Venture Corp profit dropped 19.9% to S$33.6m

Blame it on waning customer loyalty and demand.

In a release, Venture registered revenue of S$611.8 million for the quarter ended 30 June 2012, compared to S$628.7 million for the corresponding quarter of the prior year. The revenue for the quarter was 6.5% higher than the revenue of S$574.3 million recorded for the first quarter of this year.

The Group generated cash from operations of S$47.0 million for the quarter ended 30 June 2012, compared to cash generated from operations of S$42.3 million for the corresponding quarter in the preceding year and S$9.8 million for the prior quarter. 

The working capital of the Group was S$652.1 million as at 30 June 2012. This comprised S$445.7 million Trade Receivables, S$339.2 million Trade Payables and S$545.6 million of Inventories. Total shareholders’ equity of the Group amounted to S$1.8 billion and the Net Asset Value per share was S$6.44 as at 30 June 2012.

Revenue (S$’m) for 2Q is 611.8 while last year's 2Q was 628.7 (2.7%). Net Profit (S$’m) is 33.6m this quarter compared to last year's 42.0 (19.9%).

Revenue (S$’m) for 1H is 1,186.1 as compared to last year's 1,216.3 (2.5%). Net Profit (S$’m) for 1H is 69.1 while last year was 83.11 (16.8)

Customers’ demand forecast and commitment continue to be impacted by current global economic conditions. The Group will increase its focus on several initiatives to augment its share of the market. It will intensify its unique alliance and TCS (total customer satisfaction) management for its diverse customer base. It will also engage customers strategically to provide superior support and operational excellence across the entire value-chain.

The Group expects to launch several new products from existing and new custtomers towards the end of the year with growing contributions beyond FY 2012. Management will continue to harness the collective strength and competency of the Group to achieve healthy growth.