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5
VTech Holdings Ltd Annual Report 2013
Management Discussion and Analysis Financial Review
Gross Profit/Margin
Gross profit for the financial year 2013
was US$597.8 million, an increase of
US$27.0 million or 4.7% compared to
the US$570.8 million recorded in the
previous financial year. Gross profit
margin for the year rose from 32.0%
to 32.2%. The decline in material costs
offset the higher labour costs and
manufacturing overheads arising from
the increase in wages and production
capacity during the financial year 2013.
Revenue
Group revenue for the year ended 31 March 2013 rose by 4.1% to US$1,858.0 million
over the previous financial year. The increase in revenue was largely driven by higher
sales in North America, Europe and Asia Pacific, which offset a decrease in revenue in
other regions.
2013 2012 Increase / (decrease)
US$ million % US$ million % US$ million %
North America 933.4 50.2% 903.5 50.6% 29.9 3.3%
Europe 769.9 41.4% 719.3 40.3% 50.6 7.0%
Asia Pacific 99.8 5.4% 94.1 5.3% 5.7 6.1%
Otherregions 54.9 3.0% 67.6 3.8% (12.7) -18.8%
1,858.0 100.0% 1,784.5 100.0% 73.5 4.1%
For the year ended 31 March 2013
2013
US$ million
2012
US$ million
Change
US$ million
Revenue 1,858.0 1,784.5 73.5
Gross profit 597.8 570.8 27.0
Gross profit margin 32.2% 32.0%
Total operating expenses (373.1) (361.3) (11.8)
Total operating expenses as a percentage of revenue 20.1% 20.3%
Operating profit 224.7 209.5 15.2
Operatingprofitmargin 12.1% 11.7%
Net finance income 1.7 2.1 (0.4)
Profit before taxation 226.4 211.6 14.8
Taxation (24.1) (19.7) (4.4)
Effective tax rate 10.6% 9.3%
Profit for the year and attributable to
shareholders of the Company 202.3 191.9 10.4
Financial Overview
Operating Profit/Margin
Operatingprofitfortheyearended
31 March 2013 was US$224.7 million,
an increase of US$15.2 million or
7.3% over the previous financial year.
Correspondingly, operating profit margin
rose from 11.7% to 12.1%. The ratio of
EBITDA to revenue also increased from
13.3% to 13.7%. The improvement in
both operating profit and operating
profit margin was mainly due to the
increase in gross profit, the improvement
in gross profit margin, as well as the
decrease in total operating expenses as a
percentage of Group revenue.
Operation Profit and Operating
Profit Margin in Last 5 Years
250
200
150
100
50
0
20
16
12
8
4
0
US$ million %
09 10 11 12 13
154.3
224.1 218.7 209.5
224.7
12.1
11.7
12.8
14.6
10.7
Operating profit (US$ million)
Operating profit margin (%)
Total operating expenses were US$373.1
million, an increase of 3.3% over the last
financial year. However, total operating
expenses as a percentage of Group
revenue fell from 20.3% to 20.1%.
vtech.indb 5 13年5月29日 上午3:17