VTech (HKEX: 303) announced unaudited interim results for the six months ended 30 September 2025, reporting Group revenue of US$991.1 million, down 9.0% compared with the same period in the previous financial year. Profit attributable to shareholders declined by 14.5% to US$74.7 million, while the gross profit margin improved from 31.5% to 31.9%. The interim dividend was maintained at US17.0 cents per share.
According to the announcement, the lower revenue came mainly from a reduction in sales of Electronic Learning Products (ELPs) and Contract Manufacturing Services (CMS). Segment-wise, North America delivered revenue of US$398.3 million and Europe reported US$429.0 million. Asia Pacific posted US$150.4 million, and Other Regions accounted for US$13.4 million. Overall, ELPs were impacted by tariff-related shipment delays in the US, while CMS faced weaker demand in certain product categories. Telecommunication Products (TEL) saw some growth in Europe, supported by strong performance of Gigaset models.
The announcement highlighted that VTech maintained a solid financial position and remained debt-free as of 30 September 2025. The cash balance was noted at US$147.9 million. Stocks rose to US$451.0 million, primarily to address demand in the second half of the financial year and accommodate seasonal factors.
In terms of outlook, the announcement indicated that the overall macroeconomic environment remains challenging due to lingering geopolitical influences and tariff uncertainties. The company forecasts a continued year-on-year revenue decline for the full financial year, with a possible improvement in sales during the second half. The gross profit margin for the full year is expected to remain broadly stable.
Additional details within the announcement covered corporate governance practices, risk management, and internal audit functions, demonstrating a continuing commitment to compliance with applicable regulations. The Board has scheduled the interim dividend payment for 19 December 2025 to shareholders of record as of 10 December 2025.