Venture Corp’s first-half profit down 11.7% to $123.7 million on lower revenue, demand
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Venture's board of directors has declared an interim dividend of S$0.25 per share, unchanged from the interim dividend declared last year.
PHOTO: VENTURE CORPORATION
Samuel Oh
SINGAPORE - Technology solutions provider Venture Corporation reported a net profit of $123.7 million for the first half of the year ended June 30, down 11.7 per cent from $140 million in the corresponding period a year ago.
In a bourse filing on Aug 6, it proposed an interim dividend of $0.25 per share, unchanged from the first half of 2023’s dividend, to be paid on Sept 12.
Revenue for the first half was down 12.5 per cent to $1.4 billion from $1.6 billion, due to softer demand in the first quarter of 2024. The lower revenue was also in tandem with changes in finished goods, work in progress and decreased raw materials used, it said.
Net profit margin stood at 8.9 per cent for the first half, compared with 8.8 per cent for the first half of 2023, driven by its differentiated capabilities and a tight focus on cost optimisation, said the company.
Venture’s expenses for employee benefits for the first half decreased year on year, driven by reduction in subcontract labour, overtime charges and headcount leading to lower salaries, while research and development expenses were lower in this first half, due to customers requirements.
Foreign currency exchange gains for the first half were higher year on year, attributed to active monitoring of foreign exchange risk and execution of astute forex management strategies, said Venture.
Other operating expenses were lower year on year due to decrease in utilities, manufacturing overheads, and repairs and maintenance cost. Investment revenue improved in the first half, driven by strong net interest income growth due to the company’s higher net cash coupled with favourable interest rates.
Looking ahead, Venture said it remains proactive in pursuing multiple initiatives to further improve its performance for the second half of 2024. “These include the onboarding of new customers, new product introduction activities and supporting customers with geopolitical risk mitigation strategies,” it said.
“Venture continues to invest in expanding its capabilities in targeted technology domains. This will broaden the group’s value creation pathways for quality growth,” it added.
Shares of Venture Corporation fell 0.3 per cent or $0.04 to close at $14.40 on Aug 6, ahead of the results announcement. THE BUSINESS TIMES