Venture posts 8.3% fall in Q3 earnings amid softness in consumer tech

[SINGAPORE] Technology player Venture Corp on Thursday (Nov 13) posted a net profit of S$55.6 million for the third quarter ended Sep 30.

While Venture did not disclose a year-on-year comparison, the figure translates to an 8.3 per cent fall from the S$60.6 million net profit stated in a business update for the year-ago period.

The latest quarterly result “reflects expected softness in the lifestyle consumer technology domain”, Venture said in a business update on Thursday.

Revenue for Q3 came in at $627.2 million, down 9.1 per cent from a year earlier and 2.8 per cent lower than in Q2. On a constant currency basis, revenue would have dipped 0.6 per cent quarter on quarter.

The group noted that its net profit margin remains “strong”, at 8.9 per cent, through its focus on high value-add solutions.

Venture segmented its Q3 FY2025 revenue into “portfolio A” and “portfolio B”, which accounted for S$222 million and S$405 million in revenue, respectively.

Portfolio A, which includes the group’s business in the consumer lifestyle and life science technology domains, booked a 10.5 per cent quarter-on-quarter decline in revenue.

Venture attributed this to its research and development, which “improved the reliability and longevity of a lifestyle consumer client’s key product”. This lowered product replacements and volumes.

Meanwhile, revenue from portfolio B, which includes among others the group’s business in instrumentation, test and measurement technology, rose 2 per cent quarter on quarter.

SEE ALSO

Venture Corp’s Q3 net profit falls 4.7% to S$60.6 million

Venture said this was thanks to new wins from customers in the test and measurement instrumentation and semiconductor-related equipment domains.

“Our strategic initiatives in the other technology domains have delivered results,” it said.

The group added that it is in a net cash position “in excess of S$1 billion” as at Sep 30. This is after the payment of its first-half interim and special dividends on Sep 12, as well as share buybacks during the year.

Its working capital position as at Sep 30 was “improved by S$94.8 million” from Dec 31, 2024. This was attributed to “proactive management in optimising trade receivables and payables”.

Looking ahead, Venture is “ramping up activities for hyperscale data centres”, including network connectivity solutions. In the life sciences segment, it is working on the design and manufacture of advanced instruments.

It is also focused on securing new wins and increasing its market share for complex test and measurement instrumentation devices, as well as landing new business in building automation and security.

The group is further strengthening partnerships with key customers for “steady progress” in semiconductor-related equipment.

“Venture’s efforts in driving such opportunities and growing partnerships will lay the foundation for sustainable growth,” it said.

Shares in Venture ended Thursday flat at S$15.06, before the business update was released.