Update : LEGO replaces Padda as CEO with Niels B. Christiansen

[Ed Mack]

36 minutes ago, Alpinemaps said:

 

And not just that. Mixels tapped into the creativity, buildablility, and playability experience that's at LEGO's core.

You could mix and match tribes. You could build huge mechs from multiple sets. It really was unlimited what you could do.

 

Yep...One of the best themes in my opinion.  Sad to see it go.

[Shewie]

The Annual report is up (uploaded as usual by 1st of March) but it's not available for public view yet.
https://www.lego.com/en-us/aboutus/lego-group/annual-report

[Val-E]

19 minutes ago, Shewie said:

The Annual report is up (uploaded as usual by 1st of March) but it's not available for public view yet.
https://www.lego.com/en-us/aboutus/lego-group/annual-report

Thursday.

https://www.lego.com/en-us/aboutus/news-room/2017/february/annual-result-2016-live-stream/

 

[Shewie]

Here it is. Quick summary of 2016 Lego Annual Report Press Conference Live from Billund!

[Val-E]

Looks like Jorgen left at exactly the right time and the COO will also move on with record figures in his last report.

BTW 6% annual growth was thanks to a poorer second half of the year, growth was 10%  during 1H.

In 2015 it was 18% for 1H an 25% at end of year. That would tend to suggest the major growth ended in the first half of 2015 and that TFA maybe wasn´t such a big player after all. I guess you can interpret the stats in many ways, though.

 

Edited March 9, 2017 by Val-E

[Shewie]

2 minutes ago, Val-E said:

Looks like Jorgen left at exactly the right time and the COO will also move on with record figures in his last report.

 

through the entire presentation they didn't even mention his name. shame. we all know his influence in putting this company back together.

[Val-E]

Full report is up.

https://wwwsecure.lego.com/en-gb/aboutus/medialibrarydetails/the-lego-group-annual-report-2016-62490f6af4ec421e9b58fa2228a044b7

2016 was another year of record sales for the LEGO Group, but with slower growth
than the extraordinary high levels seen in the past. Revenues increased by 6.0% in
2016 to DKK 37.9 billion against DKK 35.8 billion the year before.
Revenue growth excluding foreign exchange impacts was 5.5% year over year (on a
local currency basis).
Sales were driven by strong growth in Europe and Asia, while Americas markets experienced
mixed performance.
The LEGO Group’s profit before tax amounted to DKK 12.4 billion in 2016 against DKK
12.1 billion the year before, an increase of 2.0%. The lower profit growth than in recent
years is a result of a planned high level of investments in physical capacity and organisational
capability building to equip the company for future growth.
The result is considered satisfactory, in line with the Group’s long-term expectations.
Operating profit
The LEGO Group’s operating profit amounted to DKK 12.4 billion in 2016 against DKK
12.2 billion in 2015.
The operating margin was 32.8% in 2016 against 34.2% in 2015.

[Val-E]

Distribution of sales:

Most major LEGO markets experienced growth in 2016. However, the growth was very
unevenly distributed. The Group’s sales in North America were slightly down in 2016
as were sales in Japan. All European markets saw healthy high single or double digit
growth rates, and the Chinese market continued its strong double digit growth.
Among the top selling lines in 2016 were core themes like LEGO® City, LEGO® Star
Wars™, LEGO® NINJAGO®, LEGO Friends, LEGO Creator and LEGO® DUPLO®. The new
theme LEGO® NEXO KNIGHTS™, that combines physical and digital play through building
sets, digital gaming and inspirational storytelling, was also a contributor to growth.
During the coming years, the LEGO Group expects to grow moderately ahead of the
global toy market that is expected to grow low to mid-single digit. This is expected to
be achievable due to the Group’s continued focus on innovation and its commitment
to global expansion, such as deepening its presence in China.
As a consequence of the LEGO Group’s global growth, the company experiences an
increase in the risk related to trade receivables. This is reflected in an increase in provisions
for bad debts, ref. note 16.

 

Expectations for 2017

The LEGO Group expects continued sales growth in 2017, in line with the long-term
expectations mentioned above. The LEGO Group expects satisfactory results for 2017.

