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
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’.