Lego builds China empire as profit growth returns

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Lego builds China empire as profit growth returns
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The toy firm's recovery looks to be on track as it reports a return to revenue growth and profits in its last financial year.

Lego is building on its presence in China after"stabilising the business" in 2018 despite the collapse of Toys R Us damaging consumer exposure to its products.

Sales had fallen for the first time since 2004 the previous year, as demand for its plastic block toys suffered in a crowded toy market - the company warning it would take some time to return to growth.It had also announced plans to cut 8% of its global workforce as part of its efforts to"reset" the business.

However, the private Danish firm said on Wednesday that revenue rose 4% to $5.5bn in 2018 - with profits hitting $1.2bn thanks largely to double-digit growth in China and a partial recovery of sales in the US and western Europe.Chief executive Niels B Christiansen said:"We are especially encouraged by our progress given the challenges facing the toy industry and the departure of specialist retailers such as Toys R Us that went under last year.

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