Lego’s business returns to growth after tough year

COPENHAGEN, Denmark (AP) — For Lego, the pieces are coming back together.

The Danish toy maker said yesterday its revenue rose four per cent last year to 36.4 billion kroner (USD5.5 billion) after a tough 2017. Net profit increased 3.5 per cent to 8.1 billion kroner (USD1.2 billion).

Growth was in the “strong double-digits” in China and “in the low-single digits” in the United States (US) and western Europe.

CEO Niels B Christiansen said the privately-held company has been recovering from a slump in 2017, when sales fell for the first time since 2004 from record highs. He said the company had reached its goal “to stabilise the business”.

Lego had “delivered modest top- and bottom-line growth,” Christiansen said.

“We are especially encouraged by our progress given the challenges facing the toy industry and the departure of specialist retailers such as Toys’R Us” that went under last year, said Christiansen. “These shifts gave us the opportunity to strengthen our partnerships with retailers and find new ways to connect with shoppers and consumers across digital and physical channels.”

“We also grew market share in our largest markets around the world, bucking industry trends,” he added.