Good afternoon, ladies and gentlemen, and welcome to all of our viewers online. Today, VTech Holdings Limited is announcing its results for the six months ended 30th of September 2023. Let me introduce our management. Mr. King Pang, Executive Director and Group President. Mr. Allan Wong, Chairman and Group CEO. Mr. Andy Leung, Executive Director and CEO of Contract Manufacturing Services. Ms. Shereen Tong, Group Chief Financial Officer.
First of all, Ms. Tong will present the group financial performance. Next, Mr. Leung will talk about the group's performance 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 second half of this financial 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, Grace. Good afternoon, ladies and gentlemen, and all viewers online. First of all, I'm ready to share with you the financial highlights of the group for the six months ended 30 of September 2023, compared with the same period of the last year. As you see from the slide, the revenue of the group reduced by 2.1% to $1,114.9 million. The decrease in revenue was mainly driven by the decrease in revenue in North America, Europe, and other regions, which offset the higher sales in Asia Pacific. The gross profit of the group reduced by 1.2% to $325.5 million. Our gross profit margin, however, improved from 28.3% to 28.5%.
The increase in gross profit margin was mainly due to the decrease in freight charges and inventory provisions, as well as the lower direct labor cost and manufacturing overheads arising from the depreciation of the renminbi against the US dollar, and the reduction in number of workers compared with the same period of the last year.
These offset the negative impacts of the higher cost of materials as percentage of the group's revenue resulting from the change in product mix despite the decline in material prices, as well as the depreciation of the foreign currencies against the U.S. dollar. Our operating profit improved by 11.4% to $110.3 million. Our operating profit margin also increased from 8.5% to 9.7%. The improvement in both operating profit and operating profit margin was mainly due to the increase in gross profit margin and the reductions in the selling and distribution cost.
Our profit attributable to shareholders improved by 14.1% to $93.6 million, and our net profit margin also increased from 7% to 8.2%. As a result, our basic earning per share increased by 13.8% to $0.47 , and our board of directors has declared an interim dividend per share of $0.17 , same as the last financial year. Turning to the revenue by region, North America remained the largest market of the group, accounting for 42.9% of the group's revenue.
Our revenue in North America reduced by 7.7% to $489.4 million. The decrease in revenue was mainly due to the lower sales of our electronic learning products and telecom products, which offset the higher sales of our Contract Manufacturing Services. Our sales to European market reduced by 0.4% to $468.7 million.
It was mainly due to the lower sales of our electronic learning products and telecom products, which offset the higher sales of our Contract Manufacturing Services. In Asia Pacific region, our revenue rose by 12.7% to $171.5 million. It was mainly due to the higher sales of our Contract Manufacturing Services, which offset the lower sales of our electronic learning product and telecom products.
Other regions include Latin America, Middle East, and Africa. The group's revenue in other regions reduced by 3.4% to $11.3 million. The decrease in sales in other regions was mainly due to the lower sales of our telecom products, which offset the higher sales of our electronic learning products. Our stock balance as at 30th September 2023 reduced from $517 million to $422 million compared with the same period of the last year.
Our stock turnover days also reduced from 140 days to 120 days. The lower stock balance was mainly due to the decrease in raw materials and finished goods as the supply constraints had eased compared with the same period of the last year. Our trade debtors balance as at 30th September 2023 reduced from $487.4 million to $451.7 million compared with the same period of the last year. Our trade debtors turnover days also reduced from 62 days to 60 days. Our financial position remains strong. We are debt-free, and our net cash balance as at 30th of September 2023 was $108.5 million, an increase of $98.4 million compared with the same period of the last year.
The increase in net cash balance was mainly driven by the higher net cash generated from the operating activities, lower negative impact of unfavorable foreign currency exchange movements on the group's net assets, as well as the lower dividend payments compared with the same period of the last 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 and warm welcome to all of you. As usual, we will begin our review of operation by looking at costs. The group gross profit margin in the first six months of the financial year 2024 was 28.5%, as compared with 28.3% in the same period of last year. The improvement came as both freight costs and inventory provision fell.
