Aztech Global Q1 net profit falls 3.6% to S$13.4 million
Janice Lim
TECHNOLOGY solutions provider Aztech Global ‘s net profit fell 3.6 per cent to S$13.4 million in the first quarter of 2023 compared to the same period a year ago on higher operating expenses.
The higher expenses resulted from inflationary cost pressures, the stronger local currencies at markets where Aztech is operating, as well as foreign exchange losses of S$3.1 million, the company said in a bourse filing on Thursday (May 4).
However, revenue went up by 26.3 per cent year on year to S$161.6 million in the quarter, driven mainly by an increase in sales of its Internet of Things devices and data communication products.
Sales of that segment, which increased by 27.7 per cent over the same period, contributed 97.8 per cent of the group’s total revenue.
Nonetheless, earnings per share for the quarter declined 3.4 per cent to 1.73 Singapore cents, from 1.79 cents a year ago.
Aztech Global said its order book remains strong, with S$627.4 million worth of orders secured as at Mar 31, 2023. It has since received additional orders of S$34.5 million as at May 4, bringing its total order book secured to S$661.9 million. The majority of its order book deals are scheduled for completion in FY2023.
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The company said it remains cautiously optimistic about its business outlook, and expects continued supply chain challenges, inflationary cost pressures, higher interest rates and geopolitical tensions to impact business and consumer spending for the rest of 2023.
Following the completion of the acquisition of Pasir Gudang Facility in April 2023, the group is focusing on ramping up production at the new facility which is expected to commence operations in June 2023, it added.
Shares of Aztech Global closed 0.6 per cent or S$0.005 higher at S$0.82 on Thursday.
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