The LEGO Group's CEO Niels Christiansen has voiced concerns to the media that conflict in the Middle East could increase company costs.
Christiansen spoke to Reuters in the wake of the ongoing conflict in the Middle East, noting that rising oil prices could increase the cost of raw materials essential to LEGO bricks like plastics and other production costs, like energy. Since the conflict intensified on February 28 when the United States and Israel bombed Iran, the price of Brent crude oil has increased by 65%, for example.
"If oil prices are going up, that could potentially also impact our raw material prices over time – maybe not in the short term because we have contracts," Christiansen told Reuters. "The real impact is if it stays for a long time."
The LEGO Group, along with other companies, has weathered similar storms over the last few years, such as the COVID-19 pandemic and the conflict with Russia over the last few years.
"It's not very different from what we've dealt with over the last five years in that sense," Christiansen confirmed. "So we're comfortable that we can manage, but it is just volatility again."
Judging from Christiansen's comments, this won't necessarily result in higher costs being passed on to customers – so don't panic about rising LEGO prices just yet. The LEGO Group seemingly has some set prices and contracts for materials that should protect the company in the short term, especially after it just announced another year of record-breaking sales in its financial report for 2025.
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