Venture Corporation's net profits down 33.6% in Q1

Factory lockdowns in China, Spain, US and Malaysia dragged on profits.

Venture Corporation’s net profits plunged 33.6% YoY to $60.3m in Q1, down from $90.9m in Q1 2019, the company revealed in an SGX filing. Revenue also fell 27.5% YoY to $673m from $928.8m over the same period of comparison.

The group’s subdued performance was attributed to disruptions in global supply chains, particularly in China, Malaysia and Singapore; as well as factory lockdown in China, Spain, US and Malaysia that impacted the second half of the quarter.

As a result, the group’s earnings per share (EPS) was shaved 34% YoY to $0.208 in Q1, from $0.315 in the Q1 2019.

"Venture assured that it is in a position to take advantage of any rebound or surge in the industries it does business in. It has also resumed operation of its operating entities as its business are considered “essential products” and “essential services”, the group added.

“The Venture Group’s businesses are deemed as suppliers of both 'essential products' as well as 'essential services'. By end April, most if not all of its operating entities received exemptions to operate without headcount or working hour constraints. As such, the supply side of our businesses have resumed operations whilst continuing to comply with all safety and precautionary measures for employees who work on sites,” Venture said in its SGX filing.

The group also noted that some realignment of the global supply chain is inevitable, and that this presents opportunities, particularly for its entities in Singapore and Malaysia.