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LEGO

Lego now the world’s largest toy company

Success of the Lego Movie helps Danish company top Mattel, knocking Barbie off her perch. Sales in China alone rose by over 50 percent.

Lego now the world's largest toy company
A boy runs in front of Lego-made Darth Vader and Luke Skywalker at LegoLand in Tokyo. Photo: Rie Ishii/Scanpix
Danish toy maker Lego has taken the top spot as the world's biggest maker of toys by sales, overtaking Barbie doll-maker Mattel, its first-half results showed on Thursday.
 
First-half sales rose 11.0 percent to 11.5 billion kroner (1.55 billion euros, $2.03 billion).
 
Performance was boosted by the Lego Movie product line which was launched together with the group's eponymous feature film earlier this year.
 
"It is too early to say if the strong performance will be reflected in the full year results," chief financial officer John Goodwin said in a statement.
 
"The majority of Lego sales to consumers happen in the second half of the calendar year in a short time span of a few weeks leading up to the holiday season," he said.
 
Net profit rose 14 percent to 2.7 billion kroner, also putting it ahead of Mattel, which reported disappointing first-half results in July as sales of Barbie continued to decline.
 
Mattel bought Canadian Lego rival Mega Brands — which makes plastic building blocks directly in competition with the Danish group's products — for $460 million in February.
 
Lego is looking to grow in Asia, where sales are relatively small compared to sales in the mature markets of Europe and North America.
 
"China saw the most significant growth in consumer sales in the region by more than 50 percent," the company said.

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BUSINESS

Denmark’s toy giant Lego offers staff bonus after bumper year

Danish toymaker Lego, the world's largest toymaker, Denmark's Lego, said on Tuesday it will offer its 20,000 employees three extra days of holiday and a special bonus after a year of bumper revenues.

Lego is rewarding staff with a Christmas bonus and extra holiday after a strong 2022.
Lego is rewarding staff with a Christmas bonus and extra holiday after a strong 2022. File photo: Ida Guldbæk Arentsen/Ritzau Scanpix

Already popular globally, Lego has seen demand for its signature plastic bricks soar during the pandemic alongside its rapid expansion in China.

“The owner family wishes to… thank all colleagues with an extra three days off at the end of 2021,” the company said in a statement.

The unlisted family group reported a net profit of more than 6.3 billion Danish kroner (847 million euros) for the first half of 2021.

Revenues shot up 46 percent to 23 billion kroner in the same period.

It had been “an extraordinary year for the Lego Group and our colleagues have worked incredibly hard,” said the statement, which added that an unspecified special bonus would be paid to staff in April 2022.

Lego, a contraction of the Danish for “play well” (leg godt), was founded in 1932 by Kirk Kristiansen, whose family still controls the group which employs about 20,400 people in 40 countries.

READ ALSO: Lego profits tower to new heights as stores reopen

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