LEGO have posted some amazing numbers during the first six months of 2020, appearing to be bulletproof in the face of coronavirus and delivering some incredible figures.
BILLUND, September 2, 2020: The LEGO Group today reported first half earnings for the six months ending June 30, 2020. Revenue for the period grew 7 percent to DKK 15.7 billion compared with the same period in 2019. Consumer sales grew 14 percent compared with 1H 2019 and the brand’s global market share increased. Operating profit was DKK 3.9 billion, an increase of 11 percent compared with 2019.
The LEGO Group CEO, Niels B. Christiansen said: “The strong results are due to our incredible team. When COVID-19 closed stores and offices, our colleagues did everything they could to stay safe and bring play to children and families around the world. I would like to thank them for their extraordinary contribution and their continued fantastic efforts.”
“During the first half, we saw the benefits of our investments in long-term growth initiatives such as e-commerce and product innovation. Our strong portfolio appealed to builders of all ages and our recently upgraded e-commerce platform and agile global supply chain allowed us to fulfil online demand. We also collaborated closely with our retail partners to ensure they could continue to supply their shoppers online.”
The Group delivered double digit consumer sales growth in its major market groups including the Americas, Western Europe, Asia Pacific and China. Operating profit growth was driven by strong sales, offset by bold investments in long-term growth initiatives and higher freight costs associated with shipping products following temporary, government-mandated factory closures in Mexico and China. Underlying net profit grew 13 percent. Adjusted for the impact of foreign exchange on inter- company loans, which has no cash impact, net profit declined 1 percent to DKK 2.6 billion. Free cash flow was strong at DKK 4.1 billion.
