Good afternoon, ladies and gentlemen. Welcome to our webcast. Today, VTech Holdings Limited is announcing its annual results for the year ended 31st of March, 2022. Let me introduce our management. Mr. King Pang, Executive Director and Group President, Mr. Allan Wong, Chairman and Group CEO of VTech Holdings, Mr. Andy Leung, Executive Director and CEO of Contract Manufacturing Services, and Ms. Shereen Tong, Group Chief Financial Officer. First of all, Ms. Tong will present the group financial performance and cost environments. Next, Mr. Leung will reveal the group results in North America and Europe. Mr. Pang will then continue to share the rest of the segment results and give the management outlook for the coming year. We will finish our presentation with a Q&A session. May I now invite Ms. Tong to open today's presentation. Ms. Tong, please.
Thank you, Grace. Good afternoon, ladies and gentlemen, and all viewers online. First of all, I'm glad to share with you the financial highlights of the group for the year ended March 31, 2022, compared with the same period of the last year. As you see from the slide, the revenue of the group reduced slightly by 0.1% to $2,317.5 million. The slight decrease in revenue was due to the reduction in revenue in Europe, Asia Pacific and other regions, which offset the higher sales in North America. The gross profit of the group reduced by 7.9% to $669.1 million, and our gross profit margin also reduced from 30.6%- 28.2%. The reduction in gross profit and gross profit margin was mainly due to the drastic increase in freight cost, higher labor costs and manufacturing overhead, as well as the increase in material prices.
These were partially offset by a change in product mix. Our operating profit reduced by 23.4% to $203.8 million, and our operating profit margin also reduced from 11.2%- 8.6%. The reduction in operating profit and operating profit margin was mainly due to the decline in gross profit and gross profit margin. Operating profit for the year also include government subsidies of $0.5 million in response to COVID-19, as compared with an amount of $5.7 million in the last financial year. Our profit attributable to shareholders reduced by 25.2% to $172.7 million. And our net profit margin also reduced from 9.7% to 7.3%. As a result, our basic earnings per share reduced by 25.2% to $0.685 .
Our board of directors has proposed a final dividend of $0.151 , bringing the total dividend per share for the year to $0.68 , a decrease of 25.3% compared with the last financial year. Turning to the revenue by region, North America was the largest market of the group, accounting for 45.1% of the group's revenue. Our sales in North America rose by 7.4% to $1,068.5 million. It was mainly due to the higher sales of all our three product lines. Our sales to European market reduced by 5.6% to $1,025.1 million. It was mainly due to the lower sales of our telecom products and Contract Manufacturing Services, which offset the higher sales of our Electronic Learning Products. In Asia Pacific region, the revenue of the group reduced by 5% to $255 million.
The decrease in revenue was due to the decline in sales of our telecom products and Contract Manufacturing Services, which offset the higher sales of our Electronic Learning Products. Other regions include Latin America, Middle East and Africa. The group's revenue in other regions reduced by 2.7% to $21.9 million. It was mainly due to the decrease in sales of our telecom products and Contract Manufacturing Services, which offset the higher sales of our Electronic Learning Products. Our stock balance as at 31st of March, 2022 increased from $414 million to $553.3 million compared with the same period of the last year. Our stock turnover days also increased from 103 days to 131 days.
The highest stock level was mainly due to the stock up of raw materials in view of the unstable supply, as well as the increased demand for the group's product in the first quarter of the financial year 2023. We have also arranged early production of the group's products in order to better utilize the group's production capacities and pull the in-shipment to our overseas warehouse so as to mitigate the risk of further capacity constraints in the peak season of the financial year 2023. Our trade debtors balance as at 31st of March, 2022 increased from $270.7 million to $325.4 million. Our trade debtors turnover days increased slightly from 61 days to 65 days. The higher trade debtors balance was mainly due to the increase in revenue in the fourth quarter of the financial year 2022, compared with the same period of the last year.
