by 23% above the corresponding figure for the same period of 2008. Profit before tax for the first six months was DKK 927m compared with DKK 564m for the same period last year.

Continued growth in classic products

Net sales for the first half of the year was DKK 4,374m compared with DKK 3,555m for the first half of 2008.

Classic product lines such as LEGO® City and LEGO Star Wars remain the bestsellers – but there have been improvements in virtually all product lines. The new play theme LEGO Power Miners got off to a very successful start, with sales well ahead of expectations.

The improved sales picture is recorded on almost all markets, with especially the North American and East and Central European markets reporting big increases on first half sales in 2008.

At the same time, the LEGO Group’s direct sales to consumers via its own brand retail stores plus internet and mail order sales increased considerably during the six month period.

Declining market

The total global toy market declined somewhat during the first half of the year. The total figure, however, represents significant regional differences – English speaking markets reported a decline, while most European toy markets grew during the period.

The LEGO Group achieved double digit growth rates in consumer sales on almost all markets. The company’s market share thus increased.

Very satisfactory result

The result before tax for the first six months was DKK 927m compared with DKK 564m for the same period of 2008.

The marked improvement is due partly to higher sales, partly to careful management of costs.

At the end of the first half year the Group’s equity was DKK 1,740m compared with DKK 1,049m at the end of the corresponding period in 2008.

Cash flow from operations was DKK 315m compared with DKK 541m during the first half of 2008.

Jørgen Vig Knudstorp, LEGO Group CEO:

“The first half of 2009 produced a very satisfactory result. It is particularly pleasing to note the continued strong growth in our classic product lines. As the bulk of toy sales occur during the last few months of the year, considerable uncertainty remains about the full year result. But based on the fine results achieved in the first half of the year, we are optimistic with regard to prospects for the remainder of 2009.”

Increased investment in capacity

In the light of recent years’ growth in sales and expectations of sustained growth in the years ahead, the LEGO Group will make a number of investments in 2009 to increase its capacity.

Steps were taken during the first half of the year to expand moulding capacity. New injection moulding machines were installed in Denmark, Hungary and Mexico.

In addition, construction of a new warehouse facility at the Kladno production plant in the Czech Republic began in June this year.

http://www.lego.com/eng/info/default.asp?p...p;archive=false

http://www.cnbc.com/id/32444621

Danish toy maker Lego said Monday that six-month net profit nearly doubled to 927 million kroner ($177 million) on strong sales of its best-selling products.

Last year, Lego Group's profit for the period was 564 million kroner. Revenue from January through June surged 23 percent, to 4.4 billion kroner ($839 million) from 3.6 billion kroner in 2008. The family-owned company does not release quarterly figures.

Lego CEO Joergen Vid Knudstorp said the "very satisfactory" figures gave reason to be "optimistic with regard to prospects for the remainder of 2009."

Lego, whose colored plastic building blocks have been a favorite children's toy for decades, saw sales growth particularly in the United States and eastern Europe, with products like Lego City and Lego Star Wars performing better than expected.

"The total global toy market declined somewhat during the first half of the year," Lego said. "The total figure, however, represents

significant regional differences — English-speaking markets reported a decline, while most European toy markets grew during the period."

Encouraged by its six-month performance, Lego said it had made several investments to increase capacity, including in new injection molding machines in Denmark, Hungary and Mexico. It also began the construction of a warehouse in the Czech Republic in June.

Based in Billund, western Denmark, the Lego Group employs some 4,500 people worldwide. The company is not publicly listed but has published earning reports since 1997.

I have merged your topic over here, since both are of identical discussion.

Thanks.

That's good news for TLC. It seems like people are buying more Lego during the recession.

Makes sence to buy more sets during the recession, you know what you're going to get, you know it's going to last a long time and finally there are far more play posabilities in Lego than most toys. It would seem people are seeking quality over quantity.

It is a common thing that during a recession "retro" (mainly things they had as children) stuff is more popular. It reminds them of a safer time when problems were far away and handled by someone else. Caramel Wagonwheels, Wispa Bars and toys that they played with as children.

Plus parents see a toy that can be played with again and again as more value than a faddish action figure or stocking filler collectable mini toys. Plus the cheaper options are not as available (Best Lock, not that easy to get in the UK) and seen as a health hazard (Mega Brands unfortunate Magnet Re-Call).

I wonder why they publish this information, considering they are not traded on the stock market? Do they have to, according to some other regulations? Or maybe just trying to scare the competition ... :)

I wonder why they publish this information, considering they are not traded on the stock market? Do they have to, according to some other regulations? Or maybe just trying to scare the competition ... :)

Regardless of shares being available in the stock exchange, Lego is a stock corporation. So they have to.

I don't think the recession is the reason their sales have increased. I think it's because the product offering this year has been one of the best ever!

Good products make AFOL's buy more!

I don't think the recession is the reason their sales have increased. I think it's because the product offering this year has been one of the best ever!

Good products make AFOL's buy more!

I agree. The sets we been getting this year been great and helps drive sales even in a recession. As long as the consumer sees value in a product then they will buy it regardless of the price.

Its good to see Lego doing well. Last thing you want is for them to struggle and do silly desperate things to response.

Now I know that all those $$$ I spent this year on Lego has contributed to the bottomline.

To put these news in perspective, 2008 was the best year ever for Lego.

Check my year old post:

TLG half year result 2008

Please remember to buy bricks for christmas too

I agree. The sets we been getting this year been great and helps drive sales even in a recession. As long as the consumer sees value in a product then they will buy it regardless of the price.

Actually, the press release does say that this result has little to do with the 2009 sets and more to do with very strong pre-Xmas sales We will have to wait a little longer to see how the 09 lines have fared in comparison.

Actually, the press release does say that this result has little to do with the 2009 sets and more to do with very strong pre-Xmas sales We will have to wait a little longer to see how the 09 lines have fared in comparison.

In general construction toys do much better during recessions. As posted above, Lego (and Knex) had sizeable boosts in sales in the 2008 Christmas season and the trend is accelerating. TRU and other stores are banking on a large Christmas construction toy binge for 2009, and other systems (Uberstix and Erector{and yes, ugly as they are, Uberstix Do work with everybody's systems}) and new toy systems (TRIO) are popping up like mushrooms in TRU.

Edited August 21, 200915 yr by larry marak

I don't think the recession is the reason their sales have increased. I think it's because the product offering this year has been one of the best ever!

Good products make AFOL's buy more!

I totally agree! I should be increasing my rainy day funds but instead I'm seeing myself buy more Lego than ever.