As tipped by ChannelNews, Vox International, the owners of Premium Audio Products and brands that include Klipsch, Onkyo, Integra and Pioneer, have reported a major slump in revenue in the last quarter ending November 2022 with sales falling over 25 per cent.
We recently revealed that management had been forced to take a 20 per cent pay cut across the boards.
Net sales in the Fiscal 2023 third quarter ended November 30, 2022, were US$143.1 million as compared to net sales of US$191.9 million in the Fiscal 2022 third quarter ended November 30, 2021, a decrease of US$48.8 million or 25.4 per cent.
Consumer Electronics sales via their Premium Audio Products division slumped 27 per cent with demand for their Klipsch products, that are primarily sold at Harvey Norman, slumping.
In the Fiscal 2023 third quarter consumer audio product sales were $94.1 million compared to $129.7 million compared to the same period last year.
This was a decrease of US$35.6 million
Even worse for the Company, whose business management and ethics have been questioned after they set up a Premium Audio Products subsidiary in Australia, was the massive fall in sales by this division.
The PAP division saw a decline of $34.4 million, with sales for the period of $73.5 million.
Other CE product sales were $20.6 million, a decline of $4.2 million.
The business said the poor sales were primarily attributable to lower domestic sales in the US of premium home theatre speakers and wireless speaker products.
Even Europe turned off the Company’s premium and non-premium speaker products and accessories, with EU declines attributed to a slowing of the global economy.
One bright note was that the Company experienced an increase in domestic sales of Onkyo and Pioneer related products of $9.4 million.
During the past nine months, consumer electronics sales in the Fiscal 2023 nine-month period were $271.1 million compared to $320.8 million in the comparable Fiscal 2022 nine-month period.
This represented a decline of $49.7 million or 15.5 per cent.
For the same comparable periods, Premium Audio product sales were $212.6 million as compared to $252.6 million, a decline of $40 million or 15.8%, and Other Consumer Electronics product sales were $58.4 million as compared to $68.2 million, a decline of $9.7 million or 14.3%.
Management claimed sales of Onkyo and Pioneer products have increased since the acquisition of the Japanese business, which analysts claim is not surprising as the Japanese business went bankrupt and prior to that did not have the money to manufacture products before Voxx International stepped in to buy the business.
Vox International management said there has been higher factory production of these products, and that prior to the acquisition, the Onkyo Home Entertainment parent company was unable to meet customer demand due to financial difficulty.
Management said, “Sales of premium audio products made by the Company’s PAC Australia subsidiary have also increased approximately $3,700 during the nine months ended November 30, 2022.
This entity is now selling Onkyo and Pioneer products and has benefited from the Company’s increased factory production since the September 2021 acquisition”.
Back in October, Premium Audio Products Australian Sales & Marketing Director, Peter Shamoon was bragging about “The success of the Australian business”.
There was no mention sales had only increased by US$3,700.
Shamoon summed it up with, “Our financial year runs from March to February and not only have we doubled any previous distributor’s targets, but with four months left of trade, we have already surpassed the numbers of last financial year thanks to all our business partners.”
The business is also facing problems in their Automotive Electronics division with sales for the quarter falling 21.2%.