The billionaire owners of the renowned Lego empire, Kirkbi, have witnessed a significant upturn in their wealth. This surge is attributed to a profitable turnaround in their investment portfolio.
What Happened: Kirkbi’s net income rose to 11.3 billion kroner ($1.62 billion) in 2023. This marks a 5.9% increase in profits, largely due to the turnaround in its investment portfolio, reported Bloomberg.
The group’s total assets, however, saw a 1.4% decrease to approximately $23.5 billion, following a withdrawal of funds by one of the family owners for private investments.
Despite this, the investment activities of Kirkbi turned profitable in 2023, generating 3.66 billion kroner in contrast to a 4.08 billion-krone loss the previous year. The portfolio encompasses stocks, bonds, and real estate.
The fund’s primary asset, a 75% stake in Lego, contributed less profit in 2023 than in the previous year. However, the overall return was deemed “satisfactory” by Kirkbi, with the fixed income, quoted equity, and real estate portfolios showing strong returns.
Why It Matters: The Kirkbi group’s success is noteworthy, especially in light of its recent activities. In 2023, the U.S. Department of Defense awarded Lego a $2 million contract for its robotics education program. This initiative aimed to integrate robotics into Lego’s products and toys, a move that has evidently paid off.
Moreover, Lego’s collaborations with other industry giants, such as Nintendo for an Animal Crossing-themed set and its potential partnership with Tesla for a Lego Tesla Supercharger set, have likely contributed to the company’s overall growth and the subsequent increase in the Kirkbi group’s wealth.
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
