Lego Group recorded a record revenue and a significant increase in operating profit in the first half of the year, as consumers, especially in the USA and Europe, increasingly turned to the Danish toy manufacturer's building sets despite a sector slump.

Sales increased by 13% to 31 billion Danish kroner (4.65 billion USD). The company attributed this growth to an increasingly diverse portfolio, following the launch of about 300 new sets since January. Bestsellers included Lego Icons, Lego City, and Lego Technic, as well as themed sets like Star Wars and Harry Potter.

The global toy industry has been grappling with sluggish demand for months as consumers, faced with high inflation, are cautious with non-essential spending. According to Circana, a company that tracks consumer goods, the sector shrank by 7% last year. However, construction kits showed a positive trend, defying the negative trend.

Lego CFO Jesper Andersen stated in a conference call that the toy market declined by only 1% in the first half of the year, indicating early signs of recovery following last year's downturn as inflationary pressures ease.

Lego reported that consumer sales increased by 14%, significantly outperforming the toy market. In the USA, however, toy manufacturers Mattel and Hasbro reported declining sales for the first half of the year last month.

Our portfolio remains relevant for all age groups and interests, driving significant demand in all markets," said Lego CEO Niels B. Christiansen. The company's net profit increased by 16% to 6 billion kroner, while operating profit rose by 26% to 8.1 billion kroner, more than double that of 2020.

The company invested 4.5 billion kroner in the construction of new factories and the expansion of facilities and offices. Lego opened a new European distribution center in Belgium, while the construction of new factories in Vietnam and Virginia is progressing. These facilities are expected to be operational in 2025 and 2027, respectively.

Simultaneously, the capacity at existing plants in Mexico, Hungary, and China has been further expanded. Since January, Lego has also opened 41 new stores and plans to accelerate spending on retail, digitalization, and sustainability in the second half of the year.

For the full year, Lego expects single-digit sales growth that exceeds the global toy market, while net profit is likely to decline slightly due to higher expenses.