During the first half of 2021, Danish toy company Lego saw sales soar by 36%, revenue grow by 46% to 23 billion kroner (£2.63 billion) and net profit go up 140% to 6.3 billion kroner (£720m). The company CEO Niels Christiansen said:
“I am super happy with this result. We have seen a giant leap. He called it “a unique and strong result.”
Despite significant investments in long-term initiatives, its earnings report showed that the privately held group saw its operating profit more than double — up 104% to 8 billion kroner (£910m) compared to the same period a year ago.
The increased freight and raw material costs offset the operating profit for the six months that ended June 30. Lego benefited from fewer Covid-19-related restrictions compared with 2021 as factories operated uninterrupted and most retail stores reopened.
Mr. Christiansen noted:
“During the pandemic, our competitors had the same challenges as us. Our good result comes as a consequence of a long-term strategy.”
Double-digit consumer growth was delivered by all markets.
Though headquartered in Billund, western Denmark, Lego produces its toys in Mexico for its American markets and in China for its Asian market.
The factories in the Czech Republic and Denmark produce for Europe.
Looking ahead, Mr. Christiansen added:
“We continue to see strong demand for our products. We expect top-line growth to stabilize to more sustainable levels as people return to pre-pandemic spending patterns. This trend, combined with our plans to accelerate re-investments into the future of the business, is expected to result in more normalized profit levels moving forward.”
Founded in 1932 by Ole Kirk Kristiansen, its name is derived from the two Danish words LEg GOdt, which mean “Play Well”.
The brand name “Lego” was created without knowing that the word in Latin means “I assemble”.
However, this company does not issue quarterly reports.