Our financial positions remained very strong. We were debt-free, and our net cash balance as at 31st of March, 2022 was $195.8 million. A decrease of 43% competitive with the same period last year of $343.8 million. The reduction in net cash balance was mainly due to the decline in EBITDA, increase in working capital investment, as well as the higher dividend payment competitive with the last financial year. As I mentioned earlier, the group's gross profit margin in the financial year 2022 was 28.2%, as compared with a gross profit margin of 30.6% in the last financial year. The decline in gross profit margin was mainly due to the unprecedented increase in freight cost arising from the container shortages globally.
Our labor costs and manufacturing overhead were also higher than the last financial year, which were mainly due to the appreciation of renminbi, as well as the unstable supply of materials impacting productivity. The increase in material prices, especially electronic components and plastics, also contributed to decline in gross profit margin. These prices were partially offset by a change in product mix. Nevertheless, improvement was seen in the second half of the financial year as the group raised prices for its products. Freight costs also declined slightly after the peak shipping season, while the supply of semiconductors remained tight. The operating environment for the group's businesses was extremely challenges in the financial year 2022. There was continual disruption in the global supply chain, leading to material shortages, significant cost increase, as well as shipment delays.
Our productivity was also impacted by this instability, which resulted in more overtime payment and thus higher labor cost. On the sales side, while demand for the group's products was strong, some orders could not be fulfilled properly owing to the shortages of material supply and shipment delays, which led to late availability of the group's products and low channel inventory. In response to these challenges, VTech moved swiftly to implement measures to mitigate these negative impacts, which began to take effect in the second half of the financial year 2022. With our close and long-standing relationship with suppliers, it enabled us to secure a more stable supply of critical components. We had also re-engineered our products to lower the cost and accommodate alternative parts, source alternative shipping carriers to secure containers, and increase the stock of critical components.
In addition, we had to start production earlier to allow a longer time for shipment and transportation of our products to the customers and raise product prices, thereby passing through some of the cost pressures to the consumers. As a result, we managed to achieve stable revenue for the full financial year 2022. As for the profitability, it improved in the second half as compared with the first six months of the financial year. That is all of my presentation. I will now invite Mr. Andy Leung to share with you our operations review. Mr. Leung, please.
Thank you, Shereen. Good afternoon to all of you. Thank you very much for joining us today. I will now cover the operation review of North America and Europe, starting with North America. Group revenue in North America increased by 7.4% to $1,068.5 million in the financial year 2022. Both ELP telecom products and CMS reported higher sales during the period. North America was the largest market of VTech, accounting for 45.1% of the group revenue. ELP revenue in North America ramped up by 3.5% to $555.6 million. Higher sales in the U.S. offset a decline in Canadian market, where the transition to a new third-party logistic vendor resulted in logistic issues. This ended up with a reduction in shipment of VTech and LeapFrog products.
During the period, the group maintained its position as the number one manufacturer of electronic learning toys from infancy through toddler and preschool in the U.S. In Canada, despite the logistic issues, VTech remained the number one supplier in the infants, toddler, and preschool toys categories. The growth in ELPs came from higher sales of VTech and LeapFrog-branded standalone products. At VTech, the sales increase came primarily from three product categories: infants, toddler, and preschool products. The increases were driven by higher sales of new products, including soft and recycled ride-on trucks. KidiZoom camera again performed well, with especially good results from KidiZoom PrintCam and KidiZoom Creator Cam. Switch & Go Dinos achieved growth as a result of new product launches. The introduction of Marble Rush also added incremental revenue. Those increases offset declines in Kidi Line and Go! Go! Smart Friends family of products, as well as Go! Go! Cory
Carson, Critters, and Playsets. LeapFrog saw growth in infants and toddler products. The rollout of the new LeapLand Adventures TV video game also contributed to the sales growth. This success offset a decline in preschool products, as sales of licensed product fell. Platform products report sale declined, as higher sales of LeapFrog branded product were insufficient to offset lower sales of VTech branded products. LeapFrog benefited from growth in Magic Adventures Globe and Interactive Reading System. The content of Magic Adventures Globe was expanded. LeapReader was also refreshed with new hardware. This compensated for a decline in sales of children's educational tablets that was mainly due to the semiconductor shortages, which also led to slowdown in new LeapFrog Academy acquisitions. VTech platform product trended lower due to sale declines for KidiZoom smartwatches and KidiBuzz.
