The Danish company reported a 26% profit surge in the first half of the year, hitting 8.1 billion Danish krone ($1.2 billion). Consumer sales grew 14%, outpacing the broader toy industry.

CEO Neils Christiansen pointed to the brand’s global appeal and its diverse product portfolio resonating across all ages.

Lego’s success contrasts with global toy sales declines, causing rivals like Hasbro (HAS) to cut 20% of their workforce.

Lego is committed to reducing oil content in its bricks by investing in certified renewable resin, despite higher costs. They’ve tested over 600 materials but are yet to find a perfect oil-free brick.

By 2026, at least half of Lego’s resin will be sustainably sourced, up from 30% in 2024, through the mass balance method. The goal is all products from renewable and recycled materials by 2032.

Christiansen revealed the company absorbs the added costs to drive demand for sustainable materials, acknowledging consumers aren’t ready for price hikes.

This shift comes as cheap virgin plastic floods the market, driven by oil companies’ petrochemical investments, making plastics a key future oil demand driver.

Lego’s suppliers are turning bio-waste like cooking oil and recycled materials into plastic. However, renewable plastic is still emerging, as much feedstock is used for subsidized biodiesel.

According to Neste, sustainable plastic costs double or triple compared to fossil-based ones.

Competitors like Hasbro are also using plant-based or recycled materials, while Mattel (MAT) targets using only sustainable plastics by 2030.

Currently, 90% of all plastic is made from virgin fossil fuels, according to PlasticsEurope.