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LEGO today publishes its interim financial results for the first half of 2019 and the return to growth recorded at the end of 2018 is confirmed with a 4% increase in turnover (including 5% increase in sales) but an operating result which is down 16% compared to the same period in 2018. Net profit is down 12% and LEGO justifies this decline by the numerous investments made during the first half of 2019.
In addition to these figures which confirm that LEGO has found its colors, the manufacturer announces that growth is present in all markets: less than 10% in Western Europe and the United States but continued growth at two figures in China where the establishment of the brand continues to forcefully with the objective of reaching by the end of the current year the number of 140 official stores in 35 cities of the country.
In 2018, LEGO announced that it wanted to strengthen its presence in the Middle East and India to take advantage of the rise of the middle classes in these geographical areas and this desire will result in the establishment of offices in the Indian city of Mumbai from 2020.
In the rest of the world, more than 70 official store openings are announced, including a new one flagship store in Amsterdam (the Netherlands).
Finally, on the side of the successful ranges, we find the usual universes: CITY, Creator, Technic, Ninjago, Friends and obviously Star Wars. LEGO also indicates that the products derived from the Avengers saga have sold particularly well and specifies in passing that the sets based on the movie The LEGO Movie 2 have "contributed to the increase in sales".
If these trends are confirmed, the group's annual results, which will be published in early 2020, should be of the same barrel.
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