Venture H2 net profit falls by a third on lower revenue

VENTURE Corp reported on Thursday (Feb 22) a 33.4 per cent decline in net profit for the second half, on the back of lower revenue.

Net profit for the six months ended Dec 31, 2023 fell to S$130 million, down from S$195.3 million in the year-earlier period. On a per-share basis, earnings slipped to S$0.447 in H2 FY23, from S$0.671 the previous year.

A final dividend of S$0.50 per share was proposed, unchanged from a year earlier. Including the interim dividend of S$0.25, which was paid in September, total dividend for FY2023 will amount to S$0.75 per share. The full-year dividend has remained at this level since FY2020.

Revenue for H2 fell 30.2 per cent on year to S$1.4 billion. The group said the lower revenue year on year (yoy), against a high base the previous year, was mainly attributable to softening demand across its technology domains and customers’ inventory destocking. 

For the full year, Venture’s revenue fell 21.7 per cent to S$3 billion. Meanwhile, net profit slipped 26.9 per cent to S$270 million.

In terms of outlook, Venture said feedback from customers indicated that demand would be stronger in H2 2024 than in H1.

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The group said: “We are expanding our participation in our customers’ products by providing more services across the design, sourcing, manufacturing and supply-chain management process. We are also creating advanced modules that help improve product performance, generating outstanding value for our customers.”

Net asset value per share was unchanged yoy, amounting to S$9.758 as at Dec 31, 2023. The group noted that its balance sheet remained strong, with a net cash position of around S$1.1 billion.

The counter rose S$0.06 or 0.4 per cent to close at S$14.10 on Thursday, before the results were announced.