Shipment of the new products, namely, KidiBuzz 3 and KidiZoom Smartwatch DX3, was held up by semiconductor shortages and shipment delay. Low channel inventory also led to lower sales. This offset for the Touch & Learn Activity Desk, to which a new model was added, the financial year 2022. Telecom products revenue in North America went up by 1.6% to $274.9 million. The increase came as a gain for commercial phones and other telecom products offset lower sales of residential phones. Sales to online channel continued to see good increases. Sales of commercial phones and other telecommunication products increased as business activity returned to normal following the relaxation of COVID-19 restrictions. Well-received new product by the market also drove growth. Baby monitors, headsets, Snom brand SIP phones, and hotel phones all achieved higher sales.
The growth in baby monitors were driven by additional placement in key retailers, expanded online sales, and new product launches. As a result, VTech strengthens its position as the largest baby monitor manufacturer in U.S. and Canada. During the financial year 2022, the first LeapFrog branded baby monitor, featuring a baby care app, was launched to a positive market reception. Headsets was benefited by the increased order from an existing customer. The Snom brand SIP phone gained market share due to stable supply of products. Sales of hotel phone recovered as a result of lifting of COVID-19 restriction. The launch of model with a new industrial design further support growth. Although the residential phones market returned to its down trend, VTech maintained its leadership position in the U.S. residential phones market. CMS revenue in North America increased by 26.8% to $238 million, with growth in most product categories.
Business activity resumed as social distance measure eased. There was also a full year sale contribution from the operation in Tecate, Mexico, following the completion of the acquisition in April 2021. Professional audio equipment benefited from higher sales to a customer that have acquired a new business. The reduction of social distancing measure lifted sale of professional audio equipment used in concert hall, lecture theaters, and churches. Sales of solid-state lighting grew as tenders and project-based activity resumed Industrial products also benefited from the resumption of business activity, resulting in more orders for print circuit board assembly for coin and note recognition machines. Medical and health products saw sales increase as orders for hearing aids improved. Sales of communication products rose as increased orders for VoIP phones for commercial use following the successful relaunch of product by a customer. Now let's turn to Europe.
Group revenue in Europe declined by 5.6% to $1,025.1 million in fiscal year 2022, as higher sales of ELPs were offset by lower sales of telecommunication products and CMS. Europe was the group's second-largest market, representing 43.2% of group revenue. ELP revenue in Europe increased by 6.8% to $375.1 million, with sales picking up in the second half as new products arrived on the shelf and channel inventory improved. Standalone products saw higher sales for the full fiscal year, but platform products posted a decline due to material shortages. Geographically, sales increased in France, Germany, Spain, and the Netherlands, while the U.K. recorded a sales decline. In calendar year 2021, VTech maintained the number one infant toddler toys manufacturer in France, the U.K., Germany, and the Benelux countries. During the period, VTech regained the number one position in Spain. In standalone products, both VTech and LeapFrog brand product registered growth.
For the VTech brand, sales of infant, toddler, and preschool products, the KidiZoom camera ranges, KidiLife products, Switch & Go Dino, and electronic learning aids were all higher. Growth in the region was aided by the successful launch of the new Marble Rush line. These increases offset declines in Tut Tut Family of products and Tut Tut Cory Carson vehicles and playset. The LeapFrog brand saw growth in infants, toddler, and preschool products, underpinned by the launch of LeapLand Adventures. Platform products saw lower sales of both VTech and LeapFrog products. Material shortages and logistic problems resulted in late availability of certain new products and low channel inventory. This included a new generation of Interactive Reading System, LeapStart or MagiBook as it is called in Europe, KidiCom Advance 3.0, Magic Adventures Globe, KidiCom Max, and children's educational tablets.
