In the year to date VTech's revenues have grown 4.2, driven by higher revenue from electronic learning products - namely the Innotab - in North America and Europe.
VTech’s profits went down five per cent to $191.9 million in 2012. The company’s business also includes telecommunications and contract manufacturing services.
In North America electronic learning sales rose 7.5 per cent, with sales at online retailers ‘especially strong’, VTech said sales of the Innotab compensated for lower sales of its MobiGo and V.Reader products in the region.
In Europe electronic learning sales rose 13.2 per cent, to $310.3 million. The Storio, MobiGo and Innotab products were behind the sales growth.
Revenue from electronic learning products in the Asia Pacific region grew 10.1 per cent to $17.5 million.
“I am pleased to report that in our 35th anniversary year, VTech delivered record revenue for the second straight year amid macro-economic uncertainties. In the financial year 2012, rising input costs posed the biggest challenge to the Group. Raw material prices increased substantially, compounded by rising labour costs and Renminbi appreciation in China. To cope with this, we have raised prices, stepped up cost reduction and improved efficiency through increased automation and product optimisation. Although we were unable to offset the entire cost pressure during the year, we managed to mitigate it to a great extent. This will improve the Group’s ability to achieve future growth,” said Mr. Allan Wong, Chairman and Group CEO of VTech Holdings Limited.
“We have proven strengths in product development, a strong balance sheet, market leadership position and efficient operations. This should enable us to achieve further growth in revenue and hence deliver sustainable returns to shareholders,” said Mr. Wong.
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