COPENHAGEN, Denmark – Danish toy company Lego has seen its semi-annual sales rise solidly despite the headwinds posed by the coronavirus pandemic, as it has benefited from long-term investments in e-commerce and product innovations.
He said on Wednesday that total sales increased by 7% to 15.7 billion kronor ($2.5 billion) compared to it was last year, while operating profit increased by 11% to 3.9 billion kronor.Net income, which includes all prospective monetary elements, adding up tax payments, fell.1% to 2.6 billion kronor.
“I am very pleased with the smart outcome despite the coronavirus outbreak,” CEO Niels B. Christiansen told The Associated Press.
Lego, a private company, recorded a double-digit expansion in its customers’ sales in its primary market teams, adding America, Western Europe and Asia.
The accumulation in the operating source of revenue driven by strong sales, offset by investments in long-term expansion projects and higher freight prices related to shipping products as a result of closures of plants imposed by the government by transitority in Mexico and China.
Based in Billund, western Denmark, Lego produces in Mexico for its U.S. markets in China for its Asian market, while production for Europe comes from factories in the Czech Republic and Denmark.
The plant in Mexico closed for about two months through local authorities, so Lego produced its colorful bricks elsewhere and sent them to the North American continent, Christiansen said.
“During the first part of the year, we saw the benefits of our investments in long-term expansion projects such as e-commerce and product innovation,” Christiansen said.”We have also worked intensively with our retail partners so they can continue to source their online shoppers.”
In the most sensible of that, families spent more time in combined confinement.
“There we saw a trend in which the circle of relatives was built more together,” Christiansen said.
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