Lego pieces together big investment as it can't keep up with demand

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The most popular toy company in the world has admitted it's finding it difficult to keep up with demand.

Lego has forced its sales to slow down, with 10% growth for the first half of the year compared to 15% per year over the last 12 years. Its net profit fell by nearly 2% to 3.5 billion Danish krone, or around €404 million.

The European and Asian markets saw growth for Lego, but it remained flat in the Americas.

Meteoric growth over the last few years have put huge strains on Lego's manufacturing capabilities, leading the Danish company to cut some marketing and invest in manufacturing centres in Mexico, China, Hungary, and its native Denmark.

It has also hired 3,500 new employees, bringing its global workforce to 18,500.

Lego's chief financial officer John Goodwin has said that the manufacturing investment is part of Lego's "long-term plan to sustain the development and delivery of fun".

Lego's incredible growth appears even more incredible when you realise the company was nearly bankrupt in the early 2000s. A series of movie tie-ins and partnerships with other successful brands have made Lego the biggest toy brand in the world ahead of Mattel.

Kevin Kelly, Newstalk.com 

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