LEGO reports record profits
It wasn't long ago (actually, 9 years ago) that the LEGO company was in dire straits and there were fears that it might be snapped up by a competitor like Hasbro or Mattel. However, an article in Bloomberg earlier in the week reports that LEGO has taken the top spot as the most valuable toy company in the world and is now worth more than Mattel. I'll let you read the report and watch the video for yourself, but the headlines are:
- Revenues were up by 25% last year, and have tripled since 2007.
- Earnings of $1bn were made on $4bn of sales last year.
- The company is now valued at $14.6bn, marginally more than Mattel.
- The three children of Kjeld Kirk Kristiansen, who is Denmark's richest man, are now billionaires.
That's quite a turnaround from the company's 'dark ages' in the early 2000s when its bank stopped lending it money because of the losses it was making. The road to recovery is well documented, but I believe we have Jorgen Vig Knudstorp, who took over as CEO in 2004, to thank for the impressive turnaround and I think the company is in safe hands.
Now, if only they'd reduce the prices a bit...