Venture Q1 profit down 33.6%

VENTURE Corp's first-quarter net profit shrank by about 33 per cent year on year to S$60.3 million, it said in a filing to the Singapore Exchange on Friday.

Revenue fell 27.5 per cent to S$673 million, owing to disruptions to the global supply chain in China, Malaysia and Singapore, as well as to factory lockdowns in China, Spain, the United States and Malaysia.

Meanwhile, earnings per share (fully diluted) dropped 34 per cent to 20.8 cents.

Venture, an electronics manufacturing-services firm, said: "The supply side of our businesses has resumed operations, while continuing to comply with all safety and precautionary measures for employees who work on-site."

By end April, most - if not all -  its operating entities had secured exemptions to operate without restrictions around headcount or working hours as its businesses are suppliers of essential products and services.

Venture said it sees robust demand for services, products, devices or modules in areas such as medical and wellness, and diagnostic and research equipment. Its products that are being used by Covid-19-infected individuals; its ventilators, for example, are in strong demand, it said.

"Some realignment of the global supply chain seems inevitable, and this presents opportunities for the Venture group. Potential beneficiaries of these opportunities are our entities in Singapore and Malaysia," it added. 

Shares in Venture fell two cents to close at S$15.74 on Friday.