The strong demand for building blocks brought the Danish toy giant Lego a healthy growth in sales in the first half of 2022. That helped the company offset cost inflation in raw materials, energy and freight, Lego said in a statement. In the first six months of the year, the family company's turnover rose by 17 percent to 27 billion crowns (around 3.6 billion euros).
The operating profit remained stable compared to the same period last year at 7.9 billion Danish kroner (almost 1.1 billion euros). At around 6.2 billion crowns (almost 834 million euros), net profit also remained at the level of the first half of 2021.
"We got off to a good start in 2022 and are very pleased with our performance, which exceeded our expectations after an exceptional 2021," said Lego CEO Niels B. Christiansen, according to the release. Products from the Lego Star Wars, Lego Technic, Lego Icons, Lego City, Lego Harry Potter and Lego Friends series were particularly popular with customers. Sales have increased primarily in America, Western Europe and the Asia-Pacific region.
In the first half of the year, the Lego Group focused on expanding production capacities, which had reached their limits in 2021, it said. "For the second half of 2022, we expect continued strong demand for our products," explained Christiansen. "Longer term, we expect growth to normalize at a more sustainable level."
According to the company, 66 new Lego stores opened in the first six months of the year, 46 of them in China. In total, the group operates 833 stores worldwide. In April, Lego announced a long-term partnership with US software company Epic Games to expand its digital portfolio.
Lego was founded in 1932 in Billund, Denmark by Ole Kirk Kristiansen. The name of the family business derives from the Danish words "Leg Godt" ("play well"). Lego sells its products in more than 130 countries worldwide. One is "grateful that the game with Lego remains relevant after almost a century," said Lego boss Christiansen according to the announcement.