Lego profit rises 32%, revenue up 26% in first half

Lego's net profit rose 32% in the first half of the year to 8.6 billion Danish kroner, or $1.34 billion, while revenue rose 26% at constant exchange rates to 41.9 billion kroner.

Chief executive Niels Christiansen told AFP the result was stronger than expected “across the board” and said the family-owned Danish toy maker expected double-digit growth for the full year.

Christiansen said the performance was not driven by a single market, product or theme. But he said Lego had struggled to win over Chinese consumers, describing the Chinese market as difficult and saying consumers there were reluctant to spend.

Lego said the share of renewable and recycled materials it buys and uses to make its plastic bricks continues to grow, without giving specific figures. Christiansen said Lego was absorbing the higher cost itself and was not passing it on to consumers.

He also said higher oil prices, a key cost for plastic, had not affected the price of Lego bricks and did not destroy profitability. Christiansen said growth helped the company use factories more efficiently and improve productivity.