Danish toy big Lego has notched up a double-digit hike in half-year gross sales, however noticed earnings slip again as a consequence of rising prices.
The group reported pre-tax earnings dropping 2% to 7.9 billion Danish kroner (£949 million) within the first six months of the 12 months because it confronted increased prices for uncooked supplies, vitality and freight.
Nevertheless it stated a 17% surge in revenues to 27 billion Danish kroner (£3.2 billion) – with shopper gross sales up 13% – helped offset the inflation pressures and permit it to largely preserve earnings steady on the working revenue degree, at 7.94 billion Danish kroner (£954 million).
For the second half of 2022, we proceed to see sturdy demand for our merchandise. Longer-term we count on top-line progress to normalise to extra sustainable rangesNiels Christiansen, Lego chief government
The group elevated costs for a few of its merchandise final month as a consequence of its increased prices, with plastic resin used to make its bricks only one space that has grow to be costlier for the group.
Niels Christiansen, chief government of the Lego Group, stated: “We bought off to a robust begin in 2022 and are very glad with our efficiency which landed above expectations after an distinctive 2021.
“Regardless of world uncertainties, we continued to ship increased shopper gross sales and double-digit top-line progress pushed by demand.”
He added that he expects shopper demand for Lego to carry up over the ultimate six months of 2022 and the essential Christmas interval, with sturdy gross sales to date this 12 months of its Star Wars, Harry Potter and Technic units.
Mr Christiansen stated: “For the second half of 2022, we proceed to see sturdy demand for our merchandise.
“Longer-term we count on top-line progress to normalise to extra sustainable ranges.”
The group has ramped up openings of its personal shops this 12 months, launching one other 66 within the first half to take its complete to 833.
It additionally confirmed the rollout of paper-based packaging will kick off within the second half because it strives to ditch plastic luggage by the top of 2025.
The Lego Group is celebrating its ninetieth anniversary this 12 months, having been based in Billund in 1932 by Ole Kirk Kristiansen, its identify derived from the 2 Danish phrases Leg Godt, which imply “play nicely”.
It nonetheless stays a family-owned agency and is headquartered in Billund.