Market News & Analysis
Lego sales up, following release of new ranges
City Index September 2, 2015 5:36 PM
Danish toy company Lego posted double-digit sales growth globally during the first half of the year, it has been revealed.
Lego said its revenue rose by 23 per cent to 14.1 billion kroner (£1.4 billion) during the six months to June 30th. Net profit for the period was up by 838 million kroner to 3.5 billion kroner.
In 2014, The Lego Movie was released, which boosted sales – meaning the comparisons could seem muted.
John Goodwin, chief financial officer for the company also noted that the weakness of the kroner and the euro also helped to provide a five per cent boost to sales. However, he said the company was pleased with the growth rate.
"We are very satisfied with the underlying growth rate of 18 per cent [...] versus the same period a year ago," he said.
Growth in Asian market
Lego's biggest sales increase was in Asia – this was part of the company's strategy, as it has been investing in the Asian market to help reduce its reliance on Europe and North American sales.
A new factory is set to open in Jiaxing, China, by the end of this year – this will provide an increase in production and help the firm meet Asian demand.
Top sellers and new products
More than 300 Lego sets were on sale during the first half of the year, according to Lego chief marketing officer Julia Goldin. The most popular ranges included Lego's City, Creator, Technic and Star Wars. The ninja-themed Lego Ninjago range is also a favourite, while a new Elves range and one based on the blockbuster film Jurassic World also contributed to the boost in sales.
Lego also says it is seeking sustainable alternatives to its production process. Currently, bricks are made from petrochemical-based materials, but a switch to sustainable materials for all of its toy ranges is scheduled to happen by 2030.
Kirkbi, the investment vehicle of Kirk Kristiansen, controls Lego. The firm also owns a 29.9 per cent stake in Merlin Entertainments, which operates the Legoland theme parks in Windsor, Billund in Denmark, the US, Germany and Malaysia.
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