In its end of financial year report, global electronic education toy maker, VTech, has posted record revenues, fuelled it says, by the key acquisition of LeapFrog.
In a statement released to the market for the financial year ending 31 March 2017, group revenue rose by 12 per cent to US$2,079.3 million, supported by higher sales in North America, Europe and Asia Pacific.
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 US$179.0 million, owing to the one-off costs associated with the acquisition of LeapFrog. These encompass the professional and legal costs for the investigation initiated by the UK 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,” Allan Wong, chairman and group CEO of VTech Holdings Limited said.
“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.”