Venture Corp profits fell 7.3% to $90.81m in Q2

Revenues slipped 5.1% as its customer portfolio took hits from geopolitical headwinds.

Venture Corporation’s profit slipped 7.3% YoY to $90.81m in Q2 from $97.91m in 2018, an announcement revealed.

It was dragged down by lower revenues, which fell 5.1% to $903.48m from $953.28m over the same period. Its pre-tax profit also dipped 8.5% YoY to $105.4m. In line with its pre-tax profit, the group reported income tax expense of $14.5m. This translated to a net margin of 10.1% for Q2, up 10.3% YoY from 2018.

A report previously noted that the company’s major customers, Illumina and Philip Morris, guided for growth in 2019 but trade war risks remain.

Also read: Can Venture Corporation recover and regain investor confidence?

The group generated operating cash flow of $110.4m in Q2. Interim dividend for the period is $0.20 apiece on a one-tier tax-exempt basis.

Meanwhile, its H1 profit inched up 0.1% YoY to %181.68m and its revenue climbed 1.3% to $1.82b. However, its pre-tax profit fell 1% YoY to $211.59m.

“Revenue for H1 2019 held steady as the group’s diversified portfolio of customers provided resilience against headwinds from geopolitical and macroeconomic factors,” the company said.

Operating profit before working capital changes amounted to $223.3m, a lower figure as compared to $226m in H1 2018.