Lego builds its market share as sales soar

Marion Dakers
LEGO yesterday proved that old-fashioned toys can beat computer games, as the Danish toymaker posted a surge in annual sales and picked up global market share.

The firm’s net profit for 2012 rose 35 per cent to 5.6bn krone (£650.6m), on revenues 25 per cent higher at 23.4bn krone.

The Lego Friends range, which was launched at the start of 2012 and aimed at girls, has performed “considerably above expectations”, the company said. Most regions produced double-digit growth in the year, and direct web sales now make up 10 per cent of overall turnover.

Lego said its share of the global toy industry has risen from 7.1 per cent in 2011 to 8.6 per cent in 2012, and it expects to maintain momentum in spite of the growing popularity of more high-tech gadgets.

“The very positive results are first and foremost related to the continued successful innovation of the product portfolio,” the board said in Lego’s annual report.

New launches account for 60 per cent of Lego’s sales, and the firm has 160 designers in Denmark working on product development.

The firm said it does not expect to match its stellar performance in 2013 due to the uncertain economy, though it sees “considerable” medium-term sales growth.