VTech sees sales trending higher after posting record US$2bn annual revenue

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VTech reported , after the market closed,a 12 per cent increase in fiscal year revenue to US$2.1 billion. Photo: Reuters

Published: 9:45pm, 16 May 2017Updated: 10:48pm, 16 May 2017

VTech Holdings, the world’s largest supplier of electronic learning products and cordless telephones, is looking to drive up sales in its current financial year after posting record revenue in the year ended March 31.

On Tuesday, the company reported a 12 per cent increase in fiscal year revenue to US$2.1 billion, up from US$1.8 billion a year ago, on the back of increased sales in North America, Europe and the Asia-Pacific.

Net profit, however, dipped 1.3 per cent to US$179 million from US$181.4 million.

“The fall in profit was mainly due to the one-off costs associated with the acquisition and integration of LeapFrog,” VTech chairman and chief executive Allan Wong Chi-yun said in a regulatory filing on Tuesday.

That included the professional and legal costs associated with the investigation conducted by Britain’s Competition and Markets Authority. It approved the US$71.2 million acquisition of LeapFrog in January, following a probe that started in April last year.

The regulator described VTech and LeapFrog as the two leading suppliers of learning toys as well as children’s tablets and electronic content in Britain.

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