Semiconductor and technology expert, Frencken Group E28 , has reported earnings of $18.1 million for the 1HFY2024 ended June, a sharp 50.3% y-o-y improvement from $12.1 million in the same period last year.
Earnings per share (EPS) for the period stood at 4.24 cents on a fully diluted basis, a 50.4% y-o-y increase from 1HFY2023’s 2.82 cents.
Group revenue grew 6.2% y-o-y to $372.7 million from 1HFY2023’s $351.0 million. Specifically, revenue from the group’s mechatronics division rose slightly by 7.88% y-o-y in the 1HFY2024 to $327.1 million, while revenue from its integrated manufacturing services (IMS) division dropped 4.3% y-o-y to $44.3 million from the previous $46.3 million.
Meanwhile, gross profit saw a 27.6% y-o-y increase to $55.2 million in the 1HFY2024 from the previous $43.3 million.
Frencken’s gross profit margin also expanded to 14.8% in 1HFY2024 from 12.3% in 1HFY2023, due mainly to better operating leverage.
No dividend was declared for the period.
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Cash and cash equivalents stood at $125.8 million as at June 30.
On its outlook, the group expects to post a higher revenue in the second half, with its semiconductor segment, while its medical, analytical life sciences and automotive segments are all anticipated to register stable revenue. Conversely, revenue from its industrial automation segment is anticipated to decrease.
“The global economy remains uncertain for the second half of 2024. It continues to face several headwinds, including geopolitical risks, elevated interest rates, inflationary pressures, and ongoing conflicts in Ukraine and the Middle East,” notes the group.
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“Nevertheless, Frencken’s robust financial position, diverse exposure to multiple market segments, and entrenched relationships with key customers who are among the market leaders in the high technology industry, give the group confidence to navigate the current