VTech said it had achieved a ‘solid result’, reporting higher revenue and profit as materials supply and gross margin improved.
VTech Holdings has announced its results for the six months ended 30th September 2022, showing higher revenue and profit as materials supply and gross margin improved.
Group revenue for the six months rose to $1,164.8m, up 4.5% from $1,114.8m in the corresponding period last year. Higher sales in North America and Asia Pacific offset lower sales in Europe and other regions. The revenue growth was partially due to some shipments to major markets having been advanced in order to avoid logistics delays.
“VTech achieved a solid result in the first half of the financial year 2023, recording an increase in both revenue and profit,” commented Allan Wong, chairman and Group CEO of VTech Holdings.
“The growth in revenue came as the supply of materials improved, leading to better order fulfilment and resulting in higher sales in North America and Asia Pacific. Profitability was buoyed by an improvement in gross profit margin.”
Group revenue in Europe decreased by 3.2% to $470.4m in the first six months of the financial year 2023, though Europe remained VTech’s second largest market, accounting for 40.4% of Group revenue.
Electronic learning products (ELPs) revenue in Europe rose by 5.4% to $159.3m and in the first nine months of 2022, VTech remained the number one infant and toddler toys manufacturer in France, the UK, Germany and the Benelux countries.
In standalone products, both VTech and LeapFrog branded products reported sales increases. For VTech, pre-school products, electronic learning aids, KidiZoom cameras, the Kidi line of products, Marble Rush and eco-friendly toys saw growth, offsetting declines in the Toot-Toot family of products. Sales of infant and toddler products, as well as Switch & Go Dinos, held steady while for LeapFrog, pre-school products and LeapLand Adventures posted sales increases. The launch of Magic Adventures Microscope and the new licensed version of LeapLand Adventures added to growth and this offset sales declines in the brand’s infant and toddler products.
Group revenue in North America increased by 6.5% to $530.5m and during the first nine months of 2022 the Group maintained its leadership as the number one manufacturer of electronic learning toys from infancy to toddler and pre-school in the US. Group revenue in Asia Pacific increased by 27.9% to $152.2m,
“The headwinds from the global economy are growing. However, VTech has a solid balance sheet and strong brands backed by product innovation and operational excellence. We are confident of managing the business through this challenging period and emerging as a stronger company,” concluded Allan Wong.
