SHARE
COPY LINK

LEGO

Danish toy icon Lego builds record profit through Covid pandemic

The world's largest toymaker, Denmark's Lego, on Tuesday reported record sales and profits in 2021 as demand for its signature plastic bricks soared during the pandemic.

A file photo of Lego blocks
A file photo of Lego blocks. The Danish toy company posted record profits after demand surged during the Covid-19 pandemic. Photo: Mads Claus Rasmussen/Ritzau Scanpix

The group registered a 34-percent increase in net profit to 13.3 billion kroner (1.78 billion euros), its biggest to date.

Sales meanwhile jumped by 27 percent to 55.3 billion kroner, boosted by the success of its franchise deals in recent years, including Star Wars and Harry Potter, as well as its strong expansion in China.

Online shopping helped sales grow worldwide despite the pandemic. Lego also opened 165 new stores in 2021, including 90 in China, where it plans to expand further.

For 2022, the group said it expected its growth to “normalise”, and be in the single digits.

Its strong performance in recent years has helped Lego become the world’s biggest toymaker, according to analysts.

The Danish group now has 832 stores and five factories worldwide.

Last year, it announced the opening of an additional site in Vietnam, near Ho Chi Minh City.

The site, designed to support long-term growth in the Asia-Pacific region, is to be Lego’s first carbon-neutral factory as the group aims to reduce its emissions.

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.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

BUSINESS

Maersk profits plummet as Yemeni attacks close off Red Sea route

Danish shipping giant Maersk posted a huge drop in net profit for the first quarter on Thursday as Yemeni rebel attacks are forcing it to avoid the vital Red Sea route.

Maersk profits plummet as Yemeni attacks close off Red Sea route

Maersk reported a net profit of $177 million in the first three months of the year, a 13-fold drop from the same period last year. Turnover fell 13 percent to $12.4 billion, slightly lower than forecast by analysts surveyed by financial data firm FactSet.

The company, however, raised its outlook for the full year, citing higher demand and increased rates and costs due to the supply chain disruptions in the Red Sea.

It now expects an underlying core profit ranging between $4 billion and $6 billion, up from $1 billion-$6 billion previously.

“We had a positive start to the year with a first quarter developing precisely as we expected,” Maersk chief executive Vincent Clerc said in a statement.

“Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched,” he said.

“This not only supported a recovery in the first quarter compared to the previous quarter, but also provide an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year.”

Iran-backed Huthi rebels, who control the Yemeni capital Sanaa and much of the country’s Red Sea coast, have launched dozens of attacks on ships since November, claiming solidarity with Palestinians caught up in the Israel-Hamas war.

The United States in December announced a maritime security initiative to protect Red Sea shipping from the attacks, which have forced commercial vessels to divert from the route that normally carries 12 percent of global trade.

SHOW COMMENTS