TECHNOLOGY solutions provider Venture Corp : V03 0% on Friday (May 3) posted a net profit of S$60.1 million for the first quarter ended Mar 31.
This marks an 18.3 per cent fall from the S$73.6 million net profit it reported in its year-ago business update.
Meanwhile, its Q1 revenue stood at S$666.7 million, 18.9 per cent lower than the S$821.7 million figure disclosed in last year’s Q1 business update.
Venture cited “lower overall customer demand amid some remaining headwinds” as the reason behind its performance in the Friday filing.
“In particular, the life sciences sector and certain segments of the network and communications market still saw some destocking in Q1,” the company said, without elaboration on what constitutes “destocking”.
It however noted that the headwinds “are beginning to taper off”, and that it has maintained a “robust” net profit margin of 9 per cent.
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Venture generated S$132.9 million in net cash from its operations in Q1, and improved working capital by S$66.9 million, as compared to Dec 31, 2023. The optimisation of working capital reflects “positive proactive management”, Venture said.
Looking ahead, Venture is targeting for revenue to improve from Q1 to Q2 this year. “In addition, it is expected that group revenue will be higher in the second half of 2024 compared to the first half,” the company said.
It is onboarding new customers in its EMS++, precision engineering and Ventech Group businesses. This includes customers in the medtech and lifestyle sectors, and “promising” technology domains.
Venture also expects new businesses from supporting customers through “geopolitical risk mitigation strategies”. Demand is strengthening in “several technology domains” in the rest of 2024 going by customer feedback, the company added, without further specifics.
Venture has net cash of S$1.19 billion, with no borrowings, as at Mar 31, and a net asset value per share of S$10.06. Its shares ended Friday at S$14.46, up S$0.25 or 1.8 per cent.
