Harry Potter and Star Wars drives Lego sales back to profit

Toy-maker Lego returned to profit growth last year driven by higher sales of Star Wars and Harry Potter-themed products.

Harry Potter and Star Wars drives Lego sales back to profit

Toy-maker Lego returned to profit growth last year driven by higher sales of Star Wars and Harry Potter-themed products.

The firm reported a 3% increase in pre-tax profits to 10.5 bn Danish kroner (€1.41 bn) for 2018 and a 3% rise in net profit to 8.1 bn kr (€1.09m).

Sales stabilised last year and grew 4% to 36.4 bn kroner (ported a 3% increase in pre-tax profits to 10.5 bn Danish kroner (€1.41 bn) for 2018 and a 3% rise in net profit to 8.1 bn kr (€4.88 bn) after falling in 2017.

Traditional toy companies have struggled with the rise of digital gadgets and saw supply chains disrupted when specialist retailer Toy R Us collapsed into administration last year.

However, Lego has bucked the trend after revenue was boosted by strong double-digit growth in China as the company expanded its offering in the country.

Star Wars, Harry Potter, Jurassic World and Ninjago were among Lego's top selling building set themes in 2018.

Lego expects revenue to grow by single digits in 2019 as the group focuses on developing products and expanding in established and emerging markets such as China.

The company said it also "plans to continue investing in initiatives to drive longer-term sustainable growth".

Chief executive Niels Christiansen said: "2018 was a defining year for the toy industry. Disruption in retail channels and increasing digitalisation reshaped the landscape and set a course of unprecedented change.

"However, I am pleased to report that even in the face of these external challenges, the Lego Group stabilised its business during 2018 and achieved modest top and bottom-line growth.

"Digitalisation is changing almost every aspect of our daily lives, and we are embracing these opportunities. While physical play remains our core, we will continue to invest in innovative, fun and safe ways to integrate the brick with the myriad possibilities of digital play."

-Press Association

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited