VTech has announced its results for the six months ending 30th September 2015, reporting further growth in revenue.
Group revenue grew by 3.0% over the same period of the previous financial year to US$928.1 million. This was primarily due to higher revenue in North America, Europe and other regions offsetting lower revenue in Asia Pacific.
Profit attributable to shareholders of the company decreased by 2.5%. The fall in profit was mainly attributable to the decline in gross margin, which resulted from unfavourable currency movements and a change in product mix.
Group revenue in Europe in the first six months of the financial year 2016 was up 3.8% to US$373.7 million, mainly due to higher CMS sales. Europe is the second largest market of the group, representing 40.3% of group revenue.
ELPs revenue in Europe decreased by 8.7% to US$129.2 million, a decline that was primarily due to the depreciation of the European currencies against the US dollar and lower sales of platform products. Sales in the UK increased, while those in France, Germany and Spain declined. During the first nine months of the calendar year 2015, VTech continued to gain market share and strengthened its position as the number one infant toy manufacturer in France, the UK, Germany and Belgium.
VTech ELPs won acclaim in Europe during the first six months of the financial year. In France, recognition included four 2015 Grand Prix du Jouet awards. Toot-Toot Drivers Garage won a gold medal in the UK’s Independent Toy Awards, while Kidizoom Action Cam was the Belgian Federation of Toys Toy of the Year 2015.
Allan Wong, chairman and group CEO of VTech, said: “It has been a steady start to the financial year 2016. Going forward, VTech will continue to focus on product innovation, increasing market share, expanding geographically and pursuing operational excellence to enhance shareholder value.”