Sep 7, 2016

LEGO expands to beat supply-chain bottlenecks

LEGO has said it could have built bigger sales in the first half of this year but for bottlenecks in its supply-chain


The Danish toymaker is blaming a lack of production capacity for a decline in revenue growth and profits.
Net profit was down two percent at 3.49 billion Danish krone (468 million euros) while revenue grow 11 percent in the six months to 15.69 billion Danish krone (2.10 billion euros). Sales in Asia and Europe, which is its most mature market, grew by more than 10 percent. But the company said that last year it could not keep up with demand in North America – the world's biggest toy market – so reduced its promotional activities there, which led to the slowdown this year.

That has prompted a big investment plan, with the workforce already increased by 3,500 this year, a rise of 24 percent.