Lego vows to go green as the lockdown pushes it to post profits

Lego plans to open 120 new stores this year. (AP photo)

Danish company Lego said today that Lego posted record profits in 2020 as pandemic shutdowns around the world have left people spending their time playing indoors and buying online.

The unlisted family company reported a 19% rise in net profit to 9.9 billion crowns, its biggest ever profit.

Sales jumped 13% to 43.7 billion crowns.

The manufacturer of colored plastic bricks said it has increased its share in the global market even though it was forced to temporarily close its factories in China and Mexico due to the epidemic, which led to higher supply costs.

Sales increased across the board, thanks to the growing online shopping and doubling of visits to its websites, in addition to the opening of 134 stores, including 91 in China as the group intends to expand further.

Despite surging online sales, Lego, headquartered in Billund in western Denmark, plans to open 120 new stores in 2021, including 80 stores in China.

In addition to the classic brick, which remains among its best-selling products, the company has moved aggressively in recent years in areas such as video games, movies, animation, and Legoland theme parks.

Lego – a contraction of the Danish ‘Leg godt’ or ‘Play well’ – especially note the success of Super Mario’s collaboration with Nintendo launched in August, in which players can build realistic versions of 2D Super Mario levels.

After an extensive restructuring in 2017, Lego has shifted its focus to multimedia gaming and sustainability.

While the iconic Lego bricks are nearly unbreakable and reusable for generations, plastic is increasingly being avoided due to the permanent damage its chemical components cause to the planet.

So Lego has pledged that its stones will be 100% sustainable by 2030.

The company also aims to have its plants carbon neutral by 2022, and is gradually phasing out the plastic bags that separate the pieces and replacing them with recycled paper.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button