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Media

Lego profits fall in tough toy market

“Demand for our products saw us outpace the industry and significantly grow market share”

Lego saw profits fall in its latest half-year by almost a fifth as trading normalised after a boom during the pandemic.

Interim revenues to end June 2023 rose 1% to 27.4 billion Danish krone (DKK) (£3.2 billion) but after what the plastic brick maker described as investing for its future, profits fell 19% to DKK6.4 billion.

Niels B Christiansen, chief executive, said he was satisfied with the performance given the exceptional three years previously and a challenging six months for the toy industry overall.

“Demand for our products saw us outpace the industry and significantly grow market share,” he said.

American sales grew, the Danish company added, though consumer sales in China were impacted by a slower-than-predicted return to pre-pandemic shopping habits.

China will see more expansion, both online and through stores, this year to reach more children, the statement said.

The top performing themes were a mix of homegrown IPs and external IPs and included: LEGO Icons, LEGO Star Wars, LEGO Technic and LEGO City.

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