Vicplas International has posted earnings of $10.4 million for FY2021 ended July, up 112.5% from $4.9 million the previous year.
This translates to earnings per share of 2 cents on a fully diluted basis, up from 0.98 cents the previous year.
See also: Vicplas International reports 2.2 times earnings growth for 1HFY21
Revenue for the period increased by 28.2% to $113.9 million in FY2021 from $88.8 million in FY2020, driven by higher revenue from both medical devices and pipes and pipe fittings segments.
The higher revenue was driven by both its medical devices as well as its pipes and pipe fittings segment. The medical devices segment saw revenue increase 30.6% to $80.2 million in FY2021, due to increased orders from its customers, while revenue from the pipes and pipe fittings segment increased 22.9% to $33.8 million, due to the gradual recovery in the construction industry from the disruptions caused by the Covid-19 pandemic.
Other income increased by 32.4% in FY2021 to $6.9 million due to more tools built for customers in the medical devices segment and foreign exchange gain, despite a $0.9 million reduction in Covid-19 related government subsidies in FY2021 as compared to FY2020.
The group recorded a profit before tax of $12.3 million and a profit after tax of 10.4 million for FY2021, up 71.6% y-o-y.
Vicplas is recommending a final dividend of 0.45 cents per ordinary share for FY2021, 20% higher than the dividend of 0.375 cents per share for FY2020.
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In view of opportunities to keep growing the Group’s medical devices segment, Vicplas sstates more capital has been retained in the business to support such growth in the long term interest of shareholders. In addition, the group is mindful of the uncertainties in the macro environment as well as the Group’s working capital, cashflow and capital expenditure requirements.
“In FY2021, Vicplas achieved its best results ever with the medical devices segment’s positive growth trajectory and the pipes and pipe fittings segment recovering in tandem with the construction industry. With a challenging operating environment due to the ongoing Covid-19 pandemic and uncertainties in the wider macro environment, the Group remains cautiously optimistic for the year ahead,” says Cheng Liang, Vicplas’ CEO.
As at 9.55am, shares in Vicplas are down 3 cents or 11.1% lower at 24 cents.
