Lego sales rise on Asia growth, now 2nd biggest toymaker

Danish toy maker Lego on Thursday reported an 18-percent rise in first-half net profit as revenue grew 13 percent, fuelled by growth in Asia as developed markets stalled.

Lego, now the world's second-biggest toy manufacturer behind Mattel of the US, said its largest markets North America, Europe and Japan had experienced a slow start to the year.

"Despite this tough dynamic, our data indicates that consumer sales of Lego products for the first half of 2013 grew nine percent globally," chief executive Joergen Vig Knudstorp said in a statement.

Revenue of 10.3 billion kroner (1.38 billion euros, $1.83 billion) was also boosted by low stocks of Lego products in many stores due to a strong holiday season last year.

"We needed to restock retailers' shelves with new products, and now stocks are at a more healthy level going into the second half of 2013 providing improved availability for shoppers," Knudstorp said.

Net profit in the first half of the year rose to 2.38 billion kroner from 2.01 billion in the same period a year ago.

The "Legends of Chima" range, launched this year, was already one of Lego's most popular and had contributed strongly to the first half results, the group said.

The themed products come with a game featuring warring animal tribes and have been especially popular in Asia.

"We have recently located our regional headquarter for Asia in Singapore and we will begin construction of our own in-region manufacturing facilities in China next year," chief financial officer John Goodwin said.

The Friends collection, which targets girls and has been accused by feminists of promoting gender stereotyping, also posted "growth rates significantly higher than the company average."

Unlisted Lego, founded in 1934, is based in the western Danish town of Billund and is controlled by the family of Kjeld Kirk Kristiansen, Denmark's richest man.

The company has seen several years of strong growth after a deep crisis in 2003-2004, since when it has expanded its factories outside Denmark in countries including the Czech Republic and Mexico. (AFP)