Do you know those small, many-colored plastic blocks that when stepped on, cause immense pain? Well, those curse-inducing blocks have built quite the empire: Lego is now officially the world’s largest toymaker.
On Wednesday, the privately-owned Danish company announced a stellar profit in the first half of 2015, which increased 30% from the year ago period on sales that rose 22%, sitting at $2.13 billion from $1.75 billion. Lego also raised its outlook for the year.
"The results underscore the global relevance and appeal of the Lego portfolio," John Goodwin, chief financial officer, told the Financial Times.
CEO Joergen Vig Knudstorp described the result as “highly satisfactory.”
This gain has helped Lego surpass both Mattel Inc (MAT - Free Report) , maker of Barbie and Hot Wheels, and Hasbro Inc (HAS - Free Report) , who makes Transformers and G.I. Joe. Mattel saw their own sales slip to $1.9 billion in the six months ended June 30 from $2 billion last year.
Lego’s impressive profit seems to be the result of smart business ventures. The company recently announced a $150 million investment to improve its core toy materials, which are currently based in petrochemicals. Lego knows where it’s successful, too: their one product sets, which range from The Simpsons to Jurrassic Park to Star Wars, as well as original creations Ninjago and Elves, have helped the company boost its overall sales. And in order to combat kids’ inclination to play games digitally, Lego has launched a slew of video games, like the successful Lego Dimensions, and their popular feature film The Lego Movie, which was the most successful animated feature in 2014; the movie grossed $257.8 million in the U.S. and $468.8 million worldwide.
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