Lego profit suf­fers from staff growth

The Myanmar Times - - International Business -

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. –

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