Frencken FY2021 net profit up 38% at S$58.7m; company declares higher dividend

MAINBOARD-LISTED manufacturer Frencken Group E28 on Thursday (Feb 24) posted a 38 per cent increase in net profit to S$58.7 million for the full year ended Dec 31, 2021, from S$42.6 million the year before.

Group revenue rose 23.6 per cent year on year to S$767.1 million from S$620.6 million, lifted by higher sales from its mechatronics and integrated manufacturing services (IMS) divisions.

Revenue from its mechatronics division rose 26.6 per cent to S$659 million in FY2021 on the back of double-digit sales growth of the semiconductor, medical and analytical segments.

The IMS division posted a 6.8 per cent increase in revenue to S$107.8 million for the full year, mainly due to higher sales for the automotive and consumer & industrial electronics segments.

Earnings per share in FY2021 stood at 13.75 Singapore cents, compared with 10.01 cents the year before.

The board has recommended a final dividend of 4.13 cents per share, higher than the 3 cents for FY2020.

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Frencken said in its financial statements that it will continue its long-term strategy of strengthening its market position in the high technology industry, as well as focus on its goal of delivering sustainable and profitable growth.

It has, for instance, been ramping up its output capability and increasing production space with new facilities in Europe, Malaysia and Singapore.

Frencken is anticipating higher revenue for its semiconductor, industrial automation and automotive segments for the first half of 2022, compared with the corresponding period in 2021.

Shares of Frencken ended Thursday at S$1.60, down S$0.05 or 3 per cent.