Frencken Group E28 has announced earnings of $7.1 million for its 3QFY2023 ended Sept 30, a 35.1% y-o-y decline, as the technology sector continued to face challenging business conditions during the quarter.
For the same period, the company reported revenue of $184.4 million, down 5.6% compared to 3QFY2022.
According to Frencken, gross profit margin in 3QFY2023 contracted to 12.4% from 13.7% in the corresponding period last year due to lower revenue, inflationary cost pressures and increased depreciation expenses that arose from capital investments to upgrade and expand its global manufacturing facilities.
For the nine months ended Sept 30, Frencken reported revenue of $535.4 million and earnings of $19.2 million, an 8.4% and 48.2% slump compared to its figures for the corresponding period last year.
On a sequential basis, the company’s revenue and earnings have improved from the first two quarters of the year.
As at Sept 30, Frencken’s cash and cash equivalents stood at $136.1 million.
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The company says it is confident of weathering the current headwinds due to the strength of its balance sheet and diverse exposure to multiple market segments in the high technology industry. “The group will continue to focus on its programs for existing and new customers to ensure it is well positioned for a recovery in the global economy and technology sector.”
Based on current indicators and barring unforeseen circumstances, Frencken expects revenue for its 2HFY2023 to be stable compared to the first half of FY2023.
Shares in Frencken closed 2 cents or 1.82% down at $1.08 on Nov 22.
