// Lego profits rise in the first six months of the year as shoppers stayed home
// Sales rose 43% to £2.6bn during the period
// There have been warnings of stock shortages this Christmas
Lego has seen its profits more than double in the first six months of the year as shoppers stayed at home even after lockdown.
The toy retailer said sales rose 43 per cent to DKr23 billion (£2.6 billion) in the first six months of the year, while net profits surged 140 per cent to DKr6.3 billion.
There have been warnings of stock shortages this Christmas due to the ongoing driver shortage and higher transport costs.
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However, Lego chief executive Niels Christiansen remains confident that the company won’t face any problems.
“We don’t expect any particular issues but we are of course, as is everybody, dependent on transportation and customs into the UK but as it looks right now we don’t have any particular concerns,” he said.
Christiansen said the company did not plan to make any “extraordinary” price rises to mitigate the impact of higher freight and raw material costs.
He added that the strong financial performance would lead it to speed up investment in environmental initiatives.
Lego recently unveiled its first bricks made from recycled plastic bottles and, after a successful trial, said paper bags would replace single-use plastic in boxes in 2022.
The company said sales were up by more than 10 per cent in all markets with web sales up 50 per cent.
Christiansen anticipated the strong run would continue for the rest of the year but suggested the stellar growth would “stabilise to more sustainable levels” as people return to pre-pandemic spending patterns.
“This trend, combined with our plans to accelerate reinvestments into the future of the business, is expected to result in more normalised profit levels moving forward,” he said.
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