Full-year revenue falls 9.6% to S$2.7 billion

 

VENTURE Corporation : V03 -0.15% posted a 6.6 per cent year-on-year decline in net profit to S$121.4 million for the half year ended Dec 31, 2024, from S$130 million a year earlier.

 

This came as revenue over the same period fell 6.3 per cent on year to S$1.35 billion, from S$1.44 billion.

 

In its earnings release on Friday (Feb 21), Venture : V03 -0.15% noted that its H2 revenue 2.3 per cent lower compared with revenue in the first half of the year. It attributed this mainly to its lifestyle consumer technology domain, which was affected by unexpected lower demand.

 

&ldquo This was offset by revenue growth across the majority of technology domains. In particular, networking and communications and advanced industrial technology domains delivered better results,&rdquo the company said.

 

The company&rsquo s earnings per share came in at S$0.419 for the half year, from S$0.447 in the corresponding period a year earlier.

 

Venture&rsquo s board proposed a final dividend of S$0.50 per share, unchanged from the year-ago period. If approved by shareholders at the company&rsquo s upcoming annual general meeting, the dividend will be payable on May 19, after books close on May 6.

 

For the full year, net profit declined 9.3 per cent year on year to S$245 million, as revenue fell 9.6 per cent to S$2.7 billion.

 

In the year ahead, Venture said that it is implementing new business wins in design and manufacturing. It added that the company aims for growth in 2025, despite an uncertain short-term business environment.

 

&ldquo We are confident in our ability to effectively navigate complexities by leveraging our differentiating capabilities, resilience and long-standing relationships with key partners,&rdquo it said.

 

It noted that it plans to make investments to differentiate itself and explore growth opportunities.

Company is targeting for revenue to improve from Q1 to Q2 this year

TECHNOLOGY solutions provider Venture Corp : V03 +1.76% on Friday (May 3) posted a net profit of S$60.1 million for the first quarter ended Mar 31. This marks an 18.3 per cent fall from the S$73.6 million net profit it reported in its year-ago business update.

 

Meanwhile, its Q1 revenue stood at S$666.7 million, 18.9 per cent lower than the S$821.7 million figure disclosed in last year&rsquo s Q1 business update.

 

Venture cited &ldquo lower overall customer demand amid some remaining headwinds&rdquo as the reason behind its performance in the Friday filing.

 

&ldquo In particular, the life sciences sector and certain segments of the network and communications market still saw some destocking in Q1,&rdquo the company said, without elaboration on what constitutes &ldquo destocking&rdquo .

 

It however noted that the headwinds &ldquo are beginning to taper off&rdquo , and that it has maintained a &ldquo robust&rdquo net profit margin of 9 per cent.

 

Venture generated S$132.9 million in net cash from its operations in Q1, and improved working capital by S$66.9 million, compared to Dec 31, 2023. The optimisation of working capital reflects &ldquo positive proactive management&rdquo , Venture said.

 

Looking ahead, Venture is targeting for revenue to improve from Q1 to Q2 this year. &ldquo In addition, it is expected that group revenue will be higher in the second half of 2024 compared to the first half,&rdquo the company said.

 

It is onboarding new customers in its EMS++, precision engineering and Ventech Group businesses. This includes customers in the medtech and lifestyle sectors, and &ldquo promising&rdquo technology domains.

 

Venture also expects new businesses from supporting customers through &ldquo geopolitical risk mitigation strategies&rdquo . Demand is strengthening in &ldquo several technology domains&rdquo in the rest of 2024 going by customer feedback, the company added, without further specifics.

 

Venture has net cash of S$1.19 billion, with no borrowings, as at Mar 31, and a net asset value per share of S$10.06.