Good afternoon, ladies and gentlemen, and welcome to all of our viewers online. Today, VTech Holdings Limited is announcing its results for the financial year end 31st March 2018. For your reference, the webcast of this announcement, accompanied by the presentation you will see shortly, will be available on VTech's website starting at 10:30 this evening, Hong Kong time. Here to present the results, on my left are 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, Ms. Tong will present the group's financial performance. Next, Mr. Leung will review the group's operations. Mr. Pang will then give the management's outlook for the coming year. We will finish our presentation with a Q&A session.
Now, may I invite Ms. Tong to open today's presentation. Ms. Tong, please.
Thank you, Goodwinner. Good afternoon, ladies and gentlemen and observers online. First of all, I would like to share with you the financial highlights of the group for the year end of 31st of March 2018, compared with the same period of the last year. As you see from the slide, the revenue of the group rose by 2.4% to $2.1301 billion. The increase in revenue was mainly driven by the higher sales in North America and Asia- Pacific, which offset the decrease in revenue in Europe and other regions. Our gross profit rose by 1.8% to $702 million. Our gross profit margin, however, reduced from 33.2% to 33%. The decrease in gross profit margin was mainly due to the higher cost of materials, which offset the positive currency impact and the productivity gains through our optimizations and process improvement during the financial year.
As for the direct labor cost and manufacturing overhead as percentage of the group's revenue, they were also lower than the same period of the last year. Our operating profit rose by 15.7% to $231.3 million, and our operating profit margin also increased from 9.6% to 10.9%. The increase in operating profit and operating profit margin was mainly due to the increase in gross profit and the reduction of the operating expenses as the restructuring cost arising from the integration of the LeapFrog were incurred in the same period of the last year. Our operating profit also include a gain on disposal of investment during the financial year 2018. Our profit attributable to shareholders rose by 15.3% to $206.3 million. And our net profit margin also increased from 8.6% to 9.7%. As a result, our basic earning per share increased by 15.1% to $0.821 .
Our board of directors has proposed a final dividend of $0.63, bringing the total dividend per share for the year to $0.80. Turning to the revenue by region, North America remains the largest market of the group, accounting for 48.9% of the group's revenue. Our sales in North America rose by 2.4% to $1.041 billion. The increase in revenue was mainly due to the higher sales of our electronic learning products and Contract Manufacturing Services, which offset the lower sales of our telecom products. Our sales to European market decreased by 2.2% to $849.1 million. It was mainly due to the decrease in sales of our Contract Manufacturing Services, which offset the higher sales of our electronic learning products and telecom products. In Asia- Pacific region, the revenue of the group rose by 32.6% to $197.1 million.
The increase in revenue was driven by the increase in sales of all our three product lines. Other regions include Latin America, Middle East, and Africa. The group's revenue in other regions reduced by 8.1% to $42.9 million. The decrease in sales in other region was mainly due to the lower sales of our telecom products, which offset the higher sales of our electronic learning products and Contract Manufacturing Services. Our stock balance as at March 31, 2018 increased from $324.9 million to $349.9 million, an increase of 7.7% comparable to same period last year. Our stock turnover days also increased from 96 days to 102 days.
The highest stock level was mainly due to the increase in our in-house productions after the acquisitions of LeapFrog and Snom, the reduction of shipment to Toys"R"Us, as well as the mitigation of the negative impact arising from the tight global supply of materials. We have also arranged early productions of the group's product in order to better utilize the group's production capacities. Our trade debtors balance as at 31st March, 2018 reduced from $275.4 million to $264.9 million. Our trade debtors turnover day increased slightly from 64 days to 65 days. The decrease in trade debtors balance was mainly due to our continuous efforts to tighten the debt collections and credit risk management. Our financial positions remains very strong. We were debt-free.
Our net cash balance as at 31st March, 2018 was $254.4 million, a decrease of 4.8% compared with the last financial year end date. The decrease in net cash balance was mainly due to the higher dividend payment compared with the same period of the last year. That's all of my presentation. I will now invite Mr. Andy Leung to share with you our operations review. Mr. Leung, please.
