For the Danish toy manufacturer Lego, net profit fell by 17.7 percent to 5.1 billion Danish crowns (just under 700,000,000 euros) in the first six months of this year. But profit remained high, sales rose slightly and the company managed to increase market share, even as the toy market declined and Chinese consumers returned to stores more slowly than expected.
Record results
Sales rose by roughly one percent to DKK 27.4 billion (€3.6 billion). Among the best-selling sets are Lego Icons, Lego Star Wars, Lego Technic and Lego City. Operating profit decreased by 19 percent to DKK 6.4 billion. The company’s economic results last year were a record.
“We are satisfied with our results, especially since it has been a challenging half-year for the toy industry,” said company director Niels B. Christiansen. Demand for Lego products exceeded industry demand and the company’s market share grew significantly. A strong financial position enables the group to realize long-term investments, especially in digital technologies, sustainability and production.
The richest
The company opened 89 new stores worldwide in the first half of the year. It has a total of 988 stores. In total, the company plans to increase the number of stores to about 1,050 by the end of this year. More than half of the newly opened stores will be in China, where the company should have more than 500 by the end of this year, Christiansen told Reuters.
The Lego company was founded in 1932 by Ole Kirk Christiansen and named it after the Danish words “leg godt”, which means “play nicely”. The Christiansens are now the richest Danish family, and the Lego company is the largest toy manufacturer in the world by revenue.
Source: ÄŒTK
