Lego's sales skyrocket
By Staff -- Playthings, 8/17/2009 2:18:00 PM
BILUND, Denmark—The Lego Group saw its first half sales jump 23 percent worldwide, raising its pre-tax profits by 64 percent.
Net sales for the first half of the year were 4.37 billion Danish kroner, worth $825.4 million in US dollars, compared with 3.55 billion kroner for the first half of 2008.
Profit before taxes for the first six months rose 64 percent to 927 billion kroner or $175.32 million. The improved profit picture was helped in part by higher sales but also by “careful management of costs,” the company said.
Sales were paced by the company’s Lego City and Lego Star Wars lines, the company said, adding that “there have been improvements in virtually all product lines,” including its new Lego Power Miners play theme, for which sales were “well ahead of expectations.”
In addition to improved sales at traditional retail partners, Lego also pointed to its direct sales to consumers via its branded retail stores plus internet and mail order sales as bright spots during the period.
“The first half of 2009 produced a very satisfactory result,” said Jørgen Vig Knudstorp, Lego Group CEO. “It is particularly pleasing to note the continued strong growth in our classic product line.”
During the first half, the toymaker ramped up its product capacity, with improvements at its production facilities in Denmark, Hungary and Mexico, plus began construction of a new warehouse facility at its production site in the Czech Republic.
"Based on the fine results achieved in the first half of the year, we are optimistic with regard to prospects for the remainder of 2009," Vig Knudstorp added.
pictured: Lego's Power Miners Mine Mech set
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