Edited March 9, 2017 by Val-E

[Val-E]

Other interesting data.

Employees have risen by 3000  (20%) compared with 1000 or so in previous years.

Equities are up and liabilities are down.

Returon in Equity and Invested capital are the lowest in 5 years displayed.

[Val-E]

So, the top selling sets were:

Millennium Falcon

Friends Amusement Park

Porsche 911 GT3 - wow, didn´t see that coming.

[feed]

25 minutes ago, Val-E said:

Porsche 911 GT3 - wow, didn´t see that coming.

I know a couple of people, for whom this is first set in 30 years and they paid RRP at release.  

[Phil B]

27 minutes ago, Val-E said:

So, the top selling sets were:

Millennium Falcon

Friends Amusement Park

Porsche 911 GT3 - wow, didn´t see that coming.

Is top selling defined # * $ ? or just # ? That would explain 911.

[Val-E]

Just now, Phil B said:

Is top selling defined # * $ ? or just # ? That would explain 911.

Yeah, I think it will be on USD not units, as discussed previous years. Still a remarkable performance for a supposedly niche product.

[inversion]

32 minutes ago, Val-E said:

Yeah, I think it will be on USD not units, as discussed previous years. Still a remarkable performance for a supposedly niche product.

Then I am happy, because it means we will get similar sets in the future.

[Val-E]

Totally and 3 of the top 10 sets in Germany were big Technic ones.

2016 may not have been a stellar year for many themes, but for Technic it was one of the best ever.

I guess it also proves that Lego can charge a premium for quality packaged sets targeted at adults.

[thedingman5]

Not sure if this is the right home, but LEGO released their 2016 financials:

https://www.lego.com/en-gb/aboutus/news-room/2017/march/annual-results-2016/

Key takeaway - they juiced US discounts in the 2nd half and sales were still flat...

Quote:  In the US, consumer sales were flat year-on-year despite a significant increase in marketing spend in the second half of the year. 

Edited March 9, 2017 by thedingman5
Added quote...

[SLL]

2 minutes ago, thedingman5 said:

Not sure if this is the right home, but LEGO released their 2016 financials:

https://www.lego.com/en-gb/aboutus/news-room/2017/march/annual-results-2016/

Key takeaway - they juiced US discounts in the 2nd half and sales were still flat!

It tells me they need to try harder ?

[newbie77]

KEY TAKEAWAY IN RED. [ In SHORT,

a. LEGO growth is less than TOY MARKET

b. LOSING STEAM IN NORTH AMERICA but CHINA COVERED FOR IT ]

 

Market development

The LEGO Group’s main activity is the development, production, marketing and sale of

play materials.

The market for traditional toys, in which the Group operates, saw healthy growth during

2016.

North American and most European toy markets experienced mid-single digit growth

during the year. Most of the Asian and Pacific toy markets also posted solid growth

except for South Korea and Australia that saw a declining toy market in 2016.

LEGO® sales

Most major LEGO markets experienced growth in 2016. However, the growth was very

unevenly distributed. The Group’s sales in North America were slightly down in 2016

as were sales in Japan. All European markets saw healthy high single or double digit

growth rates, and the Chinese market continued its strong double digit growth.

 

 

Edited March 9, 2017 by newbie77

[jaisonline]

Padda's reign at Lego didn't last too long.

https://brickset.com/article/29843

The LEGO Group today announced that its Board of Directors has appointed Niels B. Christiansen, 51, as CEO of the LEGO Group effective October 1, 2017.

Christiansen was most recently CEO of global industrial technology company, Danfoss, a position he held for nine years until end of June 2017. Christiansen replaces Bali Padda, 61, a long-standing LEGO Group executive, who will assume a special advisory role with LEGO Brand Group.

Jørgen Vig Knudstorp, Executive Chairman of LEGO Brand Group said, ‘Niels is a great leader who delivered outstanding results while CEO of Danfoss. There, he transformed a traditional industrial company into a technology leader. His experience in digitalisation and globalisation, implementing a transformative strategy, and creating an agile, high performing, international team will benefit the LEGO Group. The Board is confident that under Niels, the LEGO Group will continue to flourish and bring play experiences to more children around the world.’ Knudstorp said the transition to a new CEO occurred more rapidly than the Board had anticipated.

