Venture H2 net profit falls by a third on lower revenue

 

For the full year, Venture&rsquo s revenue fell 21.7 per cent to S$3 billion. Meanwhile, net profit slipped 26.9 per cent to S$270 million. 

VENTURE Corp reported on Thursday (Feb 22) a 33.4 per cent decline in net profit for the second half, on the back of lower revenue.

 

Net profit for the six months ended Dec 31, 2023 fell to S$130 million, down from S$195.3 million in the year-earlier period. On a per share basis, earnings slipped to S$0.447 in H2 FY23, from S$0.671 the previous year.

 

A final dividend of S$0.50 per share was proposed, unchanged from a year earlier. Including the interim dividend of S$0.25, which was paid in September, total dividend for FY2023 will amount to S$0.75 per share. The full year dividend has remained at this level since FY2020.

 

Revenue for H2 fell 30.2 per cent on year to S$1.4 billion. The group said the lower revenue year on year (yoy), against a high base the previous year, was mainly attributable to softening demand across its technology domains and customers&rsquo inventory destocking. 

 

For the full year, Venture&rsquo s revenue fell 21.7 per cent to S$3 billion. Meanwhile, net profit slipped 26.9 per cent to S$270 million.

 

In terms of outlook, Venture : V03 +0.43% said feedback from customers indicated that demand would be stronger in H2 2024 compared to H1.

&ldquo Venture is expanding our participation in our customers&rsquo products by providing more services across the design, sourcing, manufacturing and supply chain management process. We are also creating advanced modules that help improve product performance, generating outstanding value for our customers,&rdquo the group said.

 

Net asset value per share was unchanged yoy, amounting to S$9.758 as at Dec 31, 2023. The group noted its balance sheet remained strong, with a net cash position of around S$1.1 billion.