News of corporations. The company Lego suffered an actual loss of profits because of Trump’s statements
The world-known producer of children’s toys Lego A / S has reported on the revenue for 2016. The annual press release reports that, contrary to forecasts, the company’s revenue has amounted to $ 5.38 billion. Top management and shareholders of the company are unhappy with the figures as the revenue growth has totaled 6% instead of the expected 10%.
It should be noted that over the past 10 years, the company’s annual revenue growth has not fallen to such a modest figure. For example, 2015 was incredibly successful for Lego a / s. According to its results, the revenue growth amounted to 25%, and net profit – to 31%.
Compared to 2015, the revenue in 2016 increased by 0.22 billion DKK in absolute terms and amounted to 9.44 billion DKK.
Insufficient growth of financial indicators of the company is associated with the deterioration of the economic situation in the USA. The United States was and remains the main sales market of the Danish toy products.
Unfortunately, the prevailing negative trend is likely to continue. Fears of analysts and the top management of the company are based on the intention of the US President Donald Trump to impose duties on trade flows from Mexico. And the production facilities of Lego A / S are located exactly there, and their transfer to the USA is not being planned.
The material was prepared with the participation of Dmitriy Gorin,
a leading analyst of the brokerage company VOSPARI.