The LEGO Group has published its financial results for the first half of 2019, confirming that sales have risen by 5% when compared with the same period last year.
Revenue has also improved by 4% but operating profit has declined by 16%. This can be primarily attributed to increased investment in projects which intend to secure long-term growth.
You can read further highlights and comments from Niels B. Christiansen after the break...
- Global consumer sales grew by 5% in the six months to June 2019.
- Revenue has increased by 4% in the six months to June 2019.
- Operating profit was DKK 3.5 billion, a decline of 16%.
- This is because of increased investment in initiatives which are designed to ensure long-term growth.
- Consumer sales in Western Europe and the Americas grew in single digits while China enjoyed continuing double-digit growth.
- Best selling themes include City, Technic, Creator, Friends and Star Wars.
- Marvel's Avengers is also described as performing well and The LEGO Movie 2 contributed to consumer sales growth.
The LEGO Group CEO, Niels B. Christiansen, said “We are satisfied with our performance given the transformative shifts which continue to reshape the global toy industry. Against this backdrop, we continue to grow consumer sales and market share in our largest markets. This is thanks to our dedicated colleagues who are laser focused on collaborating with our valued retail partners and creating the very best brand experiences for fans of all ages.
“At the same time we’re making upfront investments to create a strong foundation from which to grow in the long term and inspire future generations. This includes opening new markets, expanding in China, creating innovative retail experiences and developing exciting new products and play experiences.
“We are pleased with the performance of our evergreen favourites such as LEGO City and LEGO Technic. We are also excited to explore innovative ways to bring the brick to life through digital play experiences such as new LEGO Hidden Side which blends the best of building with the awesomeness of augmented reality.”
Expanding in new markets
The LEGO Group is stepping up investments to expand its global physical and digital footprint in order to reach more children around the world. The Group will continue to invest in China and is on track to have more than 140 stores in 35 cities by the end of 2019.
It will also open an office in Mumbai in early 2020 from where the Group will expand its presence in India.
“We see an opportunity to reach more Indian children and families who value the benefits of learning through play. The growing middle class, importance of education and growing economy make India a logical next step in our efforts to reach many more children around the world,” said Christiansen.
Upgrading ecommerce and physical retail experiences
The Group is investing in upgrading its ecommerce platforms to improve the user experience for consumers and its service to retail partners. In addition, more than 70 stores carrying the LEGO brand will open outside of China during 2019, including a flagship store in Amsterdam in December 2019. It will be the brand’s fifth flagship store.
Christiansen said: “We are making these investments from a sound financial base to capture the opportunities being created by mega-trends such as digitalisation and global demographic and economic shifts which are reshaping the industry. Being ahead of these trends will allow us to inspire future generations of children."
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