Lego, the world’s largest toymaker, reported record sales Wednesday from robust demand for its colorful plastic bricks despite rising costs and inflation hitting consumers.
The Danish company, celebrating its 90th birthday this year, said revenue surged 17% in the first half of 2022 to hit $3.5 billion. Consumer sales grew 13% in all market groups, with strong performances in the Americas, Western Europe and Asia Pacific, Lego reported.
Themed products such as Harry Potter, Star Wars and Technic sets helped operating profit for the period to remain steady from last year at about $1 billion.
“We are grateful that after nearly a century Lego play remains relevant and continues to inspire families and children,” CEO Niels Christiansen said. “Despite global uncertainties, we continued to deliver higher consumer sales and double-digit top line growth driven by demand for our strong portfolio.”
“We enter the peak Christmas season with good momentum,” he added.
The company has been on a growth and profit maximization spree. In the first six months of 2022, it opened 66 stores worldwide, 46 of them in China, bringing its worldwide total to 833.
Prompted by higher costs of energy, freight and plastic resin, Lego in August increased prices for some of its products, although items aimed at children had mostly been shielded against price increases, Christiansen said.
The company reported that its growth outpaced the global toy sector growth of 1%.
The family-owned company also has made commitments to improve its carbon footprint. In June, Lego announced it will invest $1 billion on a carbon-neutral factory in Virginia — the second one in the works after announcing plans last year to open one in Vietnam. Both factories will source materials from renewables onsite.
The company also said it will begin rolling out paper-based packaging in Europe in the second half of the year and wants to eliminate plastic bags by the end of 2025.
Credit: Source link