Lego sales rise but investments dent profits
COPENHAGEN, Denmark (AP) — Toy maker Lego says its revenue rose 4% in the first half of 2019 but significant investments to create long-term growth led to a 12% drop in net profit.
The privately-held company reported Wednesday first-half revenue of 14.8 billion kroner ($2.2 billion), while net profit dropped to 2.7 billion kroner ($400 million).
CEO Niels B. Christiansen said that the group was “satisfied with our performance given the transformative shifts which continue to reshape the global toy industry.”
Christiansen said that the investments were mean to grow, open new markets in China and India and develop online sales platforms, among other things.
The group, which is based in Billund, Denmark, doesn’t release quarterly figures.