Financial results stabilised in 2018 / Toy trends bucked by winning shares in key markets / Expansion in China and the Middle East

“Harry Potter” and the “Star Wars” themes helped Lego (Billund / Denmark; stabilise its financial results in 2018 as it gained market shares and boosted sales in key markets, particularly in China. Lego’s revenues dropped in 2017 for the first time since 2013 amidst a difficult retail landscape that includes Toys“R”Us, a major customer of toymakers, going bankrupt – see of 08.03.2018.

Operating profit in 2018 rose 4% to DKK 10.8 bn (EUR 1.45 bn). Net profit was DKK 8.1 bn, an increase of 3.5%. Consumer sales added 3% while revenues rose 4% to DKK 36.4 bn. Excluding currency changes, revenues were even higher, at 7%. “We set out with one aim in 2018, to stabilise the business,” said CEO Niels Christiansen. He said Lego widened market share in its largest markets, deviating from industry trends.

Lego’s top themes last year were “City”, “Technic”, “Star Wars”, “Friends” and “Ninjago”. Its set on “Harry Potter”, “Jurassic World”, “Classic” and “Creator” also performed strongly. New products which combined bricks with the digital world, such as programming a Lego robotic set to move and the augmented reality app, also contributed to boosting sales.

While the traditional markets, such as the US and Western Europe, improved in low-single digits, revenue in China grew “strong double-digits” as the brand expanded into new cities and built its presence on e-commerce, digital and physical platforms. Lego will accelerate its expansion in China by opening 80 stores in 18 cities in 2019. It recently opened a new flagship store in Beijing – see of 12.09.2018. The toymaker will also further build up its presence in the Middle East. It will open new markets where there is a large and growing middle-class population, such as India – see of 27.02.2019.
06.03.2019 [241903-0]
Published on 06.03.2019
Lego: Spielwarenhersteller wieder auf WachstumskursGerman version of this article...

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