Lego outgrows Hasbro, Mattel as sales jump

Copenhagen Lego, Europe's biggest toymaker, boosted profit and market share last year to outgrow its main competitors, helped by sales of building-block sets based on Star Wars and Harry Potter themes.

Net income jumped 12 per cent to a record 4.16 billion crowns (Dh2.7 billion) in 2011, the Billund, Denmark-based company said yesterday in a statement. Revenue rose 17 per cent to 18.7 billion crowns.

Lego grew faster than Mattel and Hasbro, the world's largest toymakers, which both reported 7 per cent growth in 2011 sales. The Danish company said yesterday it boosted its global market share to 7.1 per cent from 5.9 per cent in 2010 and that it expects sales to increase this year.

"Growth in the North American market continued undiminished, and also in most European and Asian markets we were able to report double-digit increases in sales," Chief Executive Officer Joergen Vig Knudstorp said in the statement. "Sales of licence-based product lines in particular were well above expectations in 2011."

Lego has bought licences from moviemakers including Lucasfilm and Walt Disney to base building-block sets on film characters. Sales of Pirates of the Caribbean sets also exceeded the company's forecasts.

Lego said the European toy market will be "flat or slightly declining" in 2012 because of the debt crisis, and that there will be "modest" growth in the rest of the world.