Signal as much as myFT Day by day Digest to be the primary to find out about Lego information.
Lego loved dizzying progress in each gross sales and income within the first half of this yr because the Danish toymaker proved itself to be one of many winners of the Covid-19 pandemic.
It cemented its place because the world’s largest toymaker by growing revenues within the first half by 43 per cent yr on yr to DKr23bn ($3.6bn) and internet revenue by 140 per cent to DKr6.3bn, each information.
Though its revenues had been solely 50 per cent increased than the trade’s quantity two — Transformers and My Little Pony maker Hasbro — Lego’s internet revenue was 10 occasions larger.
Niels Christiansen, Lego’s chief govt, credited huge investments in its merchandise, model, and retail shops moderately than Covid-19 pandemic spending for the surge in progress.
“Don’t anticipate 50 per cent progress yr on yr on yr. However we truly assume that is actual progress, and that is extra a newfound degree that we are able to develop extra from,” he instructed the Monetary Occasions.
Lego has recovered from close to monetary collapse in 2003 to turn out to be the strongest firm within the toy trade by far, regardless of all the pieces centring round one thought — the plastic brick — moderately than the a whole lot of merchandise that make up the catalogues of listed rivals Hasbro and Mattel. It loved its strongest growth in 5 years in 2020.
Christiansen, who took over after a small blip in its progress in 2017, has invested closely in product traces corresponding to Monkie Child, the corporate’s first to be primarily based on Chinese language tradition, and Lego units that blur the road between bodily and digital. He has additionally put a counter-intuitive guess on own-brand outlets, opening a whole lot all through the pandemic.
It just lately opened a brand new flagship retailer in New York that goals not simply to promote Lego units corresponding to Tremendous Mario, Metropolis, or Harry Potter but in addition create an expertise for patrons with large-scale fashions of town and interactive experiences.
Christiansen stated Lego was trying to make use of its robust place to speed up its investments even additional in areas from probably extra shops to making an attempt to spice up its quest to make all Lego bricks sustainable. It had a big breakthrough in June when it introduced it might make its iconic bricks from recycled drink bottles, probably within the subsequent 18-24 months. “We’ll mainly be on the lookout for areas throughout the board the place we are able to speed up,” he added.
The chief govt stated he didn’t consider a single six-month interval however was happy that in his 4 years in cost Lego had grown at twice the tempo of the broader toy market, and now had merchandise for all age teams and pursuits.
Requested if he was involved that the corporate might stumble once more because it had in 2017 after a decade of success, he replied: “It’s a good query. I’m at all times paranoid, I’m at all times apprehensive — it’s my nature. However I’m comforted as we’re pushing issues that work. We didn’t do that to get an excellent half yr; we did it to get on a sustainable journey. May there be half-years sooner or later the place we could possibly be down? I believe so.”
Lego is privately owned by its founding Kristiansen household and their basis, and Christiansen credited them with eager to “put money into the long-term progress of the corporate”. He additionally underscored how Lego’s provide chain coped not simply with the pandemic but in addition the excessive progress because of manufacturing in Europe, Asia, and North America.