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LEGO experienced rapid growth in both sales and profits earlier this year as the Danish toy maker proved to be one of the winners of the Covid-19 pandemic.
In the first half of the year, sales increased 43% year-on-year to 23 billion DKr ($ 3.6 billion) and net income increased 140% to 6.3 billion DKr, solidifying its position as the world’s largest toy maker.
LEGO’s net profit was 10x, even though revenue was only 50% higher than the industry’s second-largest Transformers and My Little Pony maker Hasbro.
Lego CEO Neil Scrischansen has allowed large investments in products, brands and retailers rather than Covid-19’s pandemic spending on the surge in growth.
“Don’t expect 50% year-over-year growth, but in reality we think this is real growth and this is a new level where we can grow further,” he told the Financial Times. rice field.
Lego has recovered from almost the collapse of 2003 and is a toy, despite one idea: everything centered around plastic bricks, rather than the hundreds of products that make up the catalogs of listed rivals Hasbro and Mattel. Became the strongest company in the industry.It enjoyed it Strongest growth In the five years of 2020.
After a slight growth in 2017, Christiansen took over and invested heavily in product lines such as Monkey Kid, the first company based on Chinese culture, and Lego Set, which blurs the line between physical and digital. I went to. He also made an counter-intuitive bet on his own-branded shop, which opens hundreds across pandemics.
We recently opened a new flagship store in New York. It aims not only to sell Lego sets such as Super Mario, City and Harry Potter, but also to provide customers with a large model of the city and an interactive experience.
Christiansen said Lego is taking advantage of its strong position to further accelerate investment from potentially many stores in areas that seek to boost the quest to make all Lego blocks sustainable. He said he was aiming to do it. It made great strides when it was announced in June that it could make iconic bricks. Recycled drink bottle, Probably in the next 18-24 months. “We’re basically looking for areas that can be accelerated,” he added.
The CEO wasn’t focused on the six-month period, but with four years of responsibility, LEGO has grown at twice the pace of the broad toy market and now has products of interest to all age groups. He said he was happy to get it.
When asked if the company could stumble again, as in 2017, after 10 years of success, he replied: I’m always delusional and always worried — it’s my nature. But I’m relieved because we’re pushing for something that works. I didn’t do this to get a good half year. We did it to embark on a sustainable journey. Is there a half year that we could go down in the future? I think so. “
Lego is privately owned by the founder Christian Sen family and its foundation, and admits to them that Christian Sen wants to “invest in the long-term growth of the company.” He also emphasized how LEGO’s supply chain coped with high growth thanks to manufacturing in Europe, Asia and North America, as well as in pandemics.
Lego sales and profits surged to record highs
https://www.ft.com/content/d2e845f1-1484-4745-8e3e-4995ee85f772 Lego sales and profits surged to record highs