SINGAPORE (Feb 22): Frencken Group ended FY17 with a 4Q profit of $5.3 million, up 18.9% from $4.4 million a year ago on higher on higher revenue. This brings the group’s earnings for the full year to $33.1 million, double of the $16 million reported in FY16.
Revenue for 4Q grew 12.9% to $125.5 million from $111.2 million a year ago, lifted by higher sales contributions from the mechatronics division. But this was offset in part by lower sales posted by the IMS division due to the absence of sales from Precico Electronics (PESB) in 4Q following its disposal in March 2017.
Excluding the impact of lower revenue contribution from PESB compared to 4Q16, group revenue would have increased 25.6% on-year instead.
Frencken’s semiconductor, analytical and medical segments also saw higher revenue contributions over the quarter, driven mainly by increased orders for related products as well as higher demand from end-users.
In line with the higher sales, gross profit grew 12.8% to $18.4 million from $16.3 million a year ago, while gross profit margin remained stable at 14.6%.
Administrative and general expenses grew 3.8% to $11 million from $10.5 million previously due to higher staff costs, provision for bonuses and performance incentive, consultancy fees, and IT-related expenses.
In its outlook, Frencken says its favourable results reflect the benefits of several programs which it has undertaken to enhance operational and cost efficiencies.
To further expand its market share, Frencken intends to work in close collaboration with its customers to develop the next generation of technology and products, it adds.
Shares in Frencken closed 2 cents lower at 66 cents on Thursday.
