Business

Revenue up 17% in the first half of 2022


Lego Star Wars toys on display inside Toys “R” Us Inc. in Paramus, New Jersey, USA, on Tuesday, November 26, 2019.

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Lego sales are building on growth during the pandemic, fueled by popular sets from Lego Star Wars and Lego Harry Potter.

On Wednesday, the privately held Danish bread maker said revenue for the first six months of the year rose 17 percent to 27 billion Danish dollars, or about $3.5 billion.

Lego is one of the toy companies increased sharply during the pandemicbecause consumers of all ages are drawn to its buildings for entertainment.

CEO Niels Christiansen has touted the company’s wide selection of toys and their appeal across generations as sales continue to soar.

“This is the broadest portfolio we’ve ever had,” Christiansen said of Lego’s current portfolio. “It’s preschool, it’s kids, it’s girls and boys, it’s teenagers, it’s adults – it’s really a super strong portfolio across the board.”

In addition to the best-selling Star Wars and Harry Potter models, Lego has seen strong performance in the homegrown Lego Technic and Lego City.

“I think we make sure we’re going to tap into different points of passion,” Christiansen said. “You can buy a Formula One car or a Ferrari, or you can have a Duplo set to fit your bathtub.”

Lego’s strong earnings results come despite a series of global headwinds including war in Ukraine, store and factory closures in China due to the Covid-19 pandemic and rising inflation related to cost of raw materials, energy and freight.

Christianen said strong sales have allowed the company to weather these financial difficulties. Net profit from January to June 30 came in at $6.2 billion Danish krone, or about $802 million, which is essentially in line with the start of the year. During the same period last year, Lego made a net profit of 6.3 billion Danish dollars, or about 812 million dollars.

The company has also reaped the benefits of opening stores in new markets, particularly in China. In the first half of the year, the company opened 66 stores worldwide, including 46 in that region.

“We’re also making a pretty big investment in our factory in China,” Christiansen said. “We are currently expanding our foundry, packaging and warehousing capacity there to sustain future growth.”



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