Lego racks up big rise in sales, but profits plummet as price of plastic and other costs skyrocket
Danish toy giant Lego has posted a big jump in half-year sales, but profit has slipped due to rising costs.
It reported that pre-tax profit fell 2 per cent to £949m in the first six months of the year as it faced higher raw material, energy and freight costs.
But a 17% rise in revenue to £3.2bn, with consumer sales up 13%, offset inflationary pressures by keeping earnings flat at the operating profit level, at £954m.
Strong demand: But Lego reported profit fell 2% to 949 million pounds in the first six months of the year as it faced higher costs for raw materials, energy and freight.
Lego has raised some prices due to its higher costs, and the plastic resin used to make its bricks is just one area that has gotten more expensive.
Boss Niels Christiansen said: “We got off to a good start in 2022 and are very pleased with the performance that exceeded expectations after an exceptional 2021.”
He expects consumer demand to continue through the last six months of 2022 and Christmas, with strong sales of his Star Wars, Harry Potter and Technic games.
It launched 66 stores in the first half and now has 833. It is celebrating its 90th anniversary, having been founded by Ole Kirk Kristiansen; his name comes from the Danish words ‘Leg’ and ‘Godt’, meaning ‘to play well’.
