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.

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Copenhagen Airport returns good result but sees dark clouds ahead

Increasing travel activity gave Copenhagen Airport a pre-tax profit of 234 million kroner in the third quarter of 2022.11.08

Copenhagen Airport returns good result but sees dark clouds ahead

The Q3 profit represents the first time since 2019 that the airport has made a profit in the third quarter and shows that the company is emerging from a major crisis first brought about by the Covid-19 pandemic, CEO Thomas Woldbye said in a statement.

“Even though energy crisis, war, inflation and the risk of Covid-19 variants is still creating uncertainty, our expectation is that the annual results will be a plus of around 125-225 million kroner,” Woldbye said in the statement.

The airport made a profit of 221 million kroner in the first nine months of this year before tax, lower than the result for Q3 alone.

“So it seems to be looking bright for air travel despite many dark clouds on the horizon. It’s going better but we are certainly not where we want to be yet,” Woldbye said.

Recent years have seen the Covid-19 pandemic in particular cause setbacks for the airport holding company.

The company – Københavns Lufthavne – made a loss of 1.5 billion kroner through 2020 and 2021 and borrowed 2.2 billion kroner to continue operations and make necessary investments, it said.