VS Industry earnings fall 32% in 2Q, announces 0.3 sen dividend

KUALA LUMPUR (March 22): Forex losses and higher financing costs pulled VS Industry Bhd’s net profit down 31.76% to RM30.36 million in its second quarter ending Jan 31, 2023 (2QFY2023) from RM44.49 million a year ago.

According to a Bursa filing on Wednesday (March 22), its earnings per share fell to 0.79 sen from 1.17 sen in 2QFY2022.

Nevertheless, the group announced a second interim dividend of 0.3 sen, payable on April 28.

Last year, the group paid 0.4 sen per share to its shareholders on April 29, 2022.

Quarterly revenue, however, improved by 13.86% to RM1.15 billion in 2QFY2023 from RM1.01 billion on the back of higher sales orders from its key customers.

For its first six months (6MFY2023), its net profit increased 8.57% to RM91.07 million from RM83.88 million a year earlier (6MFY2022), and its revenue improved 23.23% to RM2.44 billion from RM1.98 billion.

Its better earnings for the period was due to better profitability with higher sales orders from existing key customers, offset by unfavourable foreign exchange in the current quarter under review.

For 6MFY2023, VS Industry declared a total of 0.8 sen in dividends, the same as in 6MFY2022.

“As we move forward, we anticipate there may potentially be an uptick in consumer demand in near future,” said managing director, Datuk SY Gan.

“As such, we remain positive about the future and are committed to delivering value to our shareholders and customers alike.”

“Overall, the board opines that the financial performance of the group for the remaining quarters to be satisfactory barring unforeseen circumstances.”

VS Industry closed one sen or 1.23% higher to 82 sen, giving it a market capitalisation of RM3.16 billion.