DKK 35.0 billion compared with DKK 37.9 billion in 2016. Excluding the impact of foreign currency exchange, revenue for the full year declined 7 percent compared with 2016.
- Operating profit (profit before financial items and tax) for 2017 was DKK 10.4 billion compared with DKK 12.4 billion for 2016, a decrease of 17 percent year on year.
- Net profit for the full year was DKK 7.8 billion compared with DKK 9.4 billion in 2016.
- Cash flow from operating activities for the year was DKK 10.7 billion compared with DKK 9.1 billion in 2016.
- Decline in revenue was driven in part by clean-up of inventories across the value chain. Global consumer sales were flat and trended upwards in the final months of 2017.