Venture Corp net profit up sequentially to S$77m in Q3, though down year-on-year

VENTURE Corporation's V03 net profit was S$77 million for the third quarter ended Sep 30, up sequentially from S$75.1 million in the quarter before, the electronics manufacturing services firm said in a business update on Wednesday (Nov 3) after market close.

This took its earnings per share (EPS) to S$0.264 for the quarter. While Venture did not provide year-ago EPS figures in its Wednesday statement, it had previously reported a net profit of S$80.2 million in its Q3 2020 results.

Revenue also rose sequentially to S$769.9 million, but was lower than S$818.4 million in the year-ago period.

In Q3, fulfilment of strong demand from customers and partners was impaired by global components shortages and the Extended Movement Control Order in Malaysia from June, said Venture.

It added that demand for its services, products and solutions "remained healthy and broad-based" in Q3; it expects this positive trend to continue for the next 12 months, with new products to be launched globally.

With more than 96 per cent of its Malaysia workforce and more than 92 per cent of its global workforce fully vaccinated, nearly all employees have been able to return to work since September.

As the remaining impediment is the availability of parts or components, the company's priority "is to focus on various innovative pathways" to secure these, said Venture.

Investments will be made to strengthen its clusters of excellence, to expand science and technology talent, and in "synergistic acquisition opportunities".

The latest update takes net profit for the first nine months of 2021 to S$217.4 million, up 3.2 per cent from the year-ago period. Revenue for the first nine months is up 0.8 per cent at S$2.2 billion.

Net asset value per share was S$9 as at Sep 30, 2021, from S$8.92 as at Dec 31, 2020.

Venture shares closed unchanged at S$18.95 on Wednesday before the update.