Thank you, Shereen. Looking first at the cost of our business. The gross profit margin of the group fell from 33.2% in the fiscal year 2017 to 33% in the fiscal year 2018. This was mainly due to the higher cost of material, which offset a positive currency impact and productivity gain. During the fiscal year, we successfully brought most of the product of LeapFrog and VTech in-house for manufacturing. The fiscal year 2018 was challenging for the group ELP business. Toys"R"Us, one of the group top five customer, filed for bankruptcy protection in the U.S. and Canada in September 2017, followed by the liquidation of its U.S. and U.K. business in the early of 2018. These developments result in a significant reduction of sales of the retailer, affecting growth in North America and Europe.
Our sales up to the day of bankruptcy protection filing were covered by credit insurance, and since then, we have exercised prudence and diligence in securing payment for goods supplied to Toys"R"Us. Consequently, no material bad debt was incurred as a result of the liquidation. Despite this challenge, we were able to grow our ELP revenue overall, boosted by strong performance in Asia-Pacific. Turning now to our operation, starting from the North America. Group revenue in North America increased by 2.4% to $1 billion and $41 million in the fiscal year 2018. As higher sales of ELPs and CMS offset lower sales of telecommunication products. North America was our largest market, accounting for 48.9% of the group's revenue. ELP business in North America rose by 0.7% to $458.2 million.
Growth was negatively impacted by the reduction of shipment to Toys"R"Us, following its filing for bankruptcy protection in September 2017. In the calendar year 2017, VTech maintained its position as the number one manufacturer of electronic learning toys from infant through toddler and preschool in the U.S. Sales of standalone products report flat. Sales of LeapFrog standalone product grew as we launched more new product under the brand. We saw success of this strategy in fiscal year 2018 with both infant and preschool product recording higher sales. Sales of VTech standalone product decreased mainly due to the weaker performance of the Go! Go! Smart family of the products. Sales of platform product were higher, driven by increased sales of VTech platform product, including the KidiZoom Smartwatch range, KidiBuzz, and Touch & Learn Activity Desk Deluxe.
Sales of LeapFrog platform product declined due to a decrease in sales of children educational tablet. Sales of LeapFrog reading system, including LeapStart and LeapReader, remained flat. In August last year, LeapFrog Academy was launched in the major English-speaking country, and subscription have been growing steadily. Telecommunication product revenue in the North America decreased by 10.6% to $327 million. Although sales of commercial phone and other telecommunication product continues to grow, this was insufficient to offset a further decline in sales of residential phones. Rising sales of commercial phones and other telecommunication products were driven mainly by higher sales of headset and voice-over IP phones. In headsets, the Bluetooth model specially designed for the professional trucker market maintained strong sales momentum. New VTech brand voice-over IP phone based on Snom technology platform helped to drive the sales increase.
Although sales of baby monitor declined due to customer order delay, the VTech brand range continues to gain market share. According to NPD, VTech is the number one baby monitor brand by dollar sales in the U.S. Both hotel phone and the VTech line of conference phone expansion saw steady growth. However, the drop in sales of residential phone reflect a higher-than-expected decline in the fixed-line telephone market. Nonetheless, VTech maintained its leadership position in the U.S. residential phone market. CMS revenue in North America rose by 30.8% to $255.8 million, with growth across the board. Professional audio recorded a significant sales increase. This was driven by strong demand for the new active speaker launched by an existing customer, as well as more orders from another customer, which have worked through excess inventory. The transfer of production to VTech by an existing customer explains the sales increase of solid-state lighting.
Industrial product benefited from new order for printed circuit board assembly for industrial printer, electronic lock, and log counting device. Sales of home appliance rose as the customer expanded its market share in the U.S. Sales of communication product declined, however, as the customer product line reached the end of its life cycle. Now turning to Europe. Group revenue in Europe fell by 2.2% to $ 849.1 million in the fiscal year 2018, as higher sales of ELP and telecommunication products were unable to offset lower sales of CMS. Europe maintained our second-largest market, accounting for 39.9% of group revenue. ELP revenue in Europe saw a 1.6% increase to $ 363.2 million, despite negative impact from Toys"R"Us. Geographically, Germany, Spain, and the Netherlands record growth, while France and the U.K. maintained stable sales.