These declines offset gains for Touch & Learn Activity Desk. Sales of KidiZoom smartwatches were stable. Revenue from telecommunication products in Europe fell by 14.2% to $93.8 million. Lower sales of residential phones and other telecommunication products offset higher sales of commercial phones. In Europe, the group residential phones are sold mainly on an ODM basis. These products were affected by the shortage of semiconductor, which resulted in the deferral of shipment and a reduction in sales. In a notable development, however, the group successfully launched its VTech-branded DECT phone on a major e-tailer in the U.K. in March 2022, paving the way for the increasing penetration of its own branded phones product in European market. Sales of other telecommunication products decreased as the semiconductor shortages negatively impacted the production of baby monitors, Kidi audio headsets, landline residential phones, and integrated access device, all which saw sales decline.
Despite the reduction in sales, VTech brand baby monitor strengthened their position in the U.K. with the successful introduction of a new product lineup. This further expanded the group market presence in Europe. Commercial phone benefited from resumption of the business activity and leisure travel as COVID-19 restriction eased across the region. As a result, we saw rising sales of Snom branded SIP phone and a recovery in sales of hotel phones. CMS revenue in Europe fell by 11.1% to $556.2 million. Hearables recorded lower sale due to material shortages and reduced the order for Bluetooth mobile headsets. Driven by higher order for audio mixers, sales of professional audio equipment increased. IoT products growth as a smart meter installation resumed in the U.K. following the relaxation of the social distance measures in the country.
Sales of internet connected thermostats and air conditioning control increased as demands recover. Growth in medical and health product was driven by increased order of hearing aids, while sales of health and beauty products were stable. Home appliance sales increased slightly, supported by the increasing order for smart electrical, electric vehicle chargers. Automotive-related product reported growth. In contrast, sales of communication product were down due to lower order for Wi-Fi router. During the year, the group added a new customer in the category of smart energy management system. I will now turn over to King for remaining regions and outlook.
Thank you, Andy. Good afternoon, ladies and gentlemen. I will continue our operations review of Asia Pacific. Group revenue in Asia Pacific decreased by 5% to $255 million in the financial year 2022. Lower sales of telecommunication products and CMS offset growth in ELPs. Asia Pacific represented 10.8% of group revenue. ELP's revenue in Asia Pacific increased by 2.3% to $83.9 million. Growth in Australia and Japan offset lower sales in mainland China. In the second half of the financial year, lockdowns eased and retail stores reopened in Australia, driving sales growth. For the calendar year 2021, we maintained our position in Australia as the number one manufacturer for infant and toddler toys. Growth in Japan came from rising sales to a major toy retailer, as well as good sell-through of a jointly developed smartwatch that features popular Japanese IP characters.
In mainland China, sales in both online and offline channels decreased. Despite these setbacks, we did achieve successes for the new range of Switch & Go Dinos based on the popular animated series, Mini Force, as well as the Magic Adventures Globe, which features enhanced contents for the China market. Revenue for telecommunication products in Asia Pacific decreased by 12.6% to $27.7 million. Higher sales in Australia were offset by lower sales in Japan and Hong Kong. In Australia, growth was led by higher sales of baby monitors. This compensated for sales decline in residential phones. In Japan, sales decreased owing to a shortage of semiconductors for an existing customer of residential phones. Sales in Hong Kong trended lower. Orders for integrated access devices dropped despite the launch of a new home gateway that supports Wi-Fi 6 and features a changeable faceplate.
CMS revenue in Asia Pacific declined by 7.3% to $143.4 million. Lower sales of professional audio equipment offset growth in medical and health products and communication products. Following a movement control order ordered by the Malaysian government to curb the spread of COVID-19, the group's Malaysian facilities were closed for a total of 75 days during the financial year 2022. This resulted in lower sales of DJ equipment, in turn, driving a decline in the professional audio equipment category. Furthermore, over-inventory at a customer resulted in lower orders for USB streaming microphones for online key opinion leaders. In contrast, sales grew for medical and health products. Orders increased for diagnostic ultrasound systems as hospitals rebalanced budgets away from COVID-19 related equipment purchases. As business activities recovered, higher demands were seen for hearables. Sales of communication products grew.
