VS 6963 V.S. INDUSTRY BERHAD sees 1Q net profit jump 54% to RM60.7m, declares 0.5 sen dividend

 VS 6963 V.S. INDUSTRY BERHAD sees 1Q net profit jump 54% to RM60.7m, declares 0.5 sen dividend

KUALA LUMPUR (Dec 16): VS Industry Bhd's net profit for the first quarter ended Oct 31, 2022 jumped 54% to RM60.71 million, from RM39.39 million a year earlier, due mainly to higher sales orders from existing key customers.

In a bourse filing on Friday (Dec 16), VS Industry said revenue for the quarter rose 33.7% to RM1.29 billion from RM967.99 million previously.

Earnings per share stood at 1.58 sen versus 1.03 sen previously.

The company also declared an interim dividend of 0.5 sen to be paid on March 3, 2023.

Reviewing its performance, VS Industry said the Malaysian segment posted a 62.1% increase in revenue for the quarter due to higher sales orders from key customers.

Meanwhile, the company said its Singapore segment, which acts as the marketing arm of its Malaysian operations, recorded a lower profit before tax of RM1.1 million for the quarter under review, from a profit before tax of RM1.6 million last year, mainly due to lower sales orders from a key customer.

The Indonesian segment recorded a higher profit before tax of RM4.8 million for the quarter under review, in tandem with an increase in sales orders from a key customer.

Meanwhile, the company said losses in China narrowed to RM2.8 million, from RM3.2 million a year ago.

It said the operating environment remained highly challenging, and in the absence of large orders, its low revenue base was insufficient to cover fixed cost.

On its prospects, VS Industry said challenges are abound for the current financial year.

It said global macroeconomic issues, such as rising inflation and interest rates, had led to rising cost of living, and in turn affected consumer sentiment and purchasing power.

“At this juncture, however, the order flow from customers remains satisfactory.

“Barring unforeseen circumstances, the board opines that the financial performance of the group for the remaining quarters will be satisfactory,” it said.

At the midday break on Friday, VS Industry had shed 0.53% or half a sen to 93 sen a share, with 1.41 million shares done.

http://www.theedgemarkets.com/article/vs-industry-sees-1q-net-profit-jump-54-rm607m-declares-05-sen-dividend