Lego first-half net profit rises 32% to 8.6 billion kroner on broad demand

First-half financial performance

Danish toymaker Lego reported a 32% rise in net profit for the first six months of 2026, reaching 8.6 billion Danish kroner (approximately 1.15 billion euros). Total revenue for the six-month period expanded to 41.9 billion kroner (5.6 billion euros), an increase of 26% at constant exchange rates. In the first half of 2025, revenue was 34.6 billion kroner. Consumer retail sales across international operations grew by 22% during the same timeframe. The family-owned enterprise, headquartered in Billund in western Denmark, built on its 2025 performance when full-year profit had climbed 21% to approximately 2.2 billion euros. According to executive leadership, results exceeded internal forecasts across every business segment rather than relying on a single product line or region.

Managing raw material costs

The company absorbed higher crude oil prices without passing the increased manufacturing expenditure on to consumer retail prices. Crude oil serves as an essential component in the manufacturing of traditional plastic bricks. Chief executive Niels Christiansen attributed the stability in toy pricing to higher factory throughput and operational productivity gains derived from rapid sales growth across all divisions. Lego also expanded the volume of renewable and recycled materials integrated into its manufacturing lines during the semester without shifting costs to buyers.

We can manage them; they do not compromise profitability... our growth helps us. Because when you grow faster, you have opportunities to make better use of factories, to be more productive.

Regional trends and Chinese demand

While sales expanded across most international territories, consumer demand in China remained constrained throughout the semester. Household spending in the country remained subdued, creating an unyielding operating environment for the toymaker. Christiansen observed that Chinese consumers showed hesitation in discretionary retail purchases during the first six months of the year.

The Chinese market is simply very difficult, consumers are a bit reluctant to spend.

Despite these localized headwinds in East Asia, the company continues to distribute its catalog through 1,106 branded stores situated across 54 global markets, supported by international digital sales platforms.

Product launches and catalog expansion

Lego maintained commercial momentum across both child and adult demographics by introducing 332 new products into its catalog during the period. The range combines proprietary product lines such as Lego Technic and Botanicals with licensed commercial partnerships spanning Harry Potter, Formula 1, and the World Cup. The group also commercialized its Lego Smart Brick, an interactive connected component developed over seven years with 20 patents to animate physical assemblies. The company, whose name derives from the Danish phrase "Leg godt" (play well), projects full-year 2026 growth to remain in the double digits.