This was driven by higher orders for marine radios that followed the launch of a new generation of products by the customer. Other regions comprises Latin America, the Middle East, and Africa. Group revenue in other regions fell by 2.7% to $21.9 million in the financial year 2022. The decrease came as lower sales of telecommunication products and CMS offset growth in ELPs. Other regions accounted for 0.9% of group revenue. ELP's revenue in other regions increased by 29.8% to $10.9 million. Higher sales in Latin America offset declines in the Middle East and Africa. Telecommunication products revenue in other regions fell by 21% to $10.9 million. The decline was attributable to sales decreases in Latin America and the Middle East, offsetting growth in Africa.
CMS revenue in other regions was $0.1 million as compared to $0.3 million in the previous financial year. Before we get into the outlook for the financial year 2023, I would like to talk briefly about sustainability. Throughout our 46 years of excellence in technological innovation, we have maintained our strong commitment to building a sustainable future to improve the lives of people and for future generations. Our efforts include sustainable designs for products and packaging, climate change initiatives, and provision for a safe and inclusive workplace for our employees, as well as ethical sourcing practices throughout our supply chain. Despite the ongoing challenges brought by the COVID-19 pandemic, VTech continues to make progress towards a circular economy. Last year, we introduced our first range of green ELPs that utilize plant-based plastic, reclaimed plastic, and FSC-certified wood.
Later this year, we will launch two new plush ELPs with fabric utilizing recycled PET bottles, as well as additional eco-friendly toys with plant-based plastic and FSC-certified wood. Next, our outlook for the financial year 2023. Foremost, let's recognize that significant uncertainty lies ahead for our financial year 2023. On the demand side, heightened inflation in both the U.S. and Europe may lead to a slowdown in consumer spending. The recent increased spread of COVID-19 in mainland China and the subsequent lockdowns will negatively impact domestic consumption. On the cost side, material prices remain elevated, and this is especially true for plastic materials, which has been stoked by the oil price surge following the war in Ukraine. Supply of semiconductors and other critical components remains tight. Lockdowns in mainland China have also exacerbated global supply chain disruptions.
Finally, despite some improvement in container availability, freight cost is expected to rise further. Despite all these uncertainties, we are cautiously optimistic of achieving overall top-line growth in the financial year 2023. Direct impact of the war in Ukraine to group revenue will be minimal. Our sales with Ukraine and Russia represented a mere 0.2% in the financial year 2022. Gross profit margin, meanwhile, is expected to be largely stable year-on-year. Among the anticipated headwinds are freight cost, material price, as well as critical component shortages. The group is prepared to confront these challenges. We have increased our material inventory to meet the strong orders on hand. By advancing production and shipment schedules, we will also ensure new products can reach customers on time, minimizing channel inventory issues. ELP revenue is focused to post modest growth in the financial year 2023.
This will be driven by strong product offerings, on-time delivery of products, improved channel inventory, as well as strong advertising and promotion campaigns. Infant, Toddler, and Preschool products will continue its positive momentum with a strong portfolio of core learning and licensed products. Our expanded new 2022 spring offerings have already hit retailer shelves with good initial sell-through. This will be followed by strong autumn launches, including, notably, the Magic Adventures Microscope. Through its custom BBC videos and images, the microscope stimulates and enables the exploration of interesting facts related to flowers, insects, the human body, and more. Subscription to LeapFrog Academy is expected to return to growth as the supply of LeapFrog tablets improves. It is augmented by contents targeting older age groups. In mainland China, however, sales are expected to decrease as lockdowns in major cities are negatively impacting both offline and online channels.
Telecommunication products is expected to achieve higher revenue. This will be driven by increased sales of commercial phones and other telecommunication products, augmented by the recovery of VTech-branded residential phones in the U.S. and expansions in Europe. The continued good momentum of commercial phones and other telecommunication products will be fueled by a wide array of new products. The baby monitors category will be strengthened by the expansion of the LeapFrog range and a series of VTech-branded baby monitors with artificial intelligence, AI, detection features. In commercial phones, the D8 series of advanced Snom SIP desk sets, along with a new range of the multi-cell SIP DECT mobility system, will be rolled out globally. A work from anywhere series with Bluetooth conference speaker, audio recording function, and a professional headset will be launched in the third quarter of the financial year 2023.
