Reading time ( words)
In the second quarter of 2018, EMS firm Venture Corp. Ltd registered a 40% increase in net profit to S$97.9 million. For the six months ended 30 June 2018, net profit rose by 53% to S$181.6 million. The group’s initiatives to leverage its core capabilities in R&D, advanced manufacturing to deliver deep value creation and drive operational excellence across the value-chain contributed to the improvement in profitability.
For the quarter ended 30 June 2018, the group generated revenue of S$952.3 million. Quarter-on-quarter, revenue for 2Q 2018 increased by 11.2%. On a year-on-year basis, revenue declined by 6%. For the six months ended 30 June 2018, the group recorded revenue of S$1.8 billion, a slight decline of 2.6% year-on-year. In US dollar terms, revenue for 1H 2018 would have grown by 3.4%.
The group recorded profit before tax (PBT) of S$115.2 million for the quarter ended 30 June 2018, an increase of 36.3% year-on-year. For 1H 2018, the group recorded PBT of S$213.8 million, an increase of 48% year-on-year. In line with the higher PBT, the group reported income tax expense of S$17.3 million for the reported quarter and S$32.2 million for 1H 2018.
Net profit rose 40.2% year-on-year to S$97.9 million for the reported quarter. For the six months ended 30 June 2018, net profit rose 53.3% year-on-year to S$181.6 million. Venture registered net margin of 10.3% for the reported quarter (2Q 2017: 6.9%) and 10% for 1H 2018 (1H 2017: 6.4%).
While Venture has delivered a creditable 1H 2018 performance, some volatility may arise in the near term from customers’ M&A, new product/platform transitions and also from the possibility of escalation of trade war and component shortages. Venture and its partners have worked out various strategies to mitigate these issues.
Moreover, the Group is well positioned to leverage on its strong Clusters of Excellence, differentiated strategy and diversified competencies to capture new opportunities arising from the changing operating environment. In addition, growth drivers across Venture’s broad-based portfolio of technology domains and strong supply chain management will provide resilience and stability to its long-term performance.
Venture’s focus on its expanding R&D capabilities, transformational engineering and operational excellence continue to underpin the group’s ability to gain traction and deepen its collaborative partnerships with leaders in fast-growing domains of interest. The group will continue to execute with excellence in quality, productivity and value creation.