SPIELZEUGinternational 10/2021 Oktober

Toys international
Lego
Strong First Half 2021
Consumer sales, revenue and operating profit grew double digits – Market share gains globally
and in largest markets – Lego brought learning through play to more children around the world
On September 28, 2021, the Lego
Group reported first half earnings
for the six months ending June 30, 2021.
Revenue for the period grew 46 percent to
DKK 23 billion (€3,09 billion) compared
with the same period in 2020. Consumer
sales grew 36 percent, outpacing the
toy industry and driving market share
growth globally and in all major markets.
Operating profit was DKK 8 billion
(€1,08 billion) an increase of 104 percent
compared with 1H 2020, despite an ambitious
programme of strategic investments
to support growth in the long term.
Niels B. Christiansen, CEO of the Lego
Group
The Lego Group CEO, Niels B. Christiansen
said: “We are very pleased with
the progress we made across all areas
of the business during the first half.
Our performance was driven by strong
demand for our portfolio, which has attracted
new builders to the Lego brand.
Our year-on-year growth benefited from
fewer Covid-related restrictions compared
with 2020 as our factories operated
uninterrupted and the majority of
retail stores re-opened. We also saw the
benefits of multi-year investments in e-
commerce, product innovation and a
global supply chain network. Our strong
financial performance now allows us to
accelerate strategic investments in sustainability
and digitalization.”
All market groups grew double digits
All market groups delivered double-digit
consumer sales growth which was driven
by excellent execution and a diverse
portfolio which appealed to builders of
all ages and interests. Top-performing
themes included “Lego City”, “Lego Star
Wars”, “Lego Harry Potter”, “Lego Creator
Expert” and “Lego Technic”.
Operating profit more than doubled
despite significant investments in major
long-term initiatives such as a new retail
store format; e-commerce capabilities; an
enterprise-wide digital transformation;
and efforts to make products and operations
more sustainable. Operating profit
was also offset by increased freight and
raw material costs.
The company made progress against
its ambition to create more sustainable
products. In June it unveiled a prototype
brick made from recycled single-use PET
bottles, an important step in reducing its
reliance on non-renewable raw materials.
It also completed a successful trial of paper
bags designed to replace single-use
plastic in boxes and will begin phasing in
the new paper packaging from early 2022.
This development ensures the Group remains
on track to make all packaging 100
percent sustainable by 2025.
Memorable brand experiences
online & instore
The Lego Group’s investments in its
physical and digital retail channels paid
off in the first half. E-commerce sales
across our own and partners’ platforms
grew 50 percent compared with the same
period last year.
The company also launched a new
retail store format which will be introduced
to around 60 stores during the
second half of 2021. The format was unveiled
at the opening of a new flagship
store in New York City in June and is designed
to create immersive, playful and
memorable brand moments.
The Lego Group continued to expand
its global retail footprint opening more
than 60 new Lego branded stores in the
first half of 2021, more than 40 in China.
This brings the total number of Lego retail
stores as of June 30, to 737, with 291
of those located in China.
During the second half of 2021, the
company will accelerate investments in a
multi-year, enterprise-wide digital transformation.
New digital platforms, products
and ways of working will support
a long-term ambition to digitally-enable
the Lego brand to create fantastic experiences
for children, shoppers, partners
and employees. Digital talent hubs were
opened in Shanghai and Copenhagen in
addition to the company’s headquarters
in Billund and hub in London to support
this effort.
Positive impact on future generations
The company continued to help children
around the world develop via learning
through play. More than 1.2 million
children benefited from product donations
and local community engagement
activities. Year to date, the Lego Group
with the Lego Foundation, which owns
25 percent of the Lego Group, pledged
more than DKK 1.5 billion (€200 million)
in donations to agencies which support
children and families, especially those
in need.
+++ Publication date of our Nov./Dec. issue 2021: 24 th of November 2021 +++
SPIELZEUG international · 10/2021 Oktober
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