More families are building with Lego bricks while they’re stuck at home.
If there was any one sector that benefitted most from people being quarantined at home, it’d be entertainment. Shares in companies that provide entertainment-adjacent services have been on the rise since last March, barring production difficulties caused by the pandemic. One such company is creative toy brand Lego, which has seen its profits soar thanks to more families building at home.
Lego, which is based out of Billund, Denmark, saw its net profits rise by 19% over the past the year, with consumer sales up by about 21% around the world. This has netted them about 43.7 billion Danish krone, or about $6.99 billion USD.
“It is really a result of a tremendous effort by the entire organization, especially with all the things we’ve had to cope with throughout the year,” CEO Niels Christiansen told CNBC.
Indeed, as a direct result of the pandemic, Lego was forced to scale back and close multiple production plants in Mexico and China, as well as close retail locations. Distribution also became more expensive as shipping costs rose proportionately with the danger of the pandemic. Even so, the sheer marketability of Lego sets more than made up the difference, with the recent release of Super Mario and Star Wars-themed sets being particularly profitable.
Sales of Lego sets surged last year as more children stayed home during global pandemic lockdowns – and parents bought the colorful plastic brick toys to keep them entertained during days of isolation. https://t.co/rrnwFKXfJl
— ABC News (@ABC) March 10, 2021
According to Christiansen, while the pandemic definitely affected their dealings, it was not the primary cause of their recent uptick. Rather, he attributes the company’s success to an initiative they ran several years ago to move more of their business dealings to digital platforms, as well as their recent efforts to break into the Chinese market.
“The past year has shown the importance of having an agile, responsive business built on strong digital foundations,” Christiansen said. “I expect that 2021 will see sales increase.”