Connect with us

Hi, what are you looking for?

World News

Lego builds on rise in sales but profits slump due to higher costs 

Strong demand: But Lego reported profits down 2% to £949million in the first six months of the year as it faced higher costs for raw materials, energy and freight

Lego sees a surge in sales, but profits plummet as the price of plastic and other costs soar

Danish toy giant Lego posted a strong increase in half-year sales, but saw profits decline due to rising costs.

It reported pre-tax profits down 2% to £949m in the first six months of the year as it faced higher costs for raw materials, energy and freight .

But a 17% rise in revenue to £3.2billion, with consumer sales up 13%, offset inflationary pressures by keeping profits steady at operating profit level, at £954million. pound sterling.

Strong demand: But Lego reported profits down 2% to £949million in the first six months of the year as it faced higher costs for raw materials, energy and freight

Strong demand: But Lego reported profits down 2% to £949million in the first six months of the year as it faced higher costs for raw materials, energy and freight

Lego has raised some prices due to its higher costs, with the plastic resin used to make its bricks being just one area that has become more expensive.

Boss Niels Christiansen said: “We are off to a good start in 2022 and are very pleased with the performance which exceeded expectations after an outstanding 2021.”

It expects consumer demand to hold up in the final six months of 2022 and Christmas, with strong sales of its Star Wars, Harry Potter and Technic sets.

It launched 66 stores in the first half of the year and now has 833. It is celebrating its 90th anniversary, having been founded by Ole Kirk Kristiansen – its name comes from the Danish words ‘Leg’ and ‘Godt’, which mean ‘to play well’.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Health

It’s fun to be a student, especially if you’re motivated to achieve. However, it’s getting harder for students to focus in today’s busy society....

Business

When you apply for a personal loan, lenders first determine your credit score to know how credible and reliable you are. This means that...

Finance

Loans against property are a common option for people needing high-value cash. Given that its interest rates are almost 3% to 4% more than...

Business

Zion Market Research has released a new report that projects the Endotracheal Tube Securement Devices Market: Global Industry Perspective, Comprehensive Analysis and Forecast, 2018-2025. The year...