Venture Records 135% Q3 Net Profit Growth


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In the third quarter of 2017, Singapore-based EMS firm Venture Corp. Ltd registered a 135% jump in net profit to S$111.4 million, driven by strong revenue growth and value creation through engineering and R&D capabilities. Sustained operational excellence also contributed to the high productivity and quality performance. For the nine months ended 30 September 2017, net profit rose 81.5% year-on-year to S$229.8 million.

For the quarter ended 30 September 2017, the Group registered revenue of S$1.1 billion, an increase of 50.5% year-on-year. For the nine months ended 30 September 2017, revenue improved by 44.5% year-on-year to S$2.9 billion. Revenue improvement for the reported quarter and for the first nine months of 2017 is attributable to the commendable progress achieved by the Group across several strategic and operational imperatives including continuing strong execution of customers’ programs and deepening of collaborative partnership with strategic customers.

In tandem with the revenue growth, the Group recorded profit before tax (PBT) of S$131.3 million for the quarter ended 30 September 2017, an increase of 131.7% year-on-year. For the first nine months of 2017, the Group recorded PBT of S$275.8 million, an increase of 82.9% year-on-year. In line with the higher PBT and based on tax incentives granted to its subsidiaries, the Group reported income tax expense of S$19.9 million for the reported quarter and S$46.0 million for the first nine months of 2017.

Net profit rose 135.0% year-on-year to S$111.4 million for the reported quarter. For the nine months ended 30 September 2017, net profit rose 81.5% year-on-year to S$229.8 million. The Group registered net margin of 10.5% for the reported quarter (3Q 2016: 6.7%) and 7.9% for the first nine months of 2017 (9M 2016: 6.3%).

Diluted Earnings Per Share for the reported quarter was 38.9 cents (3Q 2016: 17.0 cents) and 80.5 cents for the first nine months of 2017 (9M 2016: 45.5 cents).

Financial Position and Cashflow

The Group generated operating cash flow of S$153.5 million before working capital changes for the quarter ended 30 September 2017 (3Q 2016: S$71.2 million). For the nine months ended 30 September 2017, operating profit before working capital changes amounted to S$315.9 million (9M 2016: S$187.4 million). For the quarter ended 30 September 2017, the Group registered an increase in working capital position largely due to trade receivables and inventories balances. Trade receivables balance stood at S$803.7 million in tandem with the revenue recorded for the reported quarter. The increase in inventories was primarily to support customers’ requirements and programmes. For the nine months ended 30 September 2017, the Group generated cash from operations of S$308.6 million (9M 2016: S$207.6 million).

As of 30 September 2017, the Group had S$599.6 million of cash and bank balances (S$499.7 million as at 31 December 2016). As at the end of the reported quarter, the Group remained net cash positive at S$535.1 million (S$407.1 million as at 31 December 2016).

As at 30 September 2017, Equity attributable to owners of the Company was S$2.0 billion (S$2.0 billion as at 31 December 2016) and Net Asset Value per share was S$7.14 (S$7.03 as at 31 December 2016).

Outlook

Venture Corporation’s recent financial results and operational excellence are strong indicators of its progress across multi-platforms of strategic and operational initiatives.

Venture continues to forge deeper and mutually beneficial collaborative partnerships and alliances across its diversified portfolio of ecosystems of interests. Partners selected are typically leaders in fast-growing technology domains of interests. Venture’s ambition is to be well positioned to effectively deliver and realise impactful values for its partners.

Success is accomplished inter alia, through growing a critical mass of high quality talents across the management, technical and professional disciplines. Venture remains committed to harness the collective strengths and synergies of its human capital to relentlessly deliver compelling differentiation, advancing Venture’s position as a leading global provider of technology solutions, products and services.

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