VTech Holdings Ltd. reported results for the first six months ended Sept. 30, reporting higher revenue and profit. Group revenue for the six months increased 5.8 percent to $1,039.7 million, supported by higher sales in North America, Europe, and Asia Pacific.
Profit attributable to shareholders of the company increased by 45.1 percent to $103.6 million. The rise in profit was due to higher revenue, product mix improvement, the absence of the one-off costs associated with the integration of LeapFrog Enterprises Inc. (LeapFrog) and the contribution from the Snom Technology GmbH (Snom) business.
Basic earnings per share rose 45.1 percent to 41.2 cents, compared to 28.4 cents in the first six months of the previous financial year. The Board of Directors has declared an interim dividend of 17.0 cents per ordinary share, unchanged from the interim dividend declared in the corresponding period last year.
The Group’s gross profit margin in the first six months of the financial year 2018 rose from 31.9 percent to 32.3 percent. The improvement was mainly due to a more favorable product mix, a positive currency impact and productivity gains, despite an increase in materials prices. During the period, the Group has successfully brought most of the LeapFrog and Snom products in-house for manufacture.
Group revenue for the financial year 2018 is expected to increase.