The group has posted record revenue alongside strong growth in Asia Pacific.
Group revenue for the year increased by 2.4% to $2,130.1m, driven by higher sales in North America and Asia Pacific. Growth of electronic learning products (ELPs) was negatively impacted by Toys R Us’ bankruptcy.
Standalone and platform products both achieved sales increases in the financial year 2018. In standalone products, further progress was made in growing LeapFrog’s standalone products business, as more new standalone toys were launched under the brand. Sales of VTech standalone products also rose, supported by higher sales of infant and pre-school products, as well as Kidizoom Camera. This offset the sales decline of the Go! Go! Smart/Toot-Toot family of products.
Growth in platform products was primarily driven by VTech platform products, with the Kidizoom Smartwatch range, KidiBuzz/KidiCom Max and Touch and Learn Activity Desk Deluxe all recording sales increases. LeapFrog reading systems, including LeapStart/MagiBook and LeapReader, also registered sales increases. The percentage shares from standalone and platform products within total ELPs revenue remained unchanged during the financial year 2018, at 77% and 23% respectively.
Allan Wong, chairman and group CEO of VTech Holdings, commented: “The financial year 2018 saw revenue at VTech reach another record high, mainly driven by strong growth in the Asia Pacific region. Profit was also higher, owing to increased revenue and the absence of one-off costs associated with the integration of LeapFrog. The Group remains well-positioned for further growth.”