VTech Announces 2026/2027 Interim Results

(FSE:VTCB) VTech Holdings Limited announced its results for the six months ended 30 September 2026, reporting a 5.6% increase in Group revenue to US$1,046.9 million, up from US$991.1 million in the prior year period. Gross profit margin declined from 31.9% to 30.1% due to higher costs for materials, direct labour, manufacturing overheads, and freight, as well as a higher effective tax rate. Profit attributable to shareholders of the Company decreased by 12.9% to US$65.1 million. Basic earnings per share fell by 12.9% to US25.7 cents, compared to US29.5 cents in the previous year. The Board declared an unchanged interim dividend of US17.0 cents per ordinary share. North America revenue decreased by 6.1% to US$374.1 million, accounting for 35.7% of Group revenue. In North America, ELPs revenue rose by 10.4% to US$184.3 million, while TEL products revenue fell by 21.5% to US$66.6 million and CMS revenue declined by 15.9% to US$123.2 million. Europe revenue increased by 15.4% to US$495.1 million, representing 47.3% of Group revenue. In Europe, ELPs revenue rose by 1.6% to US$146.9 million, TEL products revenue increased by 6.7% to US$112.2 million, and CMS revenue grew by 31.7% to US$236.0 million. The company attributed higher costs to rising materials prices, shortages and higher prices for electronic components due to AI industry demand, higher oil and commodity prices from Middle East conflict, and Renminbi appreciation. Lower tariffs on US-bound products provided some positive impact. VTech maintained leading market positions in infant, toddler, and preschool toys in Canada, the US, and several European countries, and received multiple industry awards for its products. The company reported strong financial position with net cash and no bank borrowing. Sales momentum was described as positive, with new product launches and restocking by customers supporting growth in key segments.