KUALA LUMPUR (June 16): VS Industry Bhd’s (KL:VS) net profit for the third quarter fell 56.33% year-on-year, dragged by lower sales orders from its customers.

Net profit for the three months ended April 30, 2025 (3QFY2025) dropped to RM23.77 million from RM54.42 million a year earlier, while revenue fell 10% to RM909.42 million from RM1.01 billion, VS Industry's bourse filing on Wednesday showed.

Finance costs rose 17% year-on-year to RM10.66 million, while operating expenses eased 2.67% to RM33.45 million. The group also recorded a lower net foreign exchange loss of RM550,000, compared to RM6.93 million previously.

The electronic manufacturing services provider declared a share dividend through distribution of treasury shares on the basis one treasury share for every 125 existing ordinary shares held. The ex-date is set for June 26, with the entitlement date on June 30.

For the first nine months of FY2025, the group's net profit dropped 41.59% to RM69.75 million from RM119.41 million, while revenue dipped 3.48% to RM2.92 billion from RM3.03 billion.

In a statement, VS Industry managing director Datuk SY Gan said the recent announcement of revised US tariff measures on various trading nations, including Malaysia, had prompted customers to adjust their orders.

“The overall order flow situation in Malaysia and Singapore in the near term will be contingent upon the prevailing consumer sentiments and the evolving development surrounding tariff measures, especially upon expiry of the 90-day grace period in early July 2025,” he said.

Meanwhile, Gan noted that the group had recently commenced mass production in the Philippines, with utilisation rates expected to gradually increase towards the end of the year.

The group also remains engaged with its customers on new product development programmes and is pursuing opportunities for a recovery in the quarters ahead, supported by anticipated new model launches from some of its customers.

Overall, the group remains positive on its long-term outlook, underpinned by a resilient customer base, strong vertical integration capabilities, sound financial fundamentals, and prudent cost and risk management.

VS Industry shares closed one sen or 1.31% higher at 77.5 sen on Wednesday, giving it a market capitalisation of RM3.06 billion.