Lego stabilises revenues amid softer profits & sales

Lego update

Lego has been able to stabilise revenue for the first six months of this year after a drop in 2017, thanks to demand for new products.

However, a weaker US dollar meant it reported softer sales and profit.

The trading update comes after the Danish toy maker and retailer pushed the “reset button” last year when it acknowledged its business had grown too complicated.

While global consumer sales grew one per cent in the half-year period, in Danish Kroner terms revenue dropped five per cent to 14.9 billion – a far cry from the 25 per cent growth it achieved in 2015.

Operating profit declined four per cent to 4.2 billion kroner, but on a constant currency basis it grew four per cent.

Lego’s attempts to recover were hampered by the collapse of Toys R Us in the US and the UK, but demand for new products such as the dinosaur-themed Jurassic World range helped to stablise revenue during the half-year period.

Revenue was also steadied by Lego’s fastest-growing ranges, such as the advanced Technic series, the warrior-themed Ninjago, the Creator range, and the Classic series.

“We are especially satisfied with our performance given the challenges of the changing retail landscape, including the closure of Toys R Us in the US, UK and Australia,” chief executive Niels B. Christiansen said.

“We are well positioned to capitalise on new opportunities to delight consumers and shoppers across all channels and are particularly encouraged by growth from activities across digital and e-commerce platforms.”

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