Lego see slowdown in profit growth even as sales surge 10 per cent

Danish toy company Lego on Tuesday posted a slight drop in net profit for the first half of 2016, even as turnover rose 10 per cent, lifted by strong sales growth in Europe and Asia.

Net profit for the six-month period was 3.49 billion kroner (523 million dollars), compared to the 3.55 billion kroner the family-owned group reported a year ago.

Net sales for the six-month period were 15.69 billion kroner, up 10 per cent measured in local currency - and excluding currency effects - compared to the corresponding business period in 2015.

While reporting double-digit sales in Europe and Asia, they were flat in the United States. The company has launched initiatives to "regain momentum" there, chief financial officer John Goodwin said.

The group - which is unlisted -  has about 18,500 employees worldwide, an addition of 3,500 employees compared to the corresponding business period in 2015. Production is based in Denmark, the Czech Republic, Hungary and Mexico. A plant in China will be fully operational in 2017. Mainstays in the product line-up include the classic plastic building blocks and lines like Lego City as well as products and tie-ins with Hollywood movies such as Star Wars. A recent addition is Lego Nexo Knights.

Last update: Tue, 06/09/2016 - 10:38
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