SINGAPORE (Feb 27): Venture Corporation reported earnings of $96.3 million for 4QFY2019 ended December, some 10% lower than earnings of $107.7 million in the corresponding quarter last year.
This brings the group’s full-year earnings to $420 million, a marginal decline of 3.0% from FY2018’s earnings of $433 million.
Despite the lower earnings, Venture is maintaining its yearly dividend payout of 70 cents per ordinary share, including a 20 cents interim dividend that was paid in September 2019, and a proposed final dividend of 50 cents.
Subject to the approval of shareholders at the group’s upcoming annual general meeting in April, the final dividend is slated to be paid on May 22.
Revenue for the quarter inched up 2.9% to $932.1 million from $905.9 million in 4QFY2018. Venture says that this was attributable to sequential growth from a diverse portfolio of customers.
The group booked an 11.2% increase in employee benefits expenses as it continued to invest in its latest talent acquisition to strengthen competencies.
Depreciation and amortisation expenses increased 40.8% to $10.8 million due to additional charges on its right-of-use (ROU) assets from the adoption of the SFRS(I) 16 leases.
As a result of this, Venture’s net profit margin was reduced to 10% from 10.6% the previous year.
Earnings per share for the quarter came in at 33.3 cents, down from 37.1 cents a year ago.
Venture’s net asset value per share increased by some 6% to $8.65 from $8.16 last year.
As at end-December, cash and cash equivalents stood at $714.5 million.
In its outlook statement, the group says that it has swiftly implemented corrective action plans to
stabilise its assurance of supply amid the CoVid-19 outbreak.
“Production capacity from the group’s Clusters of Excellence outside of China, which forms the majority of Venture’s manufacturing footprint, remains intact,” says Venture.
“Starting from the second quarter of 2020, the group expects to be able to fulfil most, if not all, of customers’ orders, including backlog from 1QFY2020,” it adds.
Looking ahead, Venture is anticipating a stronger 2HFY2020, boosted by traction from its new and existing partners.
Venture continues to invest into expanding its differentiating capabilities within its ecosystems of interest. This is expected to, in turn, further strengthen its existing partnerships and deepen its value proposition in its selected technology domains and ecosystems.
“As the group’s manufacturing footprint is mostly located in Southeast Asia, the group is well positioned to capture new business opportunities as businesses continue to diversify their global supply chain network,” says Venture.
Shares in Venture Corp closed 13 cents higher, or 0.79% up, at $16.51 on Thursday prior to the results announcement.
