Lego reports double-digit growth

Katie Roberts

By Katie Roberts

September 8th 2010 at 10:14AM
Lego reports double-digit growth

Half‑year results show strong growth across all of the firm's markets.

The results show net sales in the first six months of 2010 rose 34 per cent compared to the same period last year.

All Lego Group markets recorded double‑digit growth rates in their sales during the period, with particularly high growth in focus markets US and Eastern Europe. The results put the company on schedule for a sixth consecutive year of growth.

Pre-tax profit for the period was DKK 1,559m, compared with DKK 927m for the first half of 2009.

Net sales for the first half of 2010 were DKK 5,863m compared with DKK 4,374m in the first half of 2009

At the end of the period, Lego's equity was DKK 2,703m compared with DKK 1,740m at the end of the first half of 2009 

The firm puts the results down to the substantial growth in sales along with the fact that costs remain strictly under control.

Classic ranges such as Lego City, Lego Duplo, Lego Star Wars, Lego Creator and Lego Technic maintained growth.

Lego Games were introduced last year in the UK and German‑speaking countries, and will launch across the rest of the world this year following a positive reception.

Similarly Lego Atlantis, the new play theme, has generated higher sales than expected.

Finally, the new licensed products, Lego Toy Story and Lego Prince of Persia, were launched during the period and have been extremely well received by consumers.

The global market for traditional toys, which has been stagnant in recent years, grew by around two per cent during the first half of 2010, with Lego's market share increasing to about five per cent of the global market.

Marko Illincic, MD of Lego UK and Ireland, said: “The first six months of 2010 have once again seen strong results for Lego UK and with the bulk of toy sales taking place from now until December we are predicting another growth year. 

"The launch of new Harry Potter products as well as Lego Universe, our major digital product launch, will further consolidate our positioning. The market is showing early signs of recovery but it is still too early to tell what will happen in the next few years. 

"As such, the Lego Group is taking stringent measures to ensure spending remains under control and the company’s successive growth over the past five and half years continues.”