Lego sees strong H1 profits backed by Asia sales growth
- WuBo
0 Comment(s)
Print
E-mail Xinhua, August 31, 2012
COPENHAGEN, Aug. 31 (Xinhua) -- Danish toy manufacturer Lego bucked downward trends in the global toy industry to post robust profit in the first half year 2012, backed by strong sales growth in Asia, it said Friday.
Operating profit rose 41.7 percent in H1 2012 to 2.87 billion Danish kroner (485 million U.S. dollars) up from 2.03 billion kroner (342.2 million dollars) in the same period last year, the company said in its interim financial statement.
Revenue rose 24 percent to 9.1 billion kroner (1.53 billion dollars), up from 7.4 billion kroner (1.25 billion dollars) in the same period last year.
The result came against a backdrop of a global toy market which has seen a 4 percent decline in the first six months of this year.
The decline has not affected Lego, famous for its multi-colored building blocks for children, which attained double-digit sales growth to consumers in most of its international markets.
Its best sales growth for H1 was achieved in the Asia market, underscoring the company's goal of making the region a core market alongside USA and Europe, where sales rose 23 percent and 10 percent respectively, the company said in its financial statement.
Danish financial website Borsen.dk cited Lego Group CEO Joergen Vig Knudstorp as saying that the company grew by 50 percent in Asia in H1, and that its growth in China alone is over 100 percent per month.
The rapid sales growth means that Lego, a family-owned company, now has an 8 percent share of the global toy market, one percentage point up compared to H1 2011.
Among the biggest contributors to growth is the Lego Friends series for girls, which was launched in the autumn-winter season 2011, and whose sales are twice as high as expected, the company said. Many of the company's previous product lines aimed at girls have failed to take-off. Classic lines such as Lego City and Lego Star Wars remain among the company's best-selling products.
The company did not provide a forecast for its full year result as its high season typically falls in the second half of the year, usually around Christmas.
In line with its growth, the company, which mostly produces its own toys, will in 2012 employ 1,000 new personnel including many in Denmark, it said. Enditem
Go to Forum >>0 Comment(s)