Danish toy icon Lego builds record profit through Covid pandemic

The world's largest toymaker, Denmark's Lego, on Tuesday reported record sales and profits in 2021 as demand for its signature plastic bricks soared during the pandemic.

A file photo of Lego blocks
A file photo of Lego blocks. The Danish toy company posted record profits after demand surged during the Covid-19 pandemic. Photo: Mads Claus Rasmussen/Ritzau Scanpix

The group registered a 34-percent increase in net profit to 13.3 billion kroner (1.78 billion euros), its biggest to date.

Sales meanwhile jumped by 27 percent to 55.3 billion kroner, boosted by the success of its franchise deals in recent years, including Star Wars and Harry Potter, as well as its strong expansion in China.

Online shopping helped sales grow worldwide despite the pandemic. Lego also opened 165 new stores in 2021, including 90 in China, where it plans to expand further.

For 2022, the group said it expected its growth to “normalise”, and be in the single digits.

Its strong performance in recent years has helped Lego become the world’s biggest toymaker, according to analysts.

The Danish group now has 832 stores and five factories worldwide.

Last year, it announced the opening of an additional site in Vietnam, near Ho Chi Minh City.

The site, designed to support long-term growth in the Asia-Pacific region, is to be Lego’s first carbon-neutral factory as the group aims to reduce its emissions.

Lego, a contraction of the Danish for “play well” (leg godt), was founded in 1932 by Kirk Kristiansen, whose family still controls the group which employs about 20,400 people in 40 countries.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


SAS strike affected 380,000 passengers in July

More than 3,700 flights where cancelled and 380,000 passengers where affected by the 15-day strike which hit Scandinavia's SAS airline last month, the company has revealed.

SAS strike affected 380,000 passengers in July

“We sincerely apologize to our customers who were affected by the July strike,” Anko van der Werff, the company’s chief executive, said in a press release. “We are happy operations returned to normality again allowing us to start regaining our customers’ trust.”

According to the release, 1.3 million passengers travelled with the airline in July, which was still a 23 percent increase on the same month last year, when Covid-19 restrictions were still reducing tourism levels.

“In comparison with last month, the total number of passengers decreased with 32 percent and capacity was decreased by 23 percent, which was a result from the 15-day pilot strike,” the release read. 

Pilot unions in Sweden, Denmark and Norway, went on strike for 15 days last month over pay, conditions, and the company’s refusal to rehire pilots laid off during the Covid-19 pandemic on the same terms as before. 

The strike, which cost the airline between €9m and €12m a day, was ended on July 19th, after which it took several days to get flights back to normal

Van der Werff said company said it would now continue putting in place its restructuring plan, SAS FORWARD, and push ahead with restructuring in the US, where the company has filed for Chapter 11. 

He said these would both “accelerate the transformation process that will lead to a financially stable airline, that will be able to deliver the service our customers are expecting”.