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Lego reports double-digit growth in H1

The Lego Group has reported that revenue rose by 7% to DKK 15.7bn (£1.87bn) in the six months ended June 30, 2020. 

In the same period, consumer sales grew by 14% against the year before, while operating profit was DKK 3.9bn (£466m), an increase of 11% against the first half of 2019. 

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It comes as the toy group delivered double digit consumer sales growth in its major market groups, including the Americas, Western Europe, Asia Pacific and China. 

According to the group, operating profit growth was driven by “strong” sales, offset by “bold investments” in long-term growth initiatives and higher freight costs associated with shipping products following temporary, government-mandated factory closures in Mexico and China. 

Nonetheless, underlying net profit rose by 13%, while free cash flow was “strong” at DKK 4.1bn (£353m). 

In its latest trading update, the group also reported 100 million visitors to its e-commerce website, which was double the visitors reported in the first half of 2019.

Following its results, Lego has announced plans to open 120 new stores by the end of the year, having already opened 46 stores across its global estate in the first half of 2020.

The Lego Group CEO, Niels B. Christiansen said: “The strong results are due to our incredible team. When COVID-19 closed stores and offices, our colleagues did everything they could to stay safe and bring play to children and families around the world. 

“During the first half, we saw the benefits of our investments in long-term growth initiatives such as e-commerce and product innovation. Many of the major trends shaping our industry, such as digitalisation and e-commerce, are accelerating as a result of the pandemic.” 

He added: “We saw strong growth in digital and traditional play, a rapid shift to e-commerce and the importance of having a truly global operating model. While retail has transformed during the past six months, we continue to see great opportunity for an omnichannel model. 

“We will continue to invest in upgrading our e-commerce capabilities to support both our retail partners and own platform and continue to invest in creating fantastic physical brand experiences for shoppers and fans.”

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