Direct labor costs and manufacturing overheads also declined. These are the results of the depreciation of RMB against the U.S. dollar, increased automation, and a reduction in the factory workforce. These gains offset two negative factors. The first one is the cost of material as a percentage of group revenue growth, despite lower material prices following a change in product mix. The second one is the depreciation of major currencies against the U.S. dollar during the period also have a negative impact.
We will now look at how the group performed in each region. In North America, group revenue decreased by 7.7% to $489.4 million in the first six months of the financial year 2024. North America remained our largest market, accounting for 42.9% of the group revenue. Higher sales of CMS were offset by lower sales of ELPs and telecommunication products. ELP revenue in North America declined by 21.8% to $208.4 million.
The decrease was primarily driven by lower sales volume. The unfavorable year-on-year comparison is also due to the advancing of some customer shipment in the comparable period last year to compensate for logistic delays. During the first nine months of the calendar year 2023, the group maintained its position as the number one manufacturer of electronic learning toys from infancy through toddler and preschool in the U.S. and Canada.
Sales of standalone and platform products decreased for both the VTech and LeapFrog brands. In standalone products at VTech, growth in the Go! Go! Smart family of product, Switch & Go Dinos, and the KidiCom was insufficient to compensate for the decline in infants, toddler, and preschool product, the KidiZoom lines, Marble Rush, and the eco-friendly toys.
At LeapFrog, higher sales of eco-friendly toys were offset by lower sales of infants, toddler, and preschool products, LeapLand Adventures, and Magic Adventures Microscope. In platform products, lower sales of KidiZoom Smartwatches, Touch & Learn Activity Desk, and KidiBuzz led to an overall decrease in sales of VTech platform products. Sales of LeapFrog platform products also declined as children educational tablets, interactive reading system, and Magic Adventures Globe all decreased. Subscription revenue from LeapFrog Academy was also lower.
Telecommunication product revenue in North America fell by 16.1% to $103.9 million with decline for residential phone, commercial phone, and other telecommunication products. Sales of residential phone fell because the market contraction continues during the period. In addition, shelf space reduction at a major retailer in the U.S. resulted in lower sales of AT&T branded products.
During the period, the group maintained its leadership position in the residential phone market in the U.S. In commercial phones, higher sales of hotel phones and strong Snom branded SIP phones were insufficient to offset decline for headset and multi-line analog phones. For other telecommunication products, sales of the group popular range of baby monitor held steady. However, decreases in CareLine residential phones and IAD resulted in an overall sales decline for other telecommunication products.
In the first six months of the financial year 2024, we maintained our number one position in the baby monitors market in the U.S. and Canada. CMS revenue in North America grew by 26.4% to $177.1 million. As improved material supply enabled VTech to clear a backlog of orders from customers. Growth in professional audio equipment and IoT products offset declines in industrial product, solid-state lighting, and communication products.
As a result, VTech maintained a position at the world number one contract manufacturer of professional audio equipment in the calendar year 2022. Professional equipment saw higher sales of power amplifier, professional loudspeakers, and wireless microphones. In IoT products, a new customer in the field of smart home control system make a contribution. Industrial product sales were down as customer faced over-inventory. Solid-state lighting declined as market demand softened.
Sales of communication product also trended down as customer product reached the end of their product life cycle. We turn now to Europe. The group revenue in Europe decreased by 0.4% to $468.7 million in this first six months of the financial year 2024. Europe remained our second largest market, accounting for 41.1% of the group revenue.
Higher sales from CMS were insufficient to offset lower sales of ELP and telecommunication products. ELP revenue in Europe fell by 8.2% to $146.2 million. As in North America, the decrease was mainly due to the lower shipment to customer of both standalone and platform product, following the advancement of shipment in the corresponding periods of last year. Weaker sale and depreciation of EUR and GBP against the U.S. dollar during the period also contributed to the sale decline.
