Venture Corp H2 2021 net profit rises 2.9%

MAINBOARD-LISTED Venture Corporation's V03 net profit for the half-year ended Dec 31, 2021 rose 2.9 per cent to S$171.7 million from S$166.8 million in the same period a year ago.

Revenue for the half-year rose 1.7 per cent to S$1.68 billion, up from S$1.65 billion posted the year before.

In releasing its financial results on Friday (Feb 25), Venture Corp said that this was driven by diversified growth across the different technology domains of the electronics manufacturing services firm.

The company said: "Venture's special task forces worked collaboratively with customers and suppliers, as well as relevant government agencies and industry associations to overcome supply-chain disruptions and deliver on customers' commitments."

Earnings per share for the company stood at S$0.591 for the half-year, up from S$0.576 a year earlier.

The company proposed a final dividend of S$0.50 per share, bringing the total dividend for the year to S$0.75. Total dividend for the company for the previous financial year also stood at S$0.75.

As for the full year ended Dec 31, 2021, the company posted a 5 per cent year-on-year rise in net profit to S$312.1 million; its topline climbed 3.1 per cent to S$3.11 billion. Earnings per share for the year stood at S$1.075 per share, up from S$1.028 from the previous year.

The company's net profit margins rose from 9.9 per cent in FY2020 to 10 per cent in FY2021.

Cash flow generated from operations fell to S$158.2 million in FY2021, from S$498.6 million a year earlier. This was mainly due to negative trade receivables of S$112.5 million, and negative inventories of S$382.5 million in the full year.

The company noted that its working capital position increased in the second half of 2021 due to higher inventories to support customer orders in the coming quarters.

Broken down by segments, revenue from the company's advanced manufacturing and design solutions segment fell by 6 per cent year on year to S$1.58 billion in FY2021; revenue from its technology products and design solutions segment climbed 14.4 per cent to S$1.56 billion.

For the coming year, the company expects to see strong demand based on its customers' orders and forecasts.

It said: "Notwithstanding a healthy order pipeline, the key impediment to fulfilment is the ongoing supply-chain disruption, which affects the availability of parts and components." It added that other potential headwinds include the emergence of new Covid-19 variants that may impact macro-economic activity.

Venture Corp shares closed up 2.7 per cent or S$0.47 at S$17.68 on Friday, before the financial results were released.