LEGO Group saw profits slip and warned of weaker growth as it navigates what it says is the toughest toy market in 15 years.
Full-year operating profits at the Danish toymaker slipped 5% to 17.1 Dkr (£1.9 billion), while net profits also dropped 5% to £1.5 billion.
In the last six months growth returned, boosted by the festive period, with operating profits jumping by 7% year-on-year.
Despite the industry slowdown, sales during the full year lifted 2% higher to £7.6 billion.
Looking forward, the group expects single-digit revenue growth in 2024, beating industry growth averages.
However, net profits are predicted to fall “slightly” because of an increase in spending on “strategic initiatives”.
Niels Christiansen, Lego’s chief executive, said: “We are pleased with our performance given that 2023 was the most negative toy market in more than 15 years.
“Despite the external market conditions, we continued to invest for the future and made good progress on digital, sustainability and retail initiatives that will support long-term growth. We are grateful for our dedicated colleagues who remain committed to our mission to inspire and develop the builders of tomorrow.”