Danish LEGO Group builds strong growth in global revenue

The LEGO Group published its half year results on Wednesday, which revealed that the learning development and educational toy manufacturer achieved global sales growth of 18% and delivered a turnover of DKK14,142m in the first six months of 2015.

Net profit for the first half of 2015 was DKK3,553m compared with DKK2,715m for the same period last year, while the company’s revenue for the first half of 2015 increased by 23% in DKK to DKK14,142m in comparison to DKK11,458m in the first half of 2014.

Following the expansion of LEGO factories around the globe, the company said its first half sales were driven by double-digit growth across all geographical regions, as well as strong product innovation on themes such as LEGO NINJAGO, which is said to have become an evergreen LEGO theme. Lines such as LEGO Creator, LEGO City, LEGO Technic and LEGO Star Wars continue to deliver very strong global results. New launches such as LEGO Elves and LEGO Jurassic World products have also performed well.

Jørgen Vig Knudstorp, LEGO Group president and CEO, commented: “We are pleased that we have again been able to develop exciting and fun play experiences that really appeal to children all over the world. A strong performance across the entire product range enabled us to deliver a highly satisfactory result for the first half of 2015. It is a great achievement and a result of the hard work of more than 15,000 LEGO colleagues around the world. This is especially encouraging since we compare to 2014 when The LEGO Movie products boosted our performance. While it is still early to estimate full year results, we expect another satisfactory result for the full year.”

Loren I. Shuster, executive vice president and chief commercial officer also said “While all our regions experienced double digit growth during the first half of 2015, it is particularly satisfactory that Asia saw the highest growth rates given the considerable investments we are making there to further the company’s globalisation.” 

John Goodwin, executive vice president and chief financial officer, added: “The weakness of the Danish Krone and the Euro versus most major currencies around the globe has had a significant impact on our results, with our DKK reported sales figures increasing an additional 5% purely due to currency movements. Nevertheless, we are very satisfied with the underlying growth rate of +18% (excluding the impact of currency effects) Versus the same period a year ago.” 

In addition, during the first half of 2015, the LEGO Group said it made a significant investment of DKK1bn to fund its search for sustainable materials through the establishment of the LEGO Sustainable Materials Centre in Billund, Denmark. This centre will lead the work to reach the LEGO Group’s aim of finding and implementing sustainable alternatives to all the materials it currently uses, by 2030. The company also stated that materials used to manufacture LEGO bricks at present are all petro-chemically based.

The LEGO Group has also appointed a significant number of new employees during the first six months of this year and currently employs over 15,000 people globally. The company has more than doubled its staff numbers since 2010.

LEGO has expanded its packing facility in the Czech Republic and plans to commence packing activities in its new factory in China, which will supply the company’s expanding Asian market. In addition, LEGO’s manufacturing facility in Jiaxing, China now has more than 230 employees, with this number expected to increase to 600 by the end of 2015. This factory is expected to be fully operational in 2017.

Based in Billund, Denmark, LEGO Group is a privately held company that is still owned by the Kirk Kristiansen family who founded it in 1932. LEGO bricks are all part of the LEGO system, which essentially means that the bricks can easily be combined in innumerable ways – and just as easily be dismantled.

LEGO’s philosophy is that ‘good quality play’ enriches a child’s life and lays the foundation for later adult life. The company believes that play is a key element in children’s growth and development and stimulates the imagination and the emergence of ideas and creative expression. All its products are based on this underlying philosophy of learning and development through play.