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Sales increase of 36%, earnings increase of 46% in the first half of the year


Sales increase of 36%, earnings increase of 46% in the first half of the year

COPENHAGEN, Denmark (AP) — Danish toy maker Lego said Tuesday that consumer sales rose 36% in the first half of 2021, revenue increased 46% to 23 billion krone ($3.62 billion) and net profit rose 140% to 6.3 billion krone ($992 million).

“I am super happy with this result,” CEO Niels B. Christiansen told the Associated Press. “We have made a huge leap.” He called it “a unique and strong result.”

In its earnings report, the privately held group reported operating profit that more than doubled – up 104% to 8 billion krone ($1.26 billion) compared to the same period last year – despite significant investments in long-term initiatives. Operating profit for the six months to June 30 was also reduced by higher freight and raw material costs.

The growth, Christiansen said, was also due to fewer COVID-19-related restrictions compared to 2020, as Lego factories operated without interruption and most retail stores reopened. He noted that during the pandemic, “our competitors faced the same challenges as we did. Our good result is the result of a long-term strategy.”

All market groups achieved double-digit sales growth in the consumer sector.

Lego is headquartered in Billund, western Denmark, and produces in Mexico for the American market and in China for the Asian market. Production for Europe comes from factories in the Czech Republic and Denmark.

Looking to the future, Christiansen said: “We continue to see strong demand for our products.”

“We expect revenue growth to stabilize at more sustainable levels as people return to their pre-pandemic spending patterns,” he said. “This trend, combined with our plans to accelerate reinvestment in the future of the business, is expected to lead to more normal profit levels.”

Lego was founded in 1932 by Ole Kirk Kristiansen and its name is derived from the two Danish words LEg GOdt, which mean “play well”. The brand name was created without knowing that the word Lego means “I build together” in Latin.

Lego does not publish quarterly reports.

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