VTech reported record earnings for the first quarter of 2017.
VTech, an international toy company, announced record sales for the first quarter of 2017 due to three acquisitions.
Encompassing the entire group including its acquired companies, VTech’s revenue reached a record $2.1 billion. Yes, that is BILLION with a ‘B’ – not millions! These record results were driven by increased sales across North America, Europe, and Asia.
Gross margin soared from 31% to 33% while shareholders’ profit dipped 1.3% to $179 M. VTech stated the drop in profit was attributed to costs related to LeapFrog’s strategic acquisition in addition to other professional and legal costs. Expenses tied to the cyber attack from 2015 also caused the decline in profits.
Earnings per share dropped 1.2 percent to $71.30 per share whereas last year during the same period it was $72.20 per share.
Allan Wong, Chairman and CEO of VTech, stated in this fiscal year VTech attained record earnings, eclipsing the $2 billion threshold.
According to Wong, VTech benefitted from a favorable cost environment which drove positive gross margin while profit was impacted by costs linked with LeapFrog’s acquisition and integration. With three strategic acquisitions on the books, VTech is poised for growth in the coming years.