"Bali has been part of the LEGO Group family for the past 15 years. He played an integral role in the turnaround of the LEGO Group and during his time as CEO created a solid foundation from which to continue to transform the company. He is a great friend and a wonderful ambassador for the LEGO brand," said Knudstorp.

Niels B. Christiansen has spent more than 25 years in business leadership. He began his career at management consultancy, McKinsey and power tools manufacturer, Hilti, and became CEO of GN Netcom aged 33. He joined Danfoss in 2004 and became CEO in 2008. During his tenure, the company doubled in size to 39 billion DKK, increased its global footprint and transformed its portfolio in response to changing customer demands. Danfoss is a family-owned, Danish-based global technology company which specializes in infrastructure, food supply, energy efficiency and climate-friendly technology solutions.

Christiansen said: "I am honoured to have the opportunity to join an organisation as iconic and purpose-driven as the LEGO Group. I have loved building with LEGO bricks since I was a child. As I look at the challenges facing this generation of children, the Group’s mission, to inspire and develop the builders of tomorrow, is more important and urgent than ever. I am looking forward to working with the Board, the family and the LEGO Group team as we embark on the next phase of global growth." 

About Niels B. Christiansen
Niels has broad experience leading large, global high-tech companies. He was most recently President & CEO of Danfoss A/S, a position he left in June 2017. Niels joined Danfoss in 2004 as Executive Vice President and a member of the Executive Committee for Danfoss A/S. He became Chief Operating Officer in 2005, Vice-CEO in 2006 and President & CEO in 2008.

Niels began his career as a management consultant at McKinsey & Co. Following this he joined Hilti Corp as Vice President Corporate Development. In 1997, he joined GN Netcom, moving to the role of President & CEO in 2000. In 2003, he was appointed Group Executive Vice President at GN Store Nord.

He is Chairman of the Board of William Demant Holding A/S and Axcel and a Member of the Board of AP Møller-Maersk A/S and Technical University of Denmark (DTU). 

 

[Cheese]

Jobs for the boys. Mckinsey alumni. Previous CEO responsible for the turnaround also Mckinsey.

[jaisonline]

58 minutes ago, Cheese said:

Jobs for the boys. Mckinsey alumni. Previous CEO responsible for the turnaround also Mckinsey.

aka "the family plan"

[minicoopers11]

Huh. Wonder what drove that.

[exciter1]

10 minutes ago, minicoopers11 said:

Huh. Wonder what drove that.

I hope it's the crappy decisions and brand deterioration.

10179 remake put them over the edge.

[BricksBrotha]

http://www.bbc.com/news/business-40884749

 

When Mr Padda took over last December Lego said the search would begin immediately for a successor.

The search "went faster than expected", it said.

[jaisonline]

9 minutes ago, BricksBrotha said:

http://www.bbc.com/news/business-40884749

When Mr Padda took over last December Lego said the search would begin immediately for a successor.

The search "went faster than expected", it said.

lego is clearly lying.   something happened with padda. 

in dec. 2016 , nothing publicly mentioned about padda included he was a "temp".

http://www.thehindu.com/business/Industry/India-born-Bali-Padda-is-new-CEO-of-Lego/article16772412.ece

"“Bali is good at setting a direction,” Mr. Knudstorp told Reuters on Tuesday, predicting that Mr. Padda will do a better job executing ideas than he has done. "

https://www.lego.com/en-us/aboutus/news-room/2016/december/bali-padda-new-ceo

"“Bali possesses the right LEGO mindset. He has a deep knowledge of our entire company, a very clear sense of what we need to do to take the company to the next level, and he is a true ambassador for the LEGO® Idea and the LEGO brand.”

https://www.cnbc.com/2016/12/07/not-being-danish-is-not-an-issue-for-me-says-legos-incoming-ceo-bali-padda.html

 "So my focus would be to continue to build the brick business, and (look at) how we can take it as a business further and further as we go along, and at the same time look at the movie business, look at the games business and see what can be done to help augment the brand and continue to leverage it."