(Bloomberg) --
Lego A/S said Thomas Kirk Kristiansen -- the fourth generation of the billionaire family that owns Europe's largest toymaker -- has taken over as its chairman.
Kristiansen is replacing Jorgen Vig Knudstorp, a former chief executive at the company who will continue as a member of the board and develop the brand, Lego said on Wednesday.
The change was announced as Lego reported 3% growth in profit last year, bringing net income to 8.31 billion kroner ($1.24 billion). Revenue rose 6% to 38.5 billion kroner, a new record.
Thomas Kirk Kristiansen, 41, is one of three children of Kjeld Kirk Kristiansen, the 72-year-old grandson of Lego's founder. Since 2016, Kjeld Kirk Kristiansen has handed over more responsibilities to his only son.
The elder Kirk Kristiansen has already handed over a large chunk of his wealth to his three children, who own about $4.3 billion each, according to the Bloomberg Billionaires Index.
Knudstorp was the architect of Lego's turnaround last decade. The former McKinsey consultant simplified the company's products and managed to end years of losses to create the world's most profitable toymaker. But in the final stretch of his tenure as CEO, Lego reported a decline in revenue and profit after a period of rapid expansion resulted in a bloated cost base.
Read more: Lego Competes With Apple, Nike for Talent at New Danish Campus
On Wednesday, Lego said its 2019 results were helped by sales growing in “single digits” in the Americas and western Europe, while growth in China was in “strong double-digits.”
“We outperformed the toy industry and grew consumer sales and market share in all our largest markets,” CEO Niels B. Christiansen said in the statement.
Lego has targeted China as its main strategic growth market and now has 140 retail stores in the country. During 2020, Lego plans to open an additional 80 stores in 20 new Chinese cities.
For 2020, Lego expects “single-digit growth” at a pace exceeding the rest of the toy market. The performance will be driven by “product innovation, growth in established and strategic markets, such as China.” The toymaker didn't mention any impact from the coronavirus.
To contact the reporter on this story: Christian Wienberg in Copenhagen at cwienberg@bloomberg.net
To contact the editor responsible for this story: Tasneem Hanfi Brögger at tbrogger@bloomberg.net
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