LEGO®

The LEGO Group’s net sales for the first half of 2010 were 34% higher than for the same period last year. The result before tax was DKK 1,559m compared with DKK 927m for the first half of 2009.

Double digit growth in all markets
Net sales for the first half of 2010 were DKK 5,863m compared with DKK 4,374m in the first half of 2009.

Classic product lines such as LEGO® City, LEGO® DUPLO®, LEGO Star WarsTM, LEGO Creator and LEGO Technic maintained their vigorous growth rate. LEGO Games, the company’s range of board games introduced last year in the UK and in German speaking countries, is being launched across the rest of the world this year and enjoys a positive reception. Similarly LEGO Atlantis, the new play theme, has generated higher sales than expected. Finally, the new license based products of LEGO brand Toy Story and Prince of Persia were launched during the period and have been extremely well received by consumers.

All LEGO Group markets recorded double digit growth rates in their sales during the first six months of 2010 – with particularly high growth rates in focus markets USA and Eastern Europe.

Moderate increase in global market
The global market for traditional toys grew by approx. 2% during the first six months of 2010. The LEGO Group achieved double digit growth rates in consumer sales in almost all markets. The company’s market share increased correspondingly and is now approx. 5% of the global market.

Satisfactory results
The result before tax was DKK 1,559m compared with DKK 927m for the first half of 2009. This significant improvement was due first and foremost to the substantial growth in sales – plus the fact that costs remain strictly under control.

At the end of the first half year the Group’s equity was DKK 2,703m compared with DKK 1,740m at the end of the corresponding period in 2009.
Cash flow from operations was DKK 959m compared with DKK 315m during the first half of 2009.

The LEGO Group’s non financial performance also remains noteworthy. For example, during the first half of 2010 there was a positive trend in workplace environment parameters – including a reduction in sick leave and the workplace injury rate. This brings the LEGO Group closer to its ambitious targets for this area.

CEO Jørgen Vig Knudstorp says of the results:

“The results for the first half of 2010 are very satisfactory in both financial and non financial terms, and we are pleased to note that all our markets can report strong growth. We are moving into our peak season – the bulk of toy sales take place during the second half of the year – when our market releases will include a number of brand new LEGO Harry Potter products. Furthermore, in October we will have our new, major digital product launch: LEGO Universe which is an online game where an infinite number of children can play and build together across borders. It is too early to indicate a likely result for the year as a whole but based on results for the year so far we have every reason to have very positive expectations.”