Venture posts 1H21 net profit rose nearly 8 percent as margins improved

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Venture Corp. reported Friday its first half net profit rose 7.6 percent on-year to S$140.40 million on improved margins, citing differentiated business models and value propositions.

Revenue for the January-to-June period increased 4.9 percent on-year to S$1.43 billion on strong customer orders, the contract manufacturer said in a filing to SGX.

The net margin for the period came in at 9.8 percent compared with 9.6 percent in the year-ago period, Venture said.

“Venture’s provident strategy to set up working taskforces in collaboration with a strong supportive network of global partners, business associations and government authorities had positioned the Group well to mitigate most challenges precipitated by Covid-19 pandemic to deliver on our commitment to customers,” the company said in the statement.

Venture declared an interim dividend of S$0.25 a share, unchanged on-year.

The company’s outlook was largely upbeat, with some caveats.

“Based on customers’ feedback, demand outlook for Venture over the next 12 months appears ebullient,” Venture said. “In the fast-growing Life Science Technology and Genomics domain, where Venture has gained good traction over the years, the group sees sustained expanding demand for innovative products and services.”

But it added, full fulfillment of customer orders depends on availability of parts and components.

“Venture has put in place multiple strategies to improve its access to raw materials and enhance its assurance of supply. Some of these strategies include redesigning parts and components to overcome shortages,” the manufacturer said.