Geographically, sales in France, the U.K., Spain, and the Netherlands decreased, offsetting growth in Germany. In the first nine months of the calendar year 2023, VTech maintained the number one infants and toddler toys manufacturer in France, the U.K., Germany, and Benelux countries. We also regained our number one position as the largest infants and toys manufacturer in Spain.
In standalone products, both VTech and LeapFrog product reported sale declines. For VTech, higher sales of preschool product, electronic learning aids, Marble Rush, and eco-friendly product were offset by lower sales of infants and toddler products, KidiZoom camera, and the KidiZoom lines. For LeapFrog, Magic Adventures Microscope and eco-friendly toys saw sale increases. The launch of Magic Adventures Telescope added to the growth. These gains, however, were offset by decline in infants, toddler, and preschool product, as well as the LeapLand Adventures range.
In platform products, the VTech and LeapFrog brands both reported a decline. The decrease at VTech was largely due to lower sales of KidiZoom Smartwatches, children's educational tablets, and the KidiCom range. Sales of Touch & Learn Activity Desk held steady. For LeapFrog, lower sales of interactive reading system and Magic Adventures Globe resulted in the overall decrease. Revenue from telecommunication product in Europe decreased by 5.6% to $43.7 million. Residential phones, commercial phones, and other telecommunication product all saw declines.
For residential phone, sales of VTech branded phone growth as the group expanded into France and Italy. We also saw sales increase in the U.K. and Germany. The growth was, however, offset by lower shipment to ODM customer as they experienced over-inventory during the period. The decline in commercial phone was mainly due to lower sales of hotel phones and headsets.
Sales of strong Snom branded SIP phones held steady. For other telecommunication product, growth in baby monitors was insufficient to compensate for a drop in CareLine residential phone, CAT-iq headset, and IAD. CMS revenue in Europe rose by 5.3% to $278.8 million, mainly driven by the improvement in the supply of material. Higher sales of professional audio equipment, smart energy storage system, communication product, and medical and health product compensated for the decline in hearable, IoT product, and automotive products.
Professional audio equipment saw growth in audio mixer offset a decline for the home audio interface products. The group added a new customer in the professional audio equipment category of USB streaming microphone for the professional gaming market, with hardware and software designed in-house by VTech CMS. Smart energy storage system benefited from the production ramping up as material supply improved.
Communication product sales increased as the customer launched new Wi-Fi routers. Growth in medical and health products was driven by higher sales of hearing aids as physical activity continues to accelerate following the end of the pandemic. Sales of hearable declined and market demand returned to pandemic levels. IoT products saw a decrease as the smart meter customer returned to a more normal sales pattern following earlier market sales gain. Sales of interactive connected thermostats and air conditioning controls were stable. Automotive product sales fell, a customer for EV chargers lost market share as a result of increased competition and delayed product launch. Sales of home appliance remained stable. I will now turn over to King for the rest of the segment result and outlook.
Thank you, Andy. Good afternoon, ladies and gentlemen. Group revenue in Asia Pacific increased by 12.7% to $171 million in the first six months of the financial year 2024. The region represents 15% of group revenue. Higher sales of CMS offset lower sales of ELPs and telecommunication products. Revenue from ELPs in Asia Pacific decreased by 16.5% to $35 million.
Higher sales in mainland China were offset by declines in Australia and Japan. In mainland China, both online and offline channels posted sales increases. This was mainly driven by resumption of economic activities after the lifting of COVID restrictions. Sales in Australia decreased. Both VTech and LeapFrog-branded products reported declines. This was driven by slower consumer demands as induced by inflation and interest rate increases.
