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Lego reports 60% increase in profits

12:30pm GMT, Tuesday, 18 August 2009

Lego enjoys an increase in profits as sales of the classic toy appear unaffected by the credit crunch. Lego enjoys an increase in profits as sales of the classic toy appear unaffected by the credit crunch.

Danish company Lego has announced a 60% rise in net profit in its half-yearly results as the classic toy enjoys a resurgence despite the ongoing global recession.

Lego made a pre-tax profit of 927 million Kroner (£106m), up from 564m Kroner made last year.

Sales also picked up in the first six months of 2009 with an increase of 23%, an improved sales picture across all markets and especially-encouraging figures in the US and Europe.

Classic product lines such as Lego City and Lego Star Wars remain the company’s bestsellers. New line Lego Power Miners was also launched successfully in the first half of 2009.

Internet and mail order sales have also increased considerably over this period.

Jørgen Vig Knudstorp, CEO of Lego, said: “The first half of 2009 produced a very satisfactory result. It is particularly pleasing to note the continued strong growth in our classic product lines.

“As the bulk of toy sales occur during the last few months of the year, considerable uncertainty remains about the full year result. But based on the fine results achieved in the first half of the year, we are optimistic with regard to prospects for the remainder of 2009.”

With the company’s recent growth and continued success, capacity at Lego is set to increase. Moulding capacity has been expanded during the first half of the year in Denmark, Hungary and Mexico, and the construction of a new warehouse facility in the Czech Republic began in June.

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