Vtech 2016 Annual Report Download - page 17

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Asia Pacific
Other Regions
0
30
60
90
120
150
94.1 99.8 108.9
117.6
129.0
Revenue in Asia Pacific in Last 5 Years
12 13 14 15 16
US$ million
67.6
54.9
47.5 50.4 53.3
Revenue in Other Regions in Last 5 Years
12 13 14 15 16
US$ million
0
20
40
60
80
Group revenue in Asia Pacific increased by 9.7% to US$129.0
million in the financial year 2016, as higher sales of ELPs and
CMS offset a decline in TEL products. Asia Pacific represented
6.9% of Group revenue.
Revenue from ELPs in Asia Pacific was up 57.9% to US$40.9
million, mainly driven by growth in China, Australia and Japan.
In China, there was strong demand for core infant and toddler
products, Switch & Go Dinos and Go! Go! Smart Wheels.
Growth was further supported by the expansion of distribution
channels and higher online sales. Sales in Australia increased
significantly as VTech completed the first full fiscal year of
conducting sales and marketing through its own local office.
The revenue growth in Japan was mainly attributable to the
launch of Kidizoom Smartwatch in that market.
TEL products revenue in Asia Pacific declined by 16.3% to
US$36.0 million. Sales growth in India, Taiwan and Hong Kong
only partially compensated for lower sales in Australia, Japan
and China. In Australia, the Group successfully replaced all
Telstra branded phones with VTech branded phones across
all channels during the financial year 2016, while gaining more
placements for its range of baby monitors. In Japan, sales
were lower due to delays of new product launches by
customers, while in China demand for residential phones
was generally weak.
CMS revenue in Asia Pacific rose by 7.0% to US$52.1 million,
primarily driven by higher sales of home appliances, hearables
and professional audio equipment. In home appliances,
a customer closed its own factory and moved all manufacturing
to VTech, leading to a significant sales increase. Sales of
hearables also rose due to a new product introduction from
an existing customer. Professional audio equipment recorded
growth as an existing customer launched a new product.
Solid-state lighting, however, registered lower sales as
the customer faced keen competition from mainland
Chinese brands.
Group revenue in Other Regions, namely Latin America, the
Middle East and Africa, grew by 5.8% to US$53.3 million in
the financial year 2016. Other Regions accounted for 2.9% of
Group revenue.
ELPs revenue in Other Regions decreased by 22.3% to
US$11.5 million, as higher sales in the Middle East and Africa
were offset by lower sales in Latin America.
TEL products revenue in Other Regions increased by 17.4%
to US$41.2 million. Growth was mainly attributable to a sales
increase in the Middle East as shipments of IADs rose, offsetting
lower sales in Latin America.
CMS revenue in Other Regions was US$0.6 million in the
financial year 2016, as compared to US$0.5 million in the
previous financial year.
13VTech Holdings Limited Annual Report 2016