Revenue jumps 17% in first half of 2022

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

On Wednesday, the privately held Danish toymaker stated 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 numerous collection of toys and their attraction throughout generations for the continued gross sales surge.

“It’s the broadest one we ever had,” Christiansen stated of Lego’s present portfolio. “It is preschool, it is youngsters, 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 feel that we make certain we faucet into completely different ardour factors,” Christiansen stated. “You should buy a Components One automotive or a Ferrari, or you may have a Duplo set that matches in your bathtub.”

Lego’s robust earnings outcomes come regardless of a collection of world headwinds together with battle 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 stated robust gross sales have allowed the corporate to return out forward of those monetary difficulties. Web revenue between January and June 30 reached $6.2 billion Danish krone, or about $802 million, primarily in step with 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. Through the first half of the yr, the corporate opened 66 outlets worldwide, together with 46 in that area.

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