VTech full-year net profit declines nearly 6pc to US$156.8m

VTech (0303) recorded a nearly 6 percent drop in full-year net profit to US$156.8 million (HK$1.22 billion).

The Hong Kong-based maker of children's electronic learning products blamed the decline on rising costs from European communication device maker Gigaset, which it acquired in 2024 April.

However, revenue in the year ended March climbed 1.5 percent year-on-year to US$2.18 billion, due to Gigaset's sales.

VTech cut its final dividend by 8.33 percent to 44 US cents.

Its gross margin rose 1.9 percentage points to 31.5 percent, thanks to lower raw material costs and an improved product mix.

The company anticipates this year’s revenue to decline while its gross margin remains flat, given the uncertainties surrounding US tariffs.

It plans to pull production lines that export products to the United States out of China by next year.

STAFF REPORTER