In calendar 2017, VTech strengthened its position as the number one infant and toddler toys player in France, the U.K., Germany, and Spain. Stand-alone products achieved slightly higher sales, with LeapFrog stand-alone products posting growth. This was driven by new product launch, with both the infant and preschool category seeing increase. Sales of VTech stand-alone products were stable. Sales of infant and preschool product, KidiZoom camera, and the Kidi line were higher, compensating for the lower sales of Toot- Toot family of products and the KidiZoom Action Cam. Sales of Little Love line were steady. Platform product sale in Europe increased during the fiscal year 2018. Sales of VTech platform product were higher. The second generation KidiZoom Smartwatch DX continues to perform well, and the sale momentum was augmented by new Star Wars film, KidiZoom Smartwatches.
KidiCom MAX, the new version of DigiGo that was launched in October last year, also delivered good performance. Sales of LeapFrog platform product post growth as an updated version of LeapStart, which is called MagiBook under VTech brand outside U.K., was introduced in most of the major European country. This offset a decline in children educational tablet. Revenue from the telecommunication product in Europe increased by 2.9% to $ 132.7 million, as higher sales of commercial phone and other telecommunication product offset lower sales of residential phone. Growth in commercial phone and other telecommunication products was driven by full-year sales contribution from Snom, which recorded strong growth in its existing product lines. A new high-end voice-over IP phone from Snom began shipping to Europe in this January.
Featuring a high-resolution color display, 24 programmable keys, a USB port, and Bluetooth integration. This has been very well received by the market and add incrementally to the sales growth. Integrated access device, the IAD, achieved good growth as we add new customer. Sales of CAT-iq headset also grow and we increase promotion with our telecom operator customer. Baby monitor, hotel phone maintain stable sales. Residential phone saw sales decline as the fixed line telephone market continues to contract. CMS revenue in Europe fell by 7.4% to $ 353.2 million, mainly due to decline in sales of switching mode power supplies. Hearable, home appliance, and medical and health products all experienced sale decrease, offsetting growth in professional audio equipment, industrial, and communication products. Switching mode power supply were affected by change in ownership. Customer decided to move production in-house.
Sales of hearable fell as customer face keen competition in the headset market. Home appliance saw sale decline as the customer reduced orders. In medical and health product, growth in hearing aid was offset by decline in hair removal products. Professional audio equipment increased as order from two major customer increased, while industrial product continued to benefit from rising sales of smart meter for the U.K. market. Communication product also saw strong growth, driven by increased order for voice-over IP phone and the addition of a new customer for Wi-Fi routers. Group revenue in Asia-Pacific increased by 32.6% to $ 197.1 million in the fiscal year 2018, with higher sales in all three product lines. Asia-Pacific represented 9.2% of the group revenue. Revenue from ELP in the Asia-Pacific rose by 36.4% to $ 71.9 million. This was mainly coming from Australia and mainland China.
In Australia, increased marketing effort and expansion in shelf space contributed to higher sales of both VTech and LeapFrog branded products. Mainland China growth as the group continues to expand sales channel, step up marketing effort, and roll out new products. Tapping into the opportunity created by the relaxation of the country one-child policy, more infant product were launched, which generated significant higher sales of this category. The fifth generation of Switch & Go Dinos, which had been specifically designed for the Chinese market, was launched and sales were strong. Increased sales of LeapFrog brand product in other Asia-Pacific market also contribute to the overall growth. Telecom product revenue in Asia-Pacific increased by 16.0% to $44.2 million. We have growth in Japan, Hong Kong, and Korea.
In Japan, VTech increased sales of cordless telephone to existing customers, while in Hong Kong, we supply telecommunication product device into a leading local broadband service provider, driving sales of integrated access device and CAT-iq headsets. During the fiscal year, we began shipping cordless telephone and voice-over IP phone to a new customer in South Korea, driving a sales increase in the country. Sales in Australia saw decline despite increased sales of baby monitor, which were insufficient to offset lower sales of residential phone. CMS revenue in Asia-Pacific grew by 40.1% to $ 81 million. The growth was mainly generated by full-year sales contribution from the high precision metal parts business, together with higher sales in most product categories. VTech technical know-how in miniaturization have established us in the field of hearable, and order of this product category rose significantly.
