The LEGO Group builds China expansion brick by brick

The Lego Group, the global toy maker, will continue to accelerate its expansion in China in brick-and-mortar stores and online, as its consumer sales globally outperformed the global toy market in the first half year, an executive said.

According to the group's fiscal report for the first six months of 2023, its revenue reached DKK 27.4 billion ($4 billion), a growth of one percent compared with the same period in 2022.

Consumer sales, boosted by continued demand and strong retailer confidence, grew three percent, outperforming a declining toy market and contributing to strong market share growth.

Operating profit was in line with expectations at DKK 6.4 billion compared with DKK 7.9 billion in the first half of 2022. Net profit was DKK 5.1 billion compared with DKK 6.2 billion in the same period a year ago.

The company continued to accelerate spending in long-term strategic initiatives including manufacturing, digital and sustainability.

The Lego Group will continue to expand its retail footprint and online presence in China in 2023 and beyond to reach more children, its China executive said.

"We regard China as a strategic growth market. We have confidence in the prospects of the Chinese market, and we will continue to invest in China," Paul Huang, senior vice-president of the LEGO Group and general manager of LEGO China, said earlier this month at the opening of a major store in Changsha, Hunan province.

The group will deliver more "diversified, memorable and immersive" retail experiences for Chinese children and families, Huang said.

The company now has over 460 flagship and certified stores across 120 cities in China.

This year the group has plans to roll out more than 750 products, of which around half are new.