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Lego operating profit soars 104%

The company said the increase on last year was due to ‘fewer Covid-related restrictions’, and seeing ‘the benefits of multi-year investments in e-commerce’

Lego has revealed an operating profit for the first half of the year of DKK 8bn (£929m), an increase of 104% compared to H1 2020. 

Revenue for the period grew 46% to DKK 23bn (£2.7bn) compared with the same period in 2020, while consumer sales grew 36%, outpacing the toy industry and driving market share growth globally and in all major markets.

The company said the increase on last year was due to “fewer Covid-related restrictions”, and seeing “the benefits of multi-year investments in e-commerce”.

E-commerce sales across it’s platforms grew 50% compared with the same period last year.

The company reported that all market groups delivered double-digit consumer sales growth, which it attributed to “a diverse portfolio which appealed to builders of all ages and interests”.

So far In 2021 Lego has opened 60 new stores, 40 of which are located in China. This brings the total number of Lego retail stores to 737, with 291 of those located in China.

The company also launched a new retail store format which will be introduced to around 60 stores during the second half of 2021.

The Lego Group CEO, Niels B. Christiansen, said: “We are very pleased with the progress we made across all areas of the business during the first half. Our performance was driven by strong demand for our portfolio, which has attracted new builders to the Lego brand. 

“Our year-on-year growth benefited from fewer Covid-related restrictions compared with 2020 as our factories operated uninterrupted and the majority of retail stores re-opened.”

He added: “We also saw the benefits of multi-year investments in e-commerce, product innovation and a global supply chain network. Our strong financial performance now allows us to accelerate strategic investments in sustainability and digitalisation.”

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