Lego sees profit growth of 16 percent in first half despite slowing market
Date
8/29/2024 8:37:35 AM
(MENAFN) Lego, the largest toymaker globally, has reported a notable 16 percent increase in net profit for the first half of the year, demonstrating continued growth even amidst a broader market slowdown. The Danish company, renowned for its iconic plastic building blocks and known for its name, which means "play well" in Danish, achieved sales of 31 billion crowns (USD4.6 billion) during this period, marking a 13 percent rise. Net profit for the first half surged to 6 billion crowns, underscoring the company's robust performance.
CEO Niels Christiansen attributed this growth to a higher share of Lego Group's success, highlighting that the company introduced approximately 300 new products in the first half of the year. Additionally, Lego has benefitted from strong sales of toys linked to popular franchises like "Star Wars" and "Harry Potter." In a recent development, the company announced a partnership with Nike to co-develop products and content, further expanding its brand reach.
While Lego saw its strongest sales in Europe and North America, growth was slower in China. Christiansen expressed confidence in the Chinese market, stating that there is significant potential to further develop the Lego brand and open more stores. Notably, Lego remains under the control of the descendants of its founder and is not publicly traded on the stock market.
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