Investing.com -- The Lego Group reported strong results in the first half of 2024, surpassing the global toy market. Revenue increased by 13% to DKK 31.0 billion, fueled by strong consumer demand, the company said in a statement.
The Danish toy giant’s strong performance in the first half of 2024 was primarily driven by robust sales in Europe and North America. Consumer sales in these regions increased by 14%, significantly outperforming the toy industry.
This growth was fueled by a diverse range of popular themes, including LEGO Icons, LEGO City, LEGO Technic, LEGO Star Wars, and LEGO Harry Potter, which resonated with consumers of all ages and interests.
The Lego Group's strong revenue growth translated into a 26% increase in operating profit to DKK 8.1 billion. Despite increased spending on initiatives, the company's net profit rose 16% to DKK 6.0 billion.
Despite investing DKK 4.5 billion in expanding its global footprint, the company reported a free cash flow of DKK 3.0 billion, an improvement from DKK 1.1 billion in H1 2023.
This was driven by a 60% increase in cash flow from operating activities, which reached DKK 7.5 billion, thanks to strong revenue growth and disciplined financial management.
The Lego Group's results was not only driven by its existing product portfolio but also by its strategic investments in retail expansion and digital innovation.
The company opened 41 new stores, including its largest store in Southeast Asia, located in Jakarta. Additionally, the company relaunched the LEGO Play app, replacing the LEGO Life app, to enhance the digital experience for children and their families.
Looking ahead, Lego plans to further accelerate spending on these initiatives in the second half of the year. By investing in areas that will drive both short-term and long-term growth, the company looks to maintain its position as the industry leader in toys.