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Lego Group records double-digit growth, plans 80 new stores

By WANG ZHUOQIONG | chinadaily.com.cn | Updated: 2021-03-10 21:57
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Lego opens the country's fourth flagship store in Hangzhou in June. [Photo provided to chinadaily.com.cn]

World-leading toy maker the Lego group is striving to open 80 new physical stores while strengthening its e-commerce capacities in China, as it recorded double-digit growth of revenue and operating profit.

Strong consumer demand resulting from more staying-at-home consumers has boosted revenue, operating profit and market shares for the Billund, Denmark-based company, according to its full year 2020 report, which was released on Wednesday.

Its revenue for the year grew 13 percent compared to that of 2019, to DKK 43.7 billion ($6.99 billion), consumer sales grew 21 percent over the same period.

Operating profit was DKK 12.9 billion, an increase of 19 percent compared with 2019. The brand's global market share grew.

Consumer sales in all market groups grew in the double digits, with especially strong growth in China, the American markets, Western Europe and other markets in Asia Pacific.

Growth in operating profit was driven by strong sales and offset by strategic investments and increased distribution costs associated with shipping products globally following the temporary, enforced closure of manufacturing sites in Mexico and China, the company said.

Net profit grew 19 percent to DKK 9.9 billion, while free cash flow was strong at DKK 11.5 billion.

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