Licensed IP helps company to deliver top line growth in the first half of 2019.
The LEGO Group has reported top line growth for the first half of 2019, with licensed lines including Star Wars and Marvel Avengers contributing.
Global consumer sales grew 5% compared to the same period in 2018, while revenue for the first half grew 4% to DKK14.8 billion. In constant currency, revenue grew 2% compared with the same period in 2018.
However, operating profit declined 16% to DKK3.5 billion, while net profit of DKK2.7 billion was a drop of 12% (driven by significant investments in long-term growth).
Consumer sales in established markets such as the Americas and Western Europe grew in single digits. China – a strategic growth market for the LEGO Group – continued its strong double-digit growth in consumer sales.
Top selling themes during the first half of the year were a mix of homegrown and partner IP. LEGO Marvel Avengers sets (pictured) performed especially strongly, while LEGO Movie 2 and LEGO Star Wars products also contributed to consumer sales growth.
The LEGO Group is stepping up investments to expand its global physical and digital footprint in order to reach more children around the world. The Group will continue to invest in China and is on track to have more than 140 stores in 35 cities by the end of 2019.
It will also open an office in Mumbai in early 2020 from where the Group will expand its presence in India.
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