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How Lego has doubled its profits and is not afraid of the crisis in supply chains

Lego’s profits doubled in the first six months of the year, according to the Danish company’s financial data. The main reason for this is the pandemic, which led to a number of lockdowns in which many people stayed at home to create Lego models of Star Wars and Harry Potter. However, the mass purchase of the constructors continues after the end of the lockdowns.

The Danish company registered record sales. They increased by as much as 43% – to 23 billion Danish kroner (2.6 billion British pounds) in the first six months of 2021 alone. The company’s main profit increased by 140%, reaching 6.3 billion Danish kroner.

Lego with record revenues and profits against the backdrop of the pandemic

In addition to online sales growth, 134 new stores have been opened worldwide


The other good news about Lego is that, unlike most companies around the world, it is not experiencing difficulties due to the crisis caused by delays in supply chains. And while warnings have been issued about reduced toy choices, as well as the risk of higher prices this Christmas due to labor shortages and higher transport costs, this is clearly not the case for the Danish manufacturer.

Lego CEO Nils Christiansen said he did not foresee any problems for his company. Of course, his prediction immediately hit the world news.

“We do not expect any serious problems, but of course, like everyone else, we also depend on transport and customs, especially those in the UK. At the moment, however, we have no particular concerns,” he said.

UK retailers, including John Lewis and The Entertainer, are among the companies that say they are now hiring ships to make sure Christmas supplies arrive on time.

On the Island: Stocking up at Christmas will be scarier than at the start of the pandemic

On the Island: Stocking up at Christmas will be scarier than at the start of the pandemic

This is warned by the largest retail chain on the island


Entertainer has rented 70 containers from China and will have to pay $ 19,000 to transport each. By comparison, the price before the Covid-19 was $ 1,500.

Lego’s CEO did not give specific details as to why the supply crisis did not affect his company so much, and even commented that Lego had no plans to make “extraordinary” price increases to mitigate the impact of higher freight and raw material costs. According to experts, the strong financial results of the company help with all this.

The Danish company is even considering seriously accelerating investment in environmental initiatives. The first constructors made from recycled plastic bottles were recently introduced. Starting next year, paper bags will replace disposable plastic ones.

Lego is also enjoying a successful collaboration with video game company Nintendo. One of the best-selling designers are the kits dedicated to the famous mustachioed plumber Super Mario. Star Wars and Harry Potter, as well as Creator models, are also in great demand.

The Danish company’s sales have increased by more than 10% in all markets around the world, with global growth of 50%. Lego attributes this huge success to a time of global crisis with the wide range of products it has and which is clearly liked by many generations.

Problems in supply chains are becoming more serious

Problems in supply chains are becoming more serious

Even if they manage to produce, it is difficult for companies to find a way to transport their goods



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