2025-11-13 08:30Financial Performance - Revenue decreased by 9.0% to $991.1 million compared to the previous period[4] - Profit attributable to shareholders decreased by 14.5% to $74.7 million[4] - Basic earnings per share was 29.5 cents, down from 34.6 cents[3] - Total comprehensive income for the period was $83.6 million, compared to $103.5 million in the previous period[5] - The total operating profit for the six months ended September 30, 2025, was $92.9 million, compared to $104.2 million in 2024, indicating a decrease of approximately 10.9%[19] - The profit attributable to shareholders fell by 14.5% to $74.7 million, primarily due to the decrease in revenue and an increase in operating expenses as a percentage of revenue[35] - Operating profit fell to $92.9 million, down $11.3 million or 10.8%, with the operating margin decreasing to 9.4% from 9.6%[70] - Net profit attributable to shareholders was $74.7 million, a decline of $12.7 million or 14.5%, resulting in a net profit margin decrease to 7.5% from 8.0%[71] Revenue Breakdown - North America generated $398.3 million in revenue for the six months ended September 30, 2025, down from $453.1 million in 2024, a decline of about 12.1%[19] - Europe reported revenue of $429.0 million for the six months ended September 30, 2025, compared to $462.1 million in 2024, reflecting a decrease of approximately 7.2%[19] - The Asia-Pacific region's revenue was $150.4 million for the six months ended September 30, 2025, slightly down from $159.4 million in 2024, a decline of about 5.6%[19] - For the six months ended September 30, 2025, the group's revenue decreased by 9.0% to $999.1 million from $1,089.7 million in the same period last year[35] Asset and Liability Management - Non-current assets totaled $286.9 million, with tangible assets at $95.6 million[6] - Current assets amounted to $1,109.5 million, with inventory at $451.0 million[6] - The net asset value was $616.8 million, down from $627.0 million[6] - The total amount of accounts receivable, deposits, and prepayments was $505.5 million, compared to $331.2 million as of March 31, 2025[29] - The total amount of accounts payable and accrued expenses was $585.8 million, compared to $486.1 million as of March 31, 2025[31] - The group reported a total of $1,321.6 million in segment assets as of September 30, 2025, an increase from $1,247.7 million as of March 31, 2025[20] - The total segment liabilities as of September 30, 2025, were $(749.8) million, compared to $(655.9) million as of March 31, 2025, indicating an increase in liabilities[20] Dividend and Shareholder Returns - The company maintained an interim dividend of 17.0 cents per share[4] - The board declared an interim dividend of 17.0 cents per share, consistent with the interim dividend declared for the first half of the fiscal year 2025[37] - The company announced an interim dividend of $0.17 per share, totaling an estimated $43 million[72] Cost Management - The cost of goods sold for the six months ended September 30, 2025, was $675.3 million, down from $746.2 million in 2024, a decrease of approximately 9.5%[21] - Research and development expenses decreased to $41.4 million, down 9.8% from the previous year, maintaining a ratio of 4.2% of total revenue[70] - Employee-related costs for the six months ended September 30, 2025, were approximately $198.6 million, compared to $204.4 million in the same period last fiscal year[79] Market Performance and Product Development - The group launched several new products, including the VTech Baby® 4-in-1 Steps & Stages Activity Center™ and LeapFrog's Strum & Count Wooden Guitar™, aimed at enhancing children's learning and play experiences[41] - In Europe, the group's revenue decreased by 7.2% to $429 million, with electronic learning product revenue increasing by 5.5% to $144.6 million, driven by new product launches and a stronger Euro[48] - The group achieved a 6.9% increase in revenue from contract manufacturing services in North America, reaching $146.5 million, driven by strong orders for professional speakers[47] - The group reported a decline in sales for its KidiZoom® Smartwatch and Touch & Learn Activity Desk, impacting overall performance in the electronic learning product category[49] Future Outlook - The group expects a decline in overall revenue for the fiscal year 2026, but anticipates improved sales in the second half driven by growth in electronic learning and telecommunications products[62] - Sales in the Asia-Pacific region are expected to slightly decline for the fiscal year, but improvements are anticipated in China with new product launches[63] Awards and Recognition - The group received multiple awards for its products, including three awards at the "2025 Toy Grand Prix" in France[50] - The group remains the number one baby monitor brand in the U.S. and Canada, with a notable recognition in the "Women's Choice Award 2025" for its baby monitors[45] Risk Management - The group maintained a strong financial position with no bank borrowings as of September 30, 2025[73] - The group’s financial policy aims to mitigate foreign exchange risks through the use of foreign exchange futures contracts[75] - The group’s risk management and internal control mechanisms were deemed effective and sufficient as of September 30, 2025[84]