VTech Announces 2026/2027 Interim Results

Detailed summary

Higher revenue on rebound for ELPs and CMS Group revenue increased 5.6% to US$1,046.9 million Gross profit margin declined from 31.9% to 30.1% on higher costs Profit attributable…

HONG KONG, Nov. 12, 2026 /PRNewswire/ -- VTech Holdings Limited (HKSE: 303) today announced its results for the six months ended 30 September 2026.

"VTech reported higher revenue in the first half of the financial year 2027. The stabilisation of US tariff policy and good sell-through of new products led to a rebound in sales of electronic learning products, while restocking by customers resulted in more orders for contract manufacturing services. These offset a decrease for telecommunication products. Europe and Asia Pacific reported growth, which compensated for declines in North America and Other Regions. Profit attributable to shareholders of the Company declined, however, as costs rose," said Mr. Allan Wong, Chairman and Group CEO of VTech Holdings Limited.

Group revenue for the six months ended 30 September 2026 rose by 5.6% to US$1,046.9 million, from US$991.1 million in the corresponding period last year. Higher sales in Europe and Asia Pacific offset lower sales in North America and Other Regions.

Profit attributable to shareholders of the Company decreased by 12.9% to US$65.1 million. The decrease in profit was attributable to a decline in the Group's gross profit, as there was an increase in cost of sales. Cost of materials, direct labour costs, manufacturing overheads and freight charges rose during the period. Higher Group effective tax rate also contributed to the lower profit. These factors offset the positive impact of lower tariffs imposed on the Group's US-bound products.

Basic earnings per share decreased by 12.9% to US25.7 cents, compared to US29.5 cents in the same period of the previous financial year.

The Board of Directors has declared an interim dividend of US17.0 cents per ordinary share, unchanged from the interim dividend declared in the first half of the financial year 2026.

The Group's gross profit margin in the first six months of the financial year 2027 was 30.1%, against 31.9% in the same period of the previous financial year.

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