Venture Reports 10% Revenue Increase in Q2

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For the quarter ended 30 June 2015, Venture Corporation Limited registered revenue of S$661.0 million, an increase of 10% year-on-year, driven by both higher shipment and favourable exchange rate movement. Compared to the prior quarter, revenue for the reported quarter rose by 8.6%. For the six months ended 30 June 2015, revenue rose 6.5% to S$1,269.6 million.

The Group recorded Profit before tax (PBT) of S$42.3 million for the quarter ended 30 June 2015, an increase of 13.4% compared to the corresponding quarter of the prior year. Based on tax incentives granted to the Group and reflecting the sales mix of the quarter, the Group reported higher income tax expense of S$6.2 million for the quarter ended 30 June 2015. Profit attributable to owners of the Company (net profit) increased by 7.5% to S$36.1 million for the reported quarter. This translates to a net margin of 5.5% (2Q 2014: 5.6%; 1Q 2015: 5.4%). For the six months ended 30 June 2015, the Group net profit rose 6.7% year-on-year to S$68.6 million.

Diluted Earnings Per Share (EPS) was 13.1 cents for the reported quarter (2Q 2014: 12.2 cents). For the six months ended 30 June 2015, diluted EPS was 24.9 cents (1H 2014: 23.4 cents).

Financial Position and Cashflow

During the quarter, the Group generated cash from operations of S$33.6 million (2Q 2014: S$47.3 million). The Group registered an increase in working capital largely due to higher inventories to meet customers’ requirements and programmes. For the six months ended 30 June 2015, the Group reported S$104.9 million of operating profit before working capital changes and generated cash from operations of S$73.5 million. During the quarter, the Group declared and paid a final tax-exempt dividend of 50¢ per Ordinary Share amounting to S$138.0 million. As at 30 June 2015, the Group had cash and cash equivalent of S$329.8 million (4Q 2014: S$393.3 million) and remained net cash positive at S$155.0 million.

As at 30 June 2015, Equity attributable to owners of the Company was S$1,822.9 million (4Q 2014: S$1,862.3 million) and Net Asset Value per share was S$6.60 (4Q 2014: S$6.78).

Outlook

The economic landscape, in which our customers operate, remains challenging with elements of uncertainty. This is reflected in the generally cautious outlook of our customers. The Group remains focused on sustaining operational excellence and driving innovation; and continues to strengthen its strategic capabilities and competencies in several domain areas and market verticals.

With strong sustaining operational excellence and broadening of innovation thrusts throughout the organisation, the Group can expect to capture more market share with its existing customers and to win new programmes and customers.

About Venture (www.venture.com.sg)

Venture was founded in 1984 as a global electronics services provider. Today, it is a leading global provider of technology services, products and solutions with established capabilities spanning marketing research, design and development, product and process engineering, design for manufacturability, supply chain management, as well as product refurbishment and technical support across a range of high-mix, high-value and complex products.

Headquartered in Singapore, the Group comprises 40 companies with global clusters in Southeast Asia, Northeast Asia, America and Europe and employs over 12,000 people worldwide.

The Group has built know-how and intellectual property with domain expertise in printing and imaging; networking and communications devices; handheld interactive scanning and computing products; advanced storage systems and devices; financial-related equipment and technology; Industrial, power and energy-related products; test and measurement equipment and instrumentation; medical and healthcare devices and life science equipment. The Group manages a portfolio of more than 5,000 products and solutions and continues to expand into new product categories through its collaboration with existing and new customers.

In its pursuit to create unparalleled enterprise excellence across design and engineering, manufacturing and distribution, Venture has forged numerous meaningful partnerships and alliances. As it assumes a key role in the enterprise chain, Venture will continue to tap the knowledge and best-in-class capabilities of global enterprises for breakthrough innovations.

Venture is a strategic partner of choice of over 100 global companies including Fortune 500 corporations and ranks among the best in managing the value chain for leading electronics companies. It is committed to enhancing its competencies through further investments in technologies, market access capabilities and its people. It stands poised, to provide the leading edge and remain relevant in a constantly changing and evolving world.