Marine radio benefited from more order for a new digital version, supporting higher sales of communication product. Further growth in order for diagnostic ultrasonic system from a Japanese customer accounted for the increase in sales of the medical and health product. Sales of solid-state lighting and home appliance, however, recorded declines as customer faced keen competition. Group revenue in other regions, namely Latin America, the Middle East, and Africa, fell by 8.1% to $42.9 million in the fiscal year 2018. Lower sales of telecommunication products offset higher sales of ELP and CMS. Other regions accounted for 2% of the group revenue. ELP revenue in other region increased by 5.3% to $14 million, as higher sales in Middle East and Latin America compensated for lower sales in Africa. Telecommunication product revenue in other region declined by 14.7% to $27.8 million.
The decline was due to lower sales in Latin America and Middle East, offsetting a small growth in Africa. CMS in other region was $1.1 million in the fiscal year 2018 compared to $0.8 million in the previous fiscal year. That concluded my part of presentation. Thank you very much. I will now hand over to King for the outlook. King, please.
Thank you, Andy. Good afternoon, ladies and gentlemen. For our financial year 2019 outlook, we start with group revenue. Group revenue is expected to rise in this financial year. Telecommunication products are expected to return to growth, while CMS sales are forecast to increase. ELP revenues are more difficult to gauge. In the short run, sales in North America and Europe will be negatively impacted by the liquidation of Toys"R"Us. The financial year 2019 is again full of challenges. Raw material and direct labor costs will be higher. Global material supply will remain tight. The uncertainty over ELP sales and foreign currency exchange rate movements makes it difficult to predict the trend in gross margin. Compounding these challenges is the trade conflict between the U.S. and mainland China. So far, the announced list of products targeted for punitive U.S. tariffs does not include VTech product categories.
However, further deterioration of the Sino-U.S. trade relationship may negatively affect the group's results. Turning now to ELPs. ELP's revenue in the financial year 2019 will be affected by the Toys"R"Us liquidation. Looking further out, we believe the bulk of the lost sales will eventually be taken up by existing customers. Therefore, the longer term prospects for the group's ELPs remain positive. Across our markets, new product launches are expected to further strengthen our market position. Starting with standalone products. Expansion will continue for the VTech baby, infant, and preschool lines. Likewise, for LeapFrog-branded learning toys. In platform products, KidiZoom Smartwatch DX2, launched last year in the U.S., will be rolled out to most European markets in the financial year. Additionally, LeapStart 3D will be launched in the U.S. and the U.K.
This new LeapFrog interactive learning system features a 3D-like holographic display and offers touch and talk games. The LeapStart Library will also be expanded with new titles, and to take advantage of the new hardware features. In Asia- Pacific, growth is expected to remain robust. Telecommunication products. Revenue of telecommunication products is forecast to return to growth. Sales increase of commercial phones and other telecommunication products, it is expected to more than compensate for further decline in residential phones. Commercial phones and headsets will lead the way. The latest VTech and Snom voice-over IP phones have been extremely well-received. The good momentum in headsets will continue, supported by new product launches and geographic expansion to Europe and Australia. In baby monitors, we will continue to drive innovation in our successful line by introducing products that offer new features. Sales of CAT-iq handsets will also increase.
New products are slated for June launch in Germany. Product shipment to a U.K. telecoms operator is also expected to commence in the third quarter of this financial year. In contrast, sales of residential phones will decline further as the fixed line telephone market continues to contract. Contract Manufacturing Services. Our CMS is poised for further growth. Sales will increase across the board, driven by the business expansion of our existing customers, as well as by additional business gained through our increased capability to provide design support to customers. Finally, and significantly, as has been announced, we signed an agreement with Pioneer Corporation last month. Under this agreement, we will acquire a manufacturing facility in Malaysia owned by Pioneer Technology (Malaysia), a subsidiary of the Japanese company. This acquisition includes both the fixed assets and the business in manufacturing high-performance audio equipment for DJs, producers, and artists.
The acquisition will strengthen CMS leading position as a manufacturer of professional audio equipment. It will also expand our global footprint, enhancing CMS ability to meet future customer demands. The acquired facilities, together with the opening of a new factory building in our current manufacturing facilities in Dongguan, mainland China, will add almost 50% to the production capacity of CMS. Thank you. This concludes our presentation.