V.S Industry has announced its second quarter and first half financial results today for the period ended 31 January 2026.
The Group reported a revenue of RM1.85 billion in 1HFY26 versus RM2.02 billion a year ago. Meanwhile, profit after tax and non-controlling interest for the current period under review came in at RM1.0 million, compared to RM46.0 million in the prior year. The performance was largely impacted by lower orders from key customers arising from soft consumer sentiments globally, which in turn affected the overall utilisation rate of production capacity. This was compounded by cost optimisation initiatives from customers as well as losses from the initial startup operations in the Philippines.
For the current quarter under review, revenue stood at RM769.5 million vis-à-vis RM908.8 million last year. The Group posted a net loss of RM29.6 million in 2QFY26 versus a net profit of RM15.4 million last year. This was chiefly attributed to the aforementioned factors.
Managing Director of VS, Datuk S.Y. Gan said, “The operating environment turned out to be very challenging in the current financial year. Just as the reciprocal tariff situation appeared to be stabilising following the earlier imposition of a fixed rate for Malaysia, subsequent court rulings in the United States have resulted in revised tariff rates, which, despite being lower, have once again clouded the trade outlook and introduced fresh uncertainties for export-oriented manufacturers. This has made planning and order visibility more difficult, as customers reassess their sourcing and procurement strategies.”
“Compounding this is the weak consumer sentiment and spending globally, which have dampened demand for consumer electronics, a key end-market for the Group. The situation is further aggravated by the recent escalation of geopolitical tensions in the Middle East, where conflicts involving Iran and Gulf countries have heightened global risk aversion and added to supply chain uncertainties. Meanwhile, the strengthening of the Ringgit against the US Dollar is unfavourable on the Group’s financial performance as well.”
The Board anticipates the Group’s performance for the current financial year to be lower than the preceding year.
