In Brazil, Lego loses but margin sale grows 61%

The toy maker to assemble Lego, headquartered in Denmark, has increased 61% in revenues in Brazil in 2013. The goal was to grow 50%, said Stephen Edwards, Director of m. Cassab, Lego's distributor in Brazil.
"It is not enough to invest in communication or in releases, if it's the wrong time," he says. In order to achieve the result, Lego had to sacrifice about four points in margins in 2013, due to the appreciation of the dollar above the price adjustments. The company raised in 7% Brazil prices in mid-2013. The dollar rose 15.2 percent last year.
"Last year was pretty challenging. We cannot close our eyes to the risks of inflation, to the Exchange variation and the scenario of uncertainties, "says Edwards. "The fact that the company has achieved the result seen in 2013 is due to market potential." Revenue increased in all regions in 2013. In the Northeast, there was high of 111.2%; in the North, to 85.1%. The Southeast rose 72.1%; the Midwest, 47.2%; and the South, 36.1%.
The President of Lego Systems, a subsidiary of Lego to America, Soren Torp Lausen, told the newspaper "Folha de s. Paulo" that this year the company will open an Office in São Paulo. The Brazil is regarded as an opportunity for growth.
The jump of Lego billing in Brazil occurred on an advance of 50% in 2012. "We prepare to grow at a very high level. In the middle of the year, we believe that it would be possible to go beyond 50% growth, which was already a very aggressive projection, "says Edwards. He attributes the improvement to factors such as the large volume of product launches, investments in communication and the conquest of new retail customers in 2013.
In 2013, the Lego led to 299 national retail products and 237 news. There was a renewal of 84% of the assortment of the brand in the country regarding 2012. In communication, the company made ads on cable TV channels and promotional actions in points of sale, in addition to events and a partnership with Raízen, licensed from Shell brand in Brazil, to sell Ferrari miniatures made of Lego in 2.7 thousand gas stations.
In the world, the company continued leadership among the toys to assemble. Worldwide revenue was $ 4.1 billion in 2012, 17% higher than the previous 12 months. The disclosure of the numbers of 2013 is expected for the next few months.