The Strategist

Lego's net profit up 140% for the half year

09/29/2021 - 07:29

The Lego Group reported strong growth in its financial results in the first half of the year. Net income rose 140% to more than $990 million, operating income rose 104% to $1.3 billion, revenues rose 46% to $3.6 billion and consumer sales showed growth of 36%.

The Lego Group business was one of the few that weathered the COVID-19 pandemic unscathed and even reached record levels thanks to families spending more time at home amid restrictions and looking for ways to keep kids occupied with something fun. 

Partly because of this, Lego Group ended last year with record revenues, which rose 13% year-on-year to $7 billion from 2019.

In the first half of this year, the company managed to open 60 new branded shops, 40 of them in China, where the company's sales are growing the most. Among the most popular sets in the world are the classic Lego City, as well as themed sets based on the Star Wars and Harry Potter movies. 

The Lego Group forecasts that the company's figures will be high in the second half of the year as demand for its products continues. But in the long term, the company said in a press release, this growth will stabilise somewhat as consumers return to the usual, pre-pandemic level of spending on such products after the pandemic.