Improved sales in licence-based products helped toy manufacturer Lego (Billund / Denmark; www.lego.com) to continue to increase its earnings in 2011, with operating profit reaching DKK 5.67 bn (EUR 762m), compared with DKK 4.97 bn in 2010, on sales up 17% year-on-year at DKK 18.7 bn (EUR 558m). For the eighth year in succession the company increased its share in a sluggish toy market and it now accounts for 7.1% of the global market.

Lego said that sales of licence-based product lines in particular were well above expectations during the year, including products based on “Star Wars”, “Harry Potter” and “Pirates of the Caribbean”. Sales of classic lines such as Lego “City”, “Technic” and “Creator” also rose sharply, while Lego “Ninjago”, the group’s major product launch in 2011, exceeded expectations and was the company’s biggest product introduction ever. However, Lego “Universe” – the online game launched in late 2010 – fell below expectations, and in November 2011 the decision was made to halt its development.

In February 2012, Lego’s parent company Kirkbi announced an investment in a new offshore wind farm in Germany which is expected to enable the company to meet its energy targets for 2020. The company’s aim is to meet 50% of its energy needs from renewable sources by 2015, rising to 100% by 2020. The wind farm is expected to come on stream in 2014.

In 2011, Lego continued to invest in production capacity to meet increased demand. In the autumn, new moulding halls were opened at its factory in Monterrey / Mexico, where a new high bay warehouse is under construction. In March 2011 work began on a major extension to the facility in Kladno / Czech Republic, which is expected to open in spring 2012 – see Plasteurope.com of 13.04.2011 – and the company is also building a new plant in Nyíregyháza / Hungary, to replace the existing rented facility in the city – see Plasteurope.com of 19.09.2011. In 2011 full time employee numbers increased to an average of 9,374, an increase of 1,009 over the previous year.

"It is a highly satisfactory result reflecting a solid growth in profit. Growth in the North American market continued undiminished, and also in most European and Asian markets we were able to report double digit increases in sales,” said Jørgen Vig Knudstorp, Lego Group CEO. Global Lego sales are expected to continue growing, producing a satisfactory result for 2012. One of the drivers is the new play theme, Lego “Friends”, which along with the existing product range should secure continued sales growth in 2012, Lego said. The company expects a flat or slightly declining development in the overall European toy market in 2012 – while modest increases are expected in the overall market for traditional toys elsewhere in the world.