Frencken H1 net profit falls 3.4% to S$19.3 million

[SINGAPORE] Tech solutions provider Frencken Group on Thursday (Aug 13) reported a 3.4 per cent decline in net profit to S$19.3 million for the first half ended Jun 30, from S$19.9 million a year earlier.

This comes as administrative and general expenses widened 9.9 per cent year on year to S$32.6 million, from S$29.7 million.

Additionally, the group’s selling and distribution expenses also rose by 1.9 per cent to S$6.7 million, from S$6.6 million in H1 FY2025. Income tax expenses grew 12.4 per cent year on year to S$5.4 million, from S$4.8 million.

Revenue dipped 0.8 per cent to S$427.8 million, from S$431.4 million in the year-ago period.

By business segments, revenue from the mechatronics division, which accounts for the bulk of group sales, eased 1.5 per cent to S$383.4 million in H1.

Within the division, revenue from the semiconductor segment fell 1.1 per cent to S$213.3 million; revenue from the analytical life-sciences segment dropped 13.7 per cent to S$75.3 million.

THE BUSINESS TIMES INSIGHTS

Powering Asean's Future 2026

Find out how enterprises are navigating power constraints and sustainability targets

ACCESS THE INSIGHTS

This was partially offset by revenue gains in the medical segment (up 10.1 per cent at S$70.5 million) and industrial automation (up 9.8 per cent at S$18.4 million).

Earnings per share stood at S$0.045, down from S$0.0467 a year earlier.

Frencken expects its H2 revenue to be higher than both H1 and the corresponding year-ago period.

The group also expects revenue and net profit for FY2026 to be higher than for FY2025, barring “any adverse changes in external environment and volatility in foreign-exchange markets”.

It added that based on its current trajectory and core business momentum, it “envisages that it could cross the S$1 billion annual revenue mark by 2028, if not earlier”.

The counter ended 4.1 per cent or S$0.11 higher at S$2.79, prior to the release of results.