Venture Corp: Not aware of any reason for sharp share price drop

Singapore five-dollar note Photo by Leslie Shaffer

Venture Corp. said late on Thursday that it wasn’t aware of any reason for its share price’s 5.69 percent drop to S$15.90 during the trading session.

That was in response to an Singapore Exchange Securities Trading (SGX-ST) query about the unusual price and volume movements.

Volume during the session was 2.652 million shares, compared with the 30-day average volume of 1.57 million shares, according to Bloomberg data.

Venture noted that in early August, it released its second-quarter and six-month financial statements and announced an interim dividend of 20 Singapore cents a share, with the payment date set for 19 September.

However, in the U.S. on Wednesday, the U.S. Food & Drug Administration proposed restrictions on e-cigarettes to counter what it called an “epidemic” of use by youth.

Venture is believed to be a manufacturer for Philip Morris’s IQOS smokeless tobacco device. Philip Morris describes IQOS as a hybrid between “analog” and e-cigarettes.

Philip Morris has been seeking approval to launch IQOS in the U.S. and the FDA’s move may harm sentiment.

In July, Credit Suisse estimated IQOS made up 12-18 percent of group revenue and nearly 38 percent of revenue growth last year.

The contract manufacturer reported in August that its second quarter net profit rose 40.2 percent on-year to S$97.9 million, despite lower revenue, as it posted lower expenses.

Revenue for the quarter fell 6.0 percent on-year to S$952.3 million, while other operating expenses fell by 13.2 percent on-year in the second quarter to S$28.29 million, from S$32.6 million in the year-earlier period, Venture said at the time.

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