Danish toy manufacturer Lego (Billund; www.lego.com) reported a 10% rise in full year operating profits and sales, boosted by strong demand for new product lines. The company, which makes colourful plastic construction bricks, said sales increased in all major markets, despite a slight decline in the global toy market in 2013. The large US, UK and central and northern European markets had “healthy single digit growth rates”, while there was double digit sales growth in most other markets. In Asia, which is still a relatively small market for Lego, sales growth was very strong, it added.

Lego’s 2013 operating profits reached DKK 8.34 bn (EUR 1.12 bn) on sales of DKK 25.38 bn (EUR 3.4 bn), while net profits increased by 9% to DKK 6.12 bn (EUR 820m). The company highlighted the successful launch of its “Legends of Chima” products, the continued success of its “Friends” line and a strong performance from favourite lines such as “City” and “Duplo”.

“Continually developing and innovating our consumer offering is a key to our success, and in 2013 we successfully developed and launched products that children put high on their wish list all over the world,” said CEO Jørgen Vig Knudstorp. Lego expects the global toy market to grow by low single digits annually in the future, and believes the company can outgrow the global market and gain market share, he added. The company has just launched a hit feature film, “The Lego Movie”, which is expected to help lift sales this year.

Lego invested more than DKK 2.64 bn (EUR 330m) in 2013, compared with DKK 1.73 bn (EUR 230m) in 2012. It expanded factories in Mexico and the Czech Republic, and has nearly completed construction of a new facility in Hungary. The company said work has also begun on a new factory in Jiaxing / China, which will supply the growing Asian market when it opens in 2016 – see Plasteurope.com of 21.03.2013.