Lego Lego posts 15% sales growth in first half

COPENHAGEN Reuters- Lego posted double-digit sales growth in the first half of the year, driven by new store openings and robust demand for its colourful plastic bricks despite rising costs and inflation hitting consumers.

The family-owned company said it had outpaced the toy industry in all major markets during the first six months of the year, when revenue increased 17% to 27 billion Danish crowns and operating profit was steady from last year's 7.9 billion crowns.

Chief Executive Niels Christiansen told Reuters that we've gained market share every month in all of our major markets, and we're growing faster than our competitors.

He said that we enter the peak Christmas season with good momentum.

The total number of Lego stores was 833 worldwide in the six months, and the Danish company opened 66 new stores in the six month period, of which 43 were in China.

Despite higher costs of energy, freight and plastic resin, Lego in August increased prices for some of its products, even though products aimed at children had mostly been shielded against price increases, Christiansen said.

Consumer sales of Lego increased by 13% in the six month period compared to 1% growth in the global toy market, Christiansen said.

The success of Lego was due to a product portfolio catering to both adults and children, and a decade-old strategy of placing production close to key markets, which has been beneficial for the global retail industry as it has faced supply chain issues, Christiansen said.

Its popular toys included Star Wars, Harry Potter and Technic sets in the first half of the year.

Christiansen said that part of the company's salary increases will be moved forward next year to help employees through a winter with high energy bills.

Lego will invest more than $1 billion in the U.S. brick plant.