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Income jumps 17% in first half of 2022

Lego Star Wars toys sit on show inside a Toys “R” Us Inc. retailer in Paramus, New Jersey, U.S., on Tuesday, Nov. 26, 2019.

Bloomberg | Getty Photographs

Lego gross sales are constructing on pandemic-era development, boosted by standard units from Lego Star Wars and Lego Harry Potter.

On Wednesday, the privately held Danish toymaker mentioned income in the course of the first six months of the yr jumped 17%, reaching $27 billion Danish krone, or about $3.5 billion.

Lego was among the many toy firms that saw massive gains during the pandemic, as customers of all ages gravitated towards its constructing units for leisure.

CEO Niels Christiansen touted the corporate’s various number of toys and their attraction throughout generations for the continued gross sales surge.

“It’s the broadest one we ever had,” Christiansen mentioned of Lego’s present portfolio. “It is preschool, it is children, it is ladies and boys, it is teenagers, it is adults — it is truly throughout the board that the portfolio is tremendous robust.”

Along with top-selling Star Wars and Harry Potter fashions, Lego has seen robust efficiency in its homegrown Lego Technic and Lego Metropolis.

“I believe that we be sure that we faucet into completely different ardour factors,” Christiansen mentioned. “You should purchase a System One automobile or a Ferrari, or you possibly can have a Duplo set that matches in your bathtub.”

Lego’s robust earnings outcomes come regardless of a sequence of world headwinds together with conflict in Ukraine, retailer and manufacturing facility shutdowns in China because of the Covid-19 pandemic and rising inflation related to prices of uncooked supplies, power and freight.

Christiansen mentioned robust gross sales have allowed the corporate to come back out forward of those monetary difficulties. Web revenue between January and June 30 reached $6.2 billion Danish krone, or about $802 million, basically according to year-earlier ranges. Throughout the identical interval final yr, Lego generated internet revenue of $6.3 billion Danish krone, or about $812 million.

The corporate additionally has been reaping the advantages of opening shops in new markets, significantly in China. In the course of the first half of the yr, the corporate opened 66 retailers worldwide, together with 46 in that area.

“We’re making fairly vital investments in our manufacturing facility in China, as properly,” Christiansen mentioned. “Proper now, we’re increasing molding and packing and warehousing capability there to additionally maintain development coming ahead.”

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