VENTURE Corporation 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 the second half fell 30.2 per cent on year to S$1.4 billion. The group said the lower revenue year on year, 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 indicates that demand would be stronger in the second half of 2024 compared to the first half.
“Venture is 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,” the group said.
Net asset value per share was unchanged year on year, amounting to S$9.758 as at Dec 31, 2023. The group noted its balance sheet remained strong, with a net cash position of around S$1.1 billion.
The counter rose 0.4 per cent to close at S$14.10 on Thursday, before the results announcement.
