Versalink has reversed into a profit of RM1.96 million ($602,125) for the 1HFY2023 ended Aug 31 from the RM2.02 million loss in the same period the year before.
Earnings per share (EPS) for the 1HFY2023 stood at 1.45 sen, up from the 1.49 sen loss per share in the 1HFY2022.
Revenue for the half-year period increased by 76.8% y-o-y to RM24.0 million due to higher revenue contributions from the company’s export and domestic segments. The higher revenues from both segments were attributable to the resumption of the company’s production in full after the Malaysian government announced that the country will be entering into the endemic phase from April 1.
The export segment saw revenue increase by 74.7% y-o-y to RM18.7 million while the domestic segment saw revenue increase by 84.3% y-o-y to RM5.3 million.
Cost of sales increased by 57.8% y-o-y to RM17.3 million in line with the higher revenue.
Gross profit surged 2.6 times higher to RM6.8 million from RM2.6 million in the same period before. Gross profit margin (GPM) improved by 8.7 percentage points y-o-y to 28.1% due to the reduction of labour cost at 13.2% of export revenue, down from 19.0% in the 1HFY2022. The higher GPM was also due to the reduction of production overheads at 9.2% of export revenue down from the previous year’s 14.0%.
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Other income and gains also surged three times to RM357,000 from RM119,000 before mainly due to a foreign exchange (forex) gain of approximately RM0.31 million.
Other losses narrowed significantly to RM7,000 from RM701,000 in the same period the year before. This was mainly due to absence of an allowance for impairment on trade receivables of approximately RM0.70 million; and the depreciation of right-of-use assets of approximately RM0.03 million.
As at Aug 31, cash and cash equivalents stood at RM12.4 million.
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No dividends were declared for the period.
Shares in Versalink closed 3 cents higher or 37.04% up at 11.1 cents on Oct 13.
