VTECH HOLDINGS(HK:00303)2023-05-17 09:01Financial Performance - Group revenue decreased by 5.4% to $2,241.7 million, compared to $2,370.5 million in the previous fiscal year[3] - Profit attributable to shareholders fell by 13.6% to $149.2 million, down from $172.7 million[4] - Basic and diluted earnings per share decreased to 59.1 cents from 68.5 cents[4] - Operating profit declined to $180.5 million from $203.8 million[4] - The company reported a total comprehensive income of $174.7 million for the year ended March 31, 2023, compared to $172.7 million for the previous year, reflecting a slight increase[7] - The pre-tax profit for the year 2023 was reported at $149.2 million, a decrease from $172.7 million in 2022, representing a decline of approximately 13.5%[22] - The net profit attributable to shareholders for the fiscal year was $149.2 million, down $23.5 million or 13.6%, resulting in a net profit margin decline from 7.3% to 6.7%[48] Dividends - Total dividend per ordinary share for the year was 59.0 cents, with a final dividend of 42.0 cents per share[3] - The board proposed a final dividend of 42.0 cents per share, resulting in a total annual dividend of 59.0 cents per share, a decrease of 13.2% from 68.0 cents in the previous fiscal year[32] - The company paid dividends totaling $171.8 million during the year, down from $229.7 million in the previous year, reflecting a reduction in cash outflow[8] - The interim dividend declared was $42.9 million for both 2023 and 2022, maintaining the same level[21] - The proposed final dividend for 2023 is $106.1 million, down from $128.7 million in 2022, representing a decrease of approximately 17.6%[21] Revenue Breakdown - Revenue from electronic learning products was $891.4 million, down from $1,025.5 million, reflecting a decrease of about 13.1%[11][12] - The North America segment generated $984.8 million in revenue, a decrease of 7.8% from $1,068.5 million in the prior year[11][12] - The Europe segment reported revenue of $917.0 million, down from $1,025.1 million, indicating a decline of approximately 10.6%[11][12] - The Asia-Pacific region contributed $315.8 million in revenue, a decrease of 22.8% from $255.0 million in the previous year[11][12] - Revenue in Europe decreased by 10.5% to $917 million, accounting for 40.9% of the group's total revenue[64] - Revenue in the Asia-Pacific region rose by 23.8% to $315.8 million, supported by increased sales in telecommunications and contract manufacturing services[68] Expenses and Costs - Operating expenses for the fiscal year were $454.9 million, representing 20.3% of total revenue, compared to 19.6% in the previous year[43] - Research and development expenses were $83.3 million, slightly down from $84.3 million[4] - Total operating expenses decreased from $464.8 million to $454.9 million, with the percentage of total revenue rising from 19.6% to 20.3%[47] - The total tax expense for the year was $19.3 million in 2023, compared to $21.9 million in 2022, indicating a reduction of about 11.9%[19] Assets and Liabilities - Total assets decreased to $1,008.8 million from $1,142.2 million[6] - Total equity decreased to $634.7 million from $678.8 million[6] - The company reported total liabilities of $(683.7) million, down from $(807.9) million in the prior year[17] - As of March 31, 2023, total shareholder equity was $634.7 million, down 6.5% from $678.8 million, with net cash increasing from $195.8 million to $198.5 million, a rise of 1.4%[50] Inventory and Receivables - The company experienced a decrease in inventory by $77.8 million, compared to an increase of $139.3 million in the previous year, showing improved inventory management[8] - Total accounts receivable, deposits, and prepayments amounted to $324.3 million in 2023, a decrease from $384.9 million in 2022, reflecting a decline of approximately 15.7%[24] - Accounts receivable fell from $325.4 million to $277.2 million, with turnover days decreasing from 65 days to 59 days[54] Market and Operational Challenges - The operating environment was challenging due to high inflation and rising interest rates, affecting consumer confidence in North America and Europe[34] - The company faced supply chain issues, particularly with semiconductor shortages impacting product availability, although some key component supplies improved during the fiscal year[34] - The telecommunications product sales decreased, with commercial phones and other telecommunications products representing 57% of total telecommunications revenue in fiscal year 2023, down from 59% in fiscal year 2022[35] Strategic Initiatives - The company is advancing towards Industry 4.0, optimizing supply chains and production processes through machine learning, AI, and automation[37] - The restructuring of electronic learning and telecommunications operations aims to create a more efficient organization that can respond quickly to market changes[39] - The company is enhancing its manufacturing capabilities in Mexico to meet higher demand for emergency production facilities outside of China[37] Sustainability Efforts - The company is committed to sustainable practices, including the installation of solar panels and the use of water-based coatings to reduce VOC emissions[38] - Over 95% of the packaging materials for electronic learning products are recyclable, with approximately 85% made from recycled materials[38]