Electronics player V.S. Industry Berhad reportd its fourth quarter and full year financial results with the group registering a revenue of RM3.91 billion, which was marginally lower compared to RM4 billion a year ago.
The group adds the result was due to lower delivery of orders to key customers from labour and component shortages. Meanwhile, profit after tax and non-controlling interest stood at RM169.7 million versus RM245.4 million in the previous year.
This was predominantly owing to a one-off (non-cash) impairment on the investment in associate amounting to RM25.8 million, coupled with disposal loss on fixed assets as well as an impairment loss on property, plant, and equipment in China. Protracted disruption in the global supply chain which affected component supply affected profit margin too.
Managing Director of VS, Datuk S.Y. commnted that it had been a challenging year for us due to the lingering effects of the pandemic and demanding business operating landscape. Looking ahead,Datuk SY sees businesses globally to continue grappling with market uncertainties and a slew of issues such as inflationary pressures, rising interest rates as well as recession fears. Against this backdrop, consumer sentiments are ebbing with cautious spending likely to prevail.
For the current quarter under review, the Group’s revenue rose 6.7% year-on-year to RM1 billion from RM941.1 million in 4QFY21. On the other hand, 4QFY22 net profit was lower at RM34.6 million as compared to RM41.5 million in the previous year corresponding quarter. This was chiefly due to the aforementioned factors.
VS’ balance sheet remains healthy with net gearing 0.15x as at end-July 2022, backed by net assets per share of RM0.57 per share and gross cash holdings of RM278.6 million.
In line with its quarterly dividend payout practice, the Board has declared a fourth interim dividend of 0.4 sen per share for the quarter under review. It has also proposed a final dividend of 0.4 sen per share, subject to shareholders’ approval at the upcoming annual general meeting. Total dividend per share for the current financial year amounts to 2.0 sen, representing a 44.9% payout based of FY22 earnings per share of 4.45 sen. The Group has a dividend policy of 40% payout of net profit.
