COPENHAGEN, Feb. 27 -- Denmark-based Lego announced 2013 profits of 1.1 billion U.S. dollars Thursday, securing its place as the world's second largest toymaker behind Mattel.
Lego's profits were up 9 percent, while sales rose 11 percent to 4.65 billion dollars, bucking a trend that saw a decline in overall global toy sales.
The growth sees the unlisted Lego eclipse Hasbro as the world's number two toymaker. Hasbro posted sales of 4.1 billion dollars in 2013, while Mattel remains far ahead with sales of 7.1 billion dollars.
"The key to our success is that we constantly innovate and update our selection of products. In 2013, we successfully launched products that are at the top of children's wish lists," managing director Joergen Vig Knudstorp said during a presentation.
Knudstorp expected growth to continue in 2014 on the back of new product releases and the knock-on effect of a popular feature film based on the toys.
The company expected its strongest growth in the coming year to come from emerging markets "south of the equator" in Latin America and Asia.
Among Lego's best sellers over the past 12 months were the Lego Friends series, which posted double-digit growth rates, Lego Star Wars and the new Lego Legends of Chima.
Classic lines such as City, Duplo and Technic also performed well, according to the company.
Lego, which was on the brink of bankruptcy in 2004, has staged a phenomenal turnaround under Knudstorp and his back-to-basics policy.