Danish toy manufacturer Lego (Billund; www.lego.com) has reported an 11% year-on-year increase in operating profit to DKK 3.20 bn (EUR 429m) in the first half of 2013, driven by strong growth in Asia and successful new products. Sales increased by 13% to DKK 10.4 bn, with healthy revenue increases, particularly in Asia, supported by product lines including “Legends of Chima” and Lego “Friends”. The company said it had increased its share of the global toy market in the period to around 8.8 %, up from 8.6% at the end of 2012.

Lego's CEO, Jørgen Vig Knudstorp, said: “It is a very satisfactory result in view of general developments in the world toy market which has had a slow start to the year in the largest and most mature markets of North America, Europe and Japan. Despite this tough dynamic, our data indicates that consumer sales of Lego products for the first half of 2013 grew 9% globally versus the same period a year ago. In addition, our sales in the first half of 2013 have been increased by the fact that inventory of Lego products at retailers was very low going into the first quarter due to a successful end of year in 2012.”

The company’s most significant product launch in 2013, “Legends of Chima”, has contributed strongly to the interim result, performing well in its launch phase and already one of Lego’s largest product themes. The product has performed particularly well in Asia, where it has been a large contributor to the high growth in the region. Lego “Friends”, launched in 2012 and targeted towards girls, is also experiencing a strong second year, with growth rates significantly higher than the company average.

Lego experienced broad-based growth across all regions and all major markets during the first half year of 2013, with revenue gains varying from region to region. Sales to consumers rose by 8% year-on-year in European markets and by 4% in North and Latin America. The strongest performance was experienced in Asia with growth in consumer sales of over 35% for the first half of 2013.

John Goodwin, Lego CFO, said: “We are very satisfied with the growth we see in Asia, as it supports our long-term ambition to make the region a larger contributor in the future. We have recently located our regional headquarters for Asia in Singapore and we will begin construction of our own in-region manufacturing facilities in China next year to further develop Asia as an engine for future growth.” – see also Plasteurope.com of 21.03.2013.