Lego builds on success and closes the gap

President and Chief Executive Officer of the LEGO Group, Jorgen Vig Knudstorp

Denmark’s Lego said it expected to keep outperforming rivals after it further narrowed the gap on market leader Mattel last year, aided by strong growth in Asia, a successful movie launch and increased sales of toys targeted at girls.

Lego, owned by the family of company founder Ole Kirk Kristiansen, sees its growth moderately ahead of the global toy market in 2015, driven by innovation and global expansion.

Lego’s revenues grew 13 per cent to 28.6 billion Danish crowns (£2.83bn) while US Barbie-maker Mattel’s sales fell 7 per cent to $6bn, shrinking the gap between the world’s two largest toy makers.

Hasbro, also a US company, increased sales by 4.8 per cent to $4.3bn in 2014.

“The Asia toy markets experienced the strongest regional growth, with both more established markets such as Japan and South Korea and emerging markets such as China experiencing year over year increases,” Lego said.

It said sales grew by more than 10 percent in the United States, Britain, France, Russia and China, with ‘healthy’ single figure growth in central and northern European markets.

Lego’s net profit rose 15 per cent to 7.0 billion crowns in 2014. It said its ‘Friends’ series, widely recognised as targeted at girls, was one of its top selling lines in 2014.