KUALA LUMPUR (July 29): Diversified group Vizione Holdings Bhd slipped into the red in the second quarter ended May 31, 2021 (2QFY22) with a net loss of RM2.37 million, as compared to a net profit of RM2.04 million a year earlier, dragged by lower contribution across all its segments.

The group’s construction segment’s net profit fell 46% year-on-year (y-o-y) to RM1.45 million, down from RM2.67 million. Meanwhile, its investment holdings, property development and healthcare segments were making losses, its bourse filing showed on Friday (July 29).

Vizione’s investment holdings segment posted a net loss of RM1.96 million, while its property development division sank into the red with a net loss of RM234,000. Besides, the group’s healthcare segment also recorded a net loss of RM1.35 million, as compared to a net profit of RM5.17 million a year ago.

Moreover, Vizione’s net interest expenses more than doubled to RM1.05 million, from RM511,000 previously.

As a result, it posted a loss per share of 0.16 sen in 2QFY22 against an earnings per share of 0.26 sen per share a year prior.  

Revenue for the quarter dropped 34.1% to RM63.75 million, from RM96.8 million a year ago.

For the cumulative six months ended May 31, 2022 (6MFY22), its net profit came in at RM780,000, down by 74.5% from RM3.06 million a year ago. Revenue also shrank 11.8% to RM141.61 million from RM160.64 million.

Vizione said its construction division's quarterly financial performance was affected by supply chain disruption, soaring building materials costs and foreign labour shortage.

“Ongoing projects awarded before the pandemic are affected as the projects are priced lower, with no allowances for price increases which resulted in reduced profit and even losses in some of the group’s construction projects,” it added.

For its healthcare division, Vizione said it has been experiencing the effects of normalisation in terms of demand and average selling price as the country transitions into the endemic phase of Covid-19.

“Furthermore, production cost increased significantly due to global inflation as well as minimum wage implementation which came into effect May 1, 2022,” it added.

However, it pointed out that average selling prices are declining at a far slower pace which will help cushion the cost impact.

The group will continue to explore more opportunities in the global and local markets for gloves, including specialty medical gloves as personal protective equipment.

Shares in Vizione closed unchanged at seven sen, giving it a market capitalisation of RM143 million.