In Japan, sales declined owing to lower sell-through of the smartwatches we jointly developed with a Japanese partner, as well as sales decreases to a major toy retailer. Revenue of telecommunication products in Asia Pacific declined by 16.5% to $11.6 million. Lower sales in Japan and Hong Kong offset higher sales in Australia. In Japan, sales of residential phones were lower as an ODM customer reduced orders in response to over-inventory. In Hong Kong, lower sales of integrated access devices and residential phones resulted in an overall sales decrease.
In Australia, continued growth in baby monitors offset sales decline for residential phones. CMS revenue in Asia Pacific increased by 29.6% to $124.9 million. Growth in professional audio equipment offset declines in communication products. Sales of medical and health products were stable. Sales of professional audio equipment surged. Orders for DJ equipment grew significantly owing to improved material supply.
We also benefited from market share gains by the customer and its new product launches. In medical and health products, orders of diagnostic ultrasound systems held stable. Lower sales of communication products were due to decrease in orders for marine radios, which was driven by market share losses of a customer. Other regions comprises Latin America, the Middle East, and Africa.
Group revenue in other regions fell by 3.4% to $ 11.3 million. Higher sales of ELPs were offset by lower sales of telecommunication products. Other regions accounted for 1% of group revenue. ELP's revenue in other regions increased by 3.1% to $ 6.6 million. Higher sales in Latin America and the Middle East offset lower sales in Africa. Telecommunication products. Revenue in other regions declined by 11.3% to $ 4.7 million. Lower sales in Latin America and the Middle East offset growth in Africa.
CMS revenue in other regions was immaterial in this reporting period. Looking forward. First, a couple of words on the macro environment. On the negative side, the wars in Ukraine and the Middle East, as well as global economy uncertainties, are weighing on world markets. Energy costs are volatile. Interest rates in the U.S. and Europe are forecast to remain high.
Consequently, consumer spending and business investments are being curtailed. In markets outside the U.S., strong U.S. dollar continues to pressure retailers. On the positive side, supply and price pressure on raw materials and critical components, together with freight costs, have eased considerably in recent months. Therefore, overall, in view of this less favorable economic environment, we now expect group revenue for the full financial year to show a slight decline.
Profitability, on the other hand, remains on track to improve for the full year as material prices and freight charges have trended down year-on-year. To further bolster profitability, we are exercising heightened control in inventory and operating expenses. The above notwithstanding, to support good sell-through of our products, especially during the upcoming holidays, VTech will continue to commit resources and maintain keen attention to advertising and promotions.
For ELPs, full year revenue is now expected to decline even as second half sales are expected to improve over the first half. The retail environment continues to be laden with challenges. Faced with higher cost of living, price-sensitive consumers are keen on bargains and delaying holiday purchases. The reorganization of the U.S. operations is now complete and is starting to bear fruits towards enhancing our ELP business.
Among many operations improvements, our marketing spend is now much more targeted, driven by timely and quantitative sell-through data from the channels. Not only does this tight control benefit sales, it also ensures we have a healthy level of post-holiday inventory. As always, our constant stream of exciting new products is instrumental in driving sales. Sales of telecommunication products are now forecast to decline for the full financial year 2024. Residential phone sales in North America are expected to decrease for the full financial year. In Europe, the group will benefit from the expansion of VTech branded products into new markets. In commercial phones, new product launches and the addition of Snom as a distribution channel in Europe will drive growth in hotel phones.
Sales of Snom SIP phones are expected to be bolstered by the new M500 series, a DECT-based system that delivers superior mobility for medium-sized offices and businesses. For other telecommunication products, baby monitors will be the key driver. The new baby monitor with AI features is already on shelves in North America. It is being supported by a strong marketing campaign. Our CMS outperformed the global EMS market in the first half. Its revenue is now expected to increase for the full financial year.
This notwithstanding, sales in the second half are forecast to slow down as the weak global economy continues. Customers have turned cautious about placing orders and are managing inventory tightly. Nevertheless, continued good performance is expected from professional audio equipment, hearing aids, and smart energy storage systems. Orders from the new customer for smart home control systems will continue to ramp up. Thank you. This completes our presentation.