The LEGO Group has reported an increase in revenue of 15 per cent in the first half of 2014.
Double digit growth across all regions delivered a turnover of 11,504m DKK in the first half, fuelled by the success of The LEGO Movie products.
Operating profit for the first half of 2014 was DKK 3,632m compared with DKK 3,246m for the first half of 2013, an increase of 12 per cent year over year.
Net profit for the period was DKK 2,715m (compared to DKK 2,381m in 2013).
"Our revenue in the first half of 2014 has more than tripled compared to first half year revenue six years ago, in 2008," said LEGO Group President and CEO Jørgen Vig Knudstorp. "It is a very satisfactory result that shows our significant growth in recent years in a tough economic environment.
"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.
"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, with products launched in conjunction with the movie worldwide in early 2014.
"We are thrilled by the reception of The LEGO Movie products that provided a significant boost to our sales during the first half of 2014,” says EVP and CFO John Goodwin.
“The LEGO Movie celebrated the creative potential in us all, which is also the foundation of any LEGO product we develop. Every LEGO set must offer a versatile play experience that fosters creative building, and this is what we continually strive to deliver to children all over the world.”
Goodwin also confirmed that consumer sales growth in Europe, the Americas and Asia was in the double digits. China saw the most significant growth in consumer sales in the region by more than 50 per cent.
"There is a huge potential in Asia, and we are still learning and in the process of building our capabilities in the region," commented Bali Padda, EVP and COO.
Other milestones in the period included expansions of the LEGO factory in the Czech Republic, while a brand new factory was inaugurated in Nyiregyhaza, Hungary in March. Alongside the LEGO factory in Denmark, these mainly supply LEGO products to children in the European markets.
In Mexico, expansion of the LEGO factory in Monterrey was completed and inaugurated in June. The Mexican factory mainly supplies the American markets, and the expansion is expected to create more than 1,000 new jobs.
“We have been investing and we will continue to invest significant resources in further globalising the company, which is a precondition for our future ability to not only create great LEGO experiences for children all over the world, but also our ability to build a culturally diverse organisation where we can attract and develop global talent. Ultimately this is what will ensure the future success of the LEGO Group,” continued Jørgen Vig Knudstorp.