Vtech hospitality phones will be revamped with a new series that features a contemporary design. CMS is also expected to return to growth, supported by a strong order book. Benefiting from global economy recoveries and a very sizable backlog of orders, most product categories are forecast to grow. The exception will be Hearables. It is expected to decline further on lower demand for mobile headsets. With its complete product line entering full production, significant business contribution to the financial year 2023 is expected from the new smart energy management systems. Further growth is expected from the NPI center in Shenzhen, while the Mexican facility will ramp up production and begin to build up its EMS capability. As ongoing material shortages may constrain Vtech's ability to meet all orders on time, the group is working closely with customers and suppliers to secure a high level of mutual support during critical conditions.
Thank you. This completes our presentation. We are now glad to answer your questions.
Thank you, Mr. Pang. We will now begin the Q&A session. Please tap raise hand button if you wish to ask a question. The raise hand button is located at the bottom of your screen inside the reaction button. The first question come from Eric from Citigroup. Eric, please go ahead.
Hey. Hi. Good afternoon, Chairman and senior management. Thank you for the presentation. Firstly, about the tariff. If U.S. remove all the tariff, can you remind us how does this benefit to your company, and what percentage of your tariff fee versus the sales in FY 2022? That's number one question. Then, my second question is I found all the fee segment, you expect a positive growth for FY 2023. But if you rank them, how do you rank them and why you have conviction, a higher conviction, for the strongest growth segment? Thank you.
Maybe let me answer your question. Eric, thank you for your question. As far as the tariff concern, the existing tariff affect us directly and indirectly. Directly affecting our own products
Relate only to a small segment of products in the telephone segments. So it's not a huge impact as far as our own product is concerned, if the tariff is removed. However, it does affect a lot of our CMS customers. Although the CMS customers increase in tariffs doesn't affect us because we sell mostly on FOB basis. So we are not responsible for the tariff. But nonetheless, it would affect indirectly, possibly their price to their end users that may in turn affect, to some extent, the sales. So removing the tariff will certainly benefit overall our sales, but possibly not to a huge extent. The second question is, yes, we are confident that all three of our business units will grow.
As to your question, why we are so confident, I think the incoming orders at this point, the forecasts and also the new product introduction in our two business, two ELPs and the telephone units, already show there are growth. The growth is, although not huge, but I think there is enough margin that we are safe to say that it can achieve growth. I think the same applies to the CMS, unless, of course, our business unit heads can actually add in on this, if you want to add any other colors to this. We do have strong orders, but we all know that the economy is kind of flaky right now. So there is a lot of uncertainty, which is really what underlies our outlooks.
Eric, is that good? Okay.
Yeah. Can I have a follow-up question?
In the past, for the CMS segment, you always expect to double the sales in three years, i.e., over 20% a year. So what kind of the growth rate you expect for CMS? I mean, single digit or double digit for FY 2023?
I will let Andy answer this question.
Did we say we are good? Yes, sir, for the fiscal year 2023, we project a high digit growth for CMS. The major reason for the growth is, first, one of our key major product category, the professional audio. They will be more benefited from the removal of the social distance restriction. This is one of the major reasons. The second reason is, we still maintain a pretty high backlog order along our customer orders. That is the reason why we expect that we will have a high single-digit growth in the fiscal year 2023.
Thank you, Eric, for the question. The second question comes from Lutz Kihm of GCIS. Lutz, please go ahead.
Yes. First of all, thank you, and congratulations to strong results. Three questions. One is the eco products in toys. How is the market acceptance? What is the price difference to traditional products? Now with the increase in plastic prices, how do you expect this price difference to develop? The second question is, generally, do you expect to be able to fulfill all your orders or do you still see a risk of not fulfilling the orders on hand? Thirdly, on LeapFrog, from your announcement, I understand that there has not been growth or maybe even decline in LeapFrog Academy. By how much has this How much percentage has been the decline? Could you give us an idea of the number of subscribers?
