|Legends of China toys propel Lego profits, China plants planned
Danish toy maker Lego reported an 18-percent rise in first-half net profit as revenue grew 13 percent.
Lego said its largest markets North America, Europe and Japan slowed and that it will build plants in China next year.
Despite this, chief executive Joergen Vig Knudstorp said global sales “for the first half of 2013 grew nine percent.’’
Revenue of 10.3 billion kroner (1.38 billion euros) was also boosted by low stocks of Lego products in many stores due to a strong holiday season last year.
Net profit in the first half of the year was 2.38 billion kroner compared with 2.01 billion in the same period a year ago.
The “Legends of Chima’’ range, launched this year, was already one of Lego's most popular and had contributed strongly to the first half results, the group said.
The themed products come with a game featuring warring animal tribes and have been especially popular in Asia.
“We have recently located our regional headquarter for Asia in Singapore and we will begin construction of our own in-region manufacturing facilities in China next year,'' chief financial officer John Goodwin said.
Unlisted Lego, founded in 1934, is based in the western Danish town of Billund and is controlled by the family of Kjeld Kirk Kristiansen, Denmark's richest man.—AFP