Venture's profit up 16.4% to $70.2m in Q2

Interim dividend was declared at $0.25 apiece.

Venture Corporation saw its net profit jump 16.4% YoY to $70.2m in Q2, an SGX filing revealed. However, profit attributable to shareholders for H1 crashed 28.2% YoY to $130.51m from $181.68m in H1 2019.

Revenue for the same quarter hit $692.7m, translating to a net margin of 10.1%. Meanwhile, revenue for H1 dropped 25.5% YoY to $1.37b from $1.83b. This brings the H1 net margin to 9.6%.

The decline in H1 revenue was attributed to disruptions to the global supply chain and factory lockdowns in Malaysia, Spain, US and China. Orders from some customers operating in non-essential end market segments were pushed back to later quarters, and costs on finished goods, work in progress and raw materials were reduced.

The diluted earnings per share was at 44.9 cents for H1, compared to 62.9 cents in H1 2019.

Venture recorded an operating cash flow of $167.6m before working capital changes for H1. The group also registered an improvement in working capital position, mainly due to lower net receivables and payables position. Cash flow from operations stood at $271.3m from $235.6m in H1 2019.

The board of directors has declared an interim dividend of $0.25 apiece on a one-tier tax-exempt basis. The interim dividend payment date will be on 18 September.

Looking ahead, Venture is expecting a steady recovery seen in Q2 to spill over to H2. The firms’ R&D labs have plans to subsequently release a number of newly developed products into manufacturing commencing early 2021.