PETALING JAYA: V S Industry Bhd says its newly hired batch of foreign workers, with more to arrive in the coming months, will help the electronics manufacturing services (EMS) provider improve its performance after a decline in the third quarter ended April 30, 2022 (3Q22).
This recruitment is crucial for the integrated EMS provider to counter its decreasing levels of order deliveries due to an industry-wide labour shortage, which was one of the main reasons for its decline in earnings this year, the company stated in a statement yesterday.
For 3Q22, the company saw a 14% year-on-year (y-o-y) drop in revenue to RM927.6mil as compared with RM1.07bil in 3Q21 due to lower orders fulfilled as a result of insufficient workers. Net profit slumped 30% to RM51.2mil versus RM73.4mil in the same period last year.
The company declared a 0.4 sen dividend per share, payable on July 29, 2022.
Earnings for the nine months (9M22) amounted to RM135.2mil or an earnings per share (EPS) of 3.54 sen as compared to earnings of RM203.8mil or an EPS of 5.43 sen in 9M21. Revenue for 9M22 amounted to RM2.91bil versus RM3.1bil in 9M21.
According to its filing with Bursa Malaysia, V S Industry’s total liabilities at the end of April totalled RM1.6bil, which was about 5% higher than the previous year. Its current liabilities stood at RM1.2bil this year, an increase of 4% from the same period last year.
V S Industry’s managing director Datuk Gan Sem Yam said the company was grappling with challenges brought on by the Russia-Ukraine war such as inflation, increasing labour and material costs and disruption to supply chain and logistics.
V S Industry shares closed the trading day up 2.5 sen to RM1.02 on the release of the results.