Lego CEO: Rising oil prices may lead to higher toy production costs

Lego Faces Rising Oil Costs Amid Global Tensions

Despite another impressive year of growth, Lego is beginning to feel the impact of the United States' conflict with Iran, particularly as it relates to surging oil prices. Since oil is a crucial material in the production of Lego bricks, these fluctuations are starting to affect the company.

During a recent interview, Niels B. Christiansen, CEO of the Lego Group, explained, "Raw material costs are a significant factor for us. When oil prices climb, our expenses inevitably follow. The extent of the impact depends on whether these increases are temporary or persist over time. In the short term, our contracts offer some protection, but if high prices continue, we will feel the effects."

Christiansen also noted, "This kind of volatility is something we've managed over the past several years. It's not unprecedented, but the duration and severity will determine how much it influences our costs."

Since the launch of Operation Epic Fury just over a week ago, crude oil prices have soared by more than 60%.

Lego Achieves Record Sales and Expands Product Line

Lego announced today that its annual sales climbed 12% to 83.5 billion Danish kroner, with every division contributing to the growth. The company now boasts its largest-ever range of products, thanks to creative releases like Formula One and floral-themed sets.

“Our brand remains exceptionally resilient,” Christiansen remarked.

Profits outpaced sales growth, with operating income rising 22% and net profit up 21%. These gains came as Lego invested in expanding its retail presence and manufacturing capabilities.

The company has not issued financial projections for 2026.

Innovation Drives Future Growth

Lego’s outlook remains positive, fueled by a wave of new launches, including the introduction of Lego Smart Play, which brings sound features to the classic bricks for the first time.