Lego has reported record sales of £4 billion as the Danish toymaker capitalizes on parents' concerns about children's smartphone usage. Sales soared by 12%, driven by the popularity of its Botanicals and Formula One grand prix-themed sets. The company's sales reached 34.6 billion Danish kroner in the first half of the year, outperforming the recovering global toy market, which saw an increase of 7%. CEO Niels B Christiansen noted that Lego's growth could stem from parents wanting to limit social media exposure for their children due to its impact on mental health.
Alongside Lego's success, Yoto, a UK-based company known for its screen-free speakers for children, nearly doubled its sales to £94.8 million last year. Christiansen commented on Lego's competition for children's attention, emphasizing the importance of providing exciting experiences that divert them from smartphones. The company is working on digital games and collaborating with trendy brands like Nike to attract tweens. Lego's net profit rose by 10% to 6.5 billion kroner, buoyed by successful launches, including partnerships with Bluey and Pokémon series.