Versalink's net profit crashes 21% to $0.9m

Blame it on the huge decline in other income.

Even with a strong headline for the first half year of its FY17, Singapore-listed furniture manufacturer Versalink reflected a 21% decline in earnings to $0.9 million (RM 2.6 million).

According to the group's announcement filed on Singapore Exchange, this is mainly due to other income plummeting 71.4% to RM 0.4 million.

"The decrease in other income was mainly due to decrease in foreign exchange gain of approximately RM1.1 million and partially offset by higher interest income of approximately RM0.1 million," Versalink said.

The reflected net profit for the half year was in comparison to the RM 3.3 million earnings recorded last year.

Meanwhile, its headline revenue rose 3% to RM 31.3 million, inching up from RM 30.4 million.

Looking forward, Versalink expects the next 12 months to be challenging and uncertain due to the global slowdown.

"Nonetheless, the Group will continue to explore and develop new business opportunities both in Malaysia and overseas, whilst managing its costs effectively with the objective of maximising its shareholders’ value," the group said.