Lego Shows Significant Growth During First Half of Year

ENFIELD, CT – The Lego Group reported 15 percent increase in revenue for the first half of 2014 due to successful sales of The Lego Movie products and an increased, international presence.

Revenue in first half of 2014 increased 15 percent compared with the same period last year measured in local currency (excluding the impact of foreign exchange rate changes). Revenue for the first half of 2014 increased by 11 percent in Danish Krone (DKK) to 11,504m compared with 10,408m for the same period last year. Operating profit (profit before financial items and tax) for first half 2014 was DKK 3,632m compared with DKK 3,246m for first half 2013, an increase of 12 percent year over year. Net profit for first half of 2014 was DKK 2,715m compared with DKK 2,381m for first half 2013, and cash flow from operating activities was DKK 3,383m compared with DKK 2,908m during the first half of 2013.

“The result for the first half of 2014 is an outcome of our ability to develop, launch and distribute Lego products, which children all over the world put at the top of their wish lists,” said Jørgen Vig Knudstorp, president and CEO, Lego Group. “We are particularly pleased that classics such as Lego City, Lego Creator, Lego Technic, and Lego Star Wars continue to deliver very strong growth globally.”

A significant contributor to sales growth in the first half of 2014 was the Lego Movie products launched in conjunction with the release of the film in theaters worldwide early 2014, according to the company. In the first half of 2014 the Lego Group in other regions where the company has stronger presence, including Europe, the Americas and Asia. The company recently opened its first factory and office in China. “Consumer sales growth in Europe, the Americas, and Asia was in the double digits, which is very satisfactory in the light of the global toy market which experienced a slow start in 2014,” said John Goodwin, executive vice president and CFO, Lego Group.

Growth throughout Asia varied from market to market with China seeing the most growth in consumer sales by more than 50 percent. The company is looking to Asia as a major contributor to its future growth and earlier this year, had its official ground breaking of the first Lego factory in China in Jiaxing. The company also opened a new office in Shanghai in April, which is one of five main offices globally for the Lego Group.

Globally, the company also expanded its Lego factory in the Czech Republic and opened a brand new factory was in Nyiregyhaza, Hungary in March. In addition to the Lego factory in Denmark, these mainly supply Lego products to children in the European markets. In Mexico, the company also expanded its factory in Monterrey in June. The Mexican factory mainly supplies the American markets, and the expansion is expected to create more than 1,000 new jobs.