COPENHAGEN (AFP) – Danish toy giant Lego said yesterday its net profit fell in the first half of the year but its market share grew as sales rose slightly.
The company’s revenue reached DKK27.4 billion (USD4 billion) between January and June as it “grew 10 per cent faster than the market”, chief executive Niels Christiansen told AFP in an interview.
“We’ve been able to outpace the market by the same rate as we’ve done over the last three, four, five years,” he said.
While net profit dropped by 17.7 per cent to DKK5.1 billion during the period, Lego’s revenue rose by one per cent, coming on the heels of three years of record-breaking sales boosted by lockdowns during the COVID pandemic.
The feat was attributed to the success of its franchises Star Wars and Lego Icons, as well as its flagship product ranges Lego City, Lego DREAMZzz and Lego Technic.
While sales rose in the United States (US), growth slowed in China.
“The return to more normal conditions, where people go into stores and spend again, has been slower in China than what we anticipated,” Christiansen said.
During the first half of the year, Lego opened 89 new stores, including 54 in China where the company aims to expand further, bringing the overall number of stores worldwide to 988.
The coloured brick maker said it expects to open 150 stores this year worldwide, including 85 in China.
