VTech enjoys ‘record revenue’ in Q1 results

Global toy firm, VTech, has detailed its results for the year ended March 31st 2017, citing ‘record revenue’ following three acquisitions.

Group revenue spiked by 12.0 per cent to $2,079.3 million, supported by higher sales in North America, Europe and Asia Pacific.

According to the firm, gross margin improved from 31.4 per cent to 33.2 per cent, while profit attributable to shareholders of the company fell by 1.3 per cent to $179.0 million.

The fall in the profit was mainly due to the one-off costs associated with the acquisition of LeapFrog, cited the firm, including the professional and legal costs associated with the investigation by the UK’s Competition and Markets Authority.

Elsewhere, basic earnings per share decreased by 1.2 per cent to US71.3 cents, compared to US72.2 cents in the previous financial year.

"In the financial year 2017 VTech achieved record revenue, surpassing the $2 billion mark,” said Allan Wong, chairman and group CEO of VTech Holdings Limited.

“A relatively favourable cost environment saw gross margin improve, although profit was affected by one-off costs associated with the integration of LeapFrog. The group also laid the ground for future growth, with the completion of three strategic acquisitions.”

About Robert Hutchins

Robert Hutchins is the editor of Licensing.biz and ToyNews. Hutchins has worked his way up from Staff Writer to the position of Editor across the two titles, having spent almost eight years with both ToyNews and Licensing.biz, and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@biz-media.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobGHutchins if ranting is your thing...

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