Venture Corporation Limited has reported 8.1% lower earnings of $166.8 million for the 2HFY2020 ended December from earnings of $181.5 million a year ago.
This brings the group’s FY2020 earnings to $297.3 million, 18.1% lower than FY2019 earnings of $363.1 million.
The earnings translate to a net margin of 10.1% for the 2HFY2020 and 9.9% for the FY2020.
Compared to the 1HFY2020, Venture Corp reported a stronger performance in the 2HFY2020 due to another quarter of sequential improvement in the 4QFY2020 on the back of a “robust” 3QFY2020.
Diluted earnings per share (EPS) for the 2HFY2020 and FY2020 stood at 57.3 cents and 102.2 cents respectively, compared to EPS of 62.4 cents and 125.3 cents for the 2HFY2019 and FY2019 respectively.
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FY2020 revenue fell 17.1% y-o-y to $3.01 billion, due to the disruptions brought about by the Covid-19 pandemic on the global supply chain and factory lockdown in Malaysia, Spain, the US and China in the earlier part of 2020.
Changes in finished goods, WIP and raw materials used for FY2020 fell in tandem through “careful stewardship of raw materials and supply chain management”.
2HFY2020 revenue fell 8.6% y-o-y to $1.65 billion, although it registered a 20.6% increase h-o-h compared to the 1HFY2020.
Depreciation and amortisation expense for the FY2020 increased 7.5% y-o-y to $41.6 million due to higher depreciation charge for right-of-use (ROU) assets totally $11.4 million, compared to the ROU depreciation of $8.5 million in FY2019.
The group booked losses in foreign currency exchange of $1.2 million for the 2HFY2020, representing a 136.2% y-o-y plunge. For the FY2020, foreign currency exchange fell 57.1% y-o-y to a gain of $1.9 million from the $4.4 million in FY2019.
Venture Corp reported an 8% decline y-o-y in 2HFY2020 profit before tax (PBT) of $191.7 million and an 18.4% decrease y-o-y in FY2020 PBT of $342.8 million.
In line with the PBT, income tax expense recorded $45.4 million for the FY2020 and $24.9 million for 2HFY2020.
As at end-December, cash and cash equivalents stood at $928.7 million.
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The board has declared a final dividend of 50 cents per share for the FY2020, payable on May 25.
Including the interim dividend of 25 cents per share, this brings the total payout to 75 cents per share during the 12-month period.
In its outlook statement, the group says it has amassed “rich R&D capabilities and technical know-how” across various technology domains.
“Leveraging on this breadth of diverse experience, we are excited about the opportunities for us to grow in our existing domains and enter new ones,” says the group.
“Our beachhead in existing domains and entries into new up-and-coming ones will transform Venture into an active and influential contributor in its selected ecosystems of interest. Venture’s well thought out multi-year strategy will further enhance our strong Clusters of Excellence to support this transformation,” it adds.
Shares in Venture Corp closed 50 cents lower or 2.5% down at $19.20 on Feb 26.
