In its financial results for the year ended March 31, VTech Holdings Ltd. reported a decline in revenue and profit. Group revenue for the year ended March 31 declined by 1 percent to $1,879.8 million. The decrease was mainly due to lower revenue in North America, which offset higher revenue in Europe, Asia Pacific, and other regions.
Profit attributable to shareholders of the company decreased by 2.8 percent to $198.1 million, as gross profit declined due to a change in product mix and the weaker-than-expected performance of children’s educational tablets. Basic earnings per share fell by 3 percent to 78.9 cents, compared to 81.3 cents in the previous financial year. Gross profit margin declined to 32.5 percent from 33.4 percent in the last financial year.
Group revenue in North America decreased by 5.4 percent to $899.5 million in financial year 2015. Lower revenues from ELPs and CMS offset higher revenue from TEL products. North America remained VTech’s largest market, accounting for 47.8 percent of group revenue.
Group revenue in Europe increased by 2.6 percent to $812.3 million in financial year 2015. Higher sales of TEL products and CMS offset a sales decline in ELPs. Europe was VTech’s second largest market, accounting for 43.2 percent of group revenue. Group revenue in Asia Pacific increased by 8.0 percent to $117.6 million in the financial year 2015, with higher sales in all three product lines. Asia Pacific accounted for 6.3 percent of group revenue.