Lutz's favorite annual question. To tell you the truth, I actually have not looked at it lately. We're still in six figures.
Last year, you asked what is the six figures. My answer was it was a higher six figure compared to the previous financial year. I'm afraid this year my answer is going to have to be a lower six figure compared to fiscal 2022. Let me add some color to why we are quite confident that we will be able to grow subscriber this year. The main reason why LFA subscriber declined in fiscal 2022 is the fact that we have not been able to ship all the LeapFrog Academy tablets that the market had demand for. The tablet is by far the most effective vehicle for us to recruit LFA subscribers. I'm glad, fingers crossed, that we believe that we have the major IC component supply issue that had plagued us last year behind us.
As far as I know, we can ship as many tablets as the market can absorb this year. We are very dedicated, and we have strong campaigns to drive as many tablets that we can sell as possible this year. This will be followed by, hopefully, a surge in LFA subscribership. I believe your second question is why we are confident in being able to Do we expect to be able to fulfill all our orders? As I reported in our outlook, we believe we are a lot better prepared. As you can see from our inventory, we have taken a higher material and component inventory in preparation. We have also advanced the manufacturing of a lot of our products. A great deal of them have already been shipped across the oceans to our destination countries.
In fact, the retailers, they have also learned, they are also taking their inventory one to two months earlier compared to last year. All this added together, we are guardedly optimistic. Your first question is on eco-friendly products. With, I believe, maybe one possible exception, they all sell fabulously well. We have a recycled truck, and that one sells especially well. Because we want to make a name on eco products, and because we want to encourage children to have the recognition of sustainability, so we have actually not marked up these products by a great deal. Despite, as you correctly pointed out, using the sustainable materials, our cost is a lot higher. We have, together with our other products, suitably adjusted the price of these products up, but not by a huge amount.
We expect our second-year sales to continue to be fabulous.
Lutz, your follow-up question, please.
Yes. On the eco products, could you just give us an idea of the percentage they make of total products?
We are talking about what, five or six products compared to, in the U.S., close to 200 SKUs. So although some of them are among our best sellers, the contribution is in the very low single digit.
Okay. Similar for the LeapFrog, please. I don't want to ask the same question every year. Could you just tell us the first number of your six-figure digit? Is this between one and five or between six and nine?
Between one and five.
Okay, good. Thank you.
Thank you, Lutz. Any more question for the management? The next question come from John Choi of Daiwa. John, please go ahead.
Yeah. Hi. Thank you. I just have two quick questions for this year. The first one that I wanted to understand a little bit more is, may I know what is the change in market share for the U.S. market in terms of the percentage? Did it go up or did it go down? I understand that the company is still number one in terms of the ELP products. So that's my first question. My second question now is that, as everyone is aware, the commodity prices, resin prices, everything are up very significantly. I read the slides just now where management has explained how they plan to go about in terms of making sure that adequate supply is maintained. May I also know what are some of the plans management have in terms of controlling costs and maintaining margin? Thank you.
Yeah. On market share, allow me to report it according to calendar year, because this is how NDP reports. Although in 2021, VTech and LeapFrog combined has a higher sell-through compared to 2020. I am sad to report that we actually lost a little bit of market share, but not a great deal. Control cost, Shereen. Maybe Shereen can answer the costs.
Okay. As we have mentioned earlier, regarding the commodity price increase, we have stocked up our raw materials starting from the second half of the last financial year, so that even though the price is still increasing, it will mitigate the impacts on the cost prices upon Vtech. At the same time, we also have increased our prices to the consumers. That's why part of the product costs can be passing on to the consumers. These kind of same risk mitigation measures have been in place and implemented since the second half of the last financial year.
Okay. Thank you.
Any further question? If not, we come to the end of today's webcast. Thank you for joining us. Thank you very much.
Thank you.
Thank you.