Lego profit suffers from staff growth
DANISH toy maker Lego reported slower sales growth and falling profits in the first half as it hired more staff and sales stalled in the US.
Net profit fell to 3.49 billion kroner (US$524 million), from 3.55 billion kroner previously.
Revenue growth was still at 11 percent to 15.69 billion kroner, but it increased at less than half the pace it did a year ago.
Earnings took a hit as the group grew its workforce by 3500 employees – meaning it now has 18,500 staff – and invested in a new factory in China and also expanded existing plants in Mexico and Hungary.
Sales grew by double digits in the European and Asian markets but were flat in the Americas.
In the first half of the year, the company was the world’s largest toy maker as its revenue surpassed US rivals Mattel and Hasbro. –