Danish toy manufacturer Lego (Billund; www.lego.com) has reported a 1% year-on-year increase in operating profit to DKK 4.65 bn (EUR 625m) in the first half of 2016. Sales increased by 10% (in local currency) to DKK 15.7 bn in the period, with growth delivered through established brands including Lego “City” and “Ninjago” as well as the new line “Nexo Knights”. Regionally, sales growth was strong in Europe and Asia with both regions achieving high double-digit growth, while sales development in the Americas was flat year-on-year.

John Goodwin, Lego executive vice president and CFO, said the high growth in Europe, where the company has its most mature markets, was impressive, while growth in Asia resulted from considerable investments in capacity and capabilities. He acknowledged that the company has not provided the initiatives and support needed to keep the same high level of growth in the US, but is now working to regain momentum.

Lines such as Lego “City”, “Creator”, “Technic”, “Ninjago” and “Star Wars” delivered very strong global results during the first six months of the year. Additionally, “Nexo Knights”, which launched at the beginning of the year, has had a successful start, the company said.

The company continued to invest over the year, with a facility in Jiaxing / China beginning production. Construction continues at the site until 2017. Investments have also been made in Monterrey / Mexico, adding moulding, processing and warehousing capacity, and in Nyíregyháza / Hungary, where groundwork for an expansion that may double the capacity started during the first half of 2016.

During the first half of this year, the company continued setting up its Sustainable Materials Centre, announced in 2015 – see Plasteurope.com of 18.06.2015. The centre aims to deliver on the group’s ambition of ensuring that all raw materials used for manufacturing its products, including packaging, are sustainable by 2030. Around 70 of the expected 100 employees who will be working on the project are now engaged and the building to house the centre is being designed.