10 Things That Investors Should Know About Venture Corporation Ltd’s Latest Results
Last week, Venture Corporation Ltd (SGX: V03) announced its financial results for the second quarter ended 30 June 2018. The company is an electronics manufacturing services provider with expertise in a wide range of activities.
Here are 10 things investors should know from the latest earnings announcement:
1. Revenue for the quarter went down 6.0% year-on-year to S$952.3 million.
2. Profit before tax, however, rose 36.3% year-on-year to S$115.2 million.
3. Profit attributable to shareholders was up by 40.2% year-on-year to S$97.9 million.
4. Consequently, Venture’s diluted earnings per share improved 37.7% year-on-year to 33.6 cents.
5. Profit before tax margin grew from 8.3% last year to 12.1% in the latest quarter.
6. As at 30 June 2018, the company had S$688.6 million in cash on the balance sheet and S$41.7 million in loans. This gives Venture a net cash position of S$646.9 million, down from S$721.6 million as at 31 December 2017.
7. Operating cash flow for the quarter was S$125.5 million, up from S$102.5 million last year. The improvement in operating cash flow was mainly due to improvement in profitability.
8. Working capital grew by S$20.6 million year-on-year to S$924.5 million, mainly due to the increase in inventories and decrease in trade payables, offset partially by the decrease in trade recievables.
9. The company declared an interim dividend of 20 cents per share for the quarter.
10. Venture provided the following outlook:
“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.”