Venture Corporation (V03) H2 2024 earnings summary

Executive summary

• FY2024 revenue was S$2,736 million, down 9.6% year-over-year due to softer customer demand, with net profit margin improving to 9.0% from 8.9%, reflecting operational resilience.

• Net profit for FY2024 was S$245 million, a 9.3% decrease year-over-year.

• Strong net operating cash flow of S$483 million was generated in FY2024.

• Board proposes a total dividend of 75 cents per share for FY2024 and has approved acceleration of the share buyback plan.

• Growth was seen in Networking & Communications and Advanced Industrial tech domains, offset by lower demand in Lifestyle Consumer tech.

Financial highlights

• Revenue for 2H 2024 was S$1,351.7 million, down 2.3% sequentially from 1H 2024.

• Net profit for 2H 2024 was S$121.4 million, down 1.8% from 1H 2024.

• Profit before tax for FY2024 was S$306.6 million, down 7.3% year-over-year; PBT margin improved to 11.2% from 10.9%.

• Diluted EPS for FY2024 was 84.4 cents, down 8.9% year-over-year.

• Net asset value per share grew 2.4% to S$10.00 as at 31 December 2024.

Outlook and guidance

• Short-term business environment remains uncertain, but growth is targeted for 2025, leveraging new business wins in multiple tech domains.

• Investments planned to augment differentiating capabilities and support growth.

• Confident in navigating complexities through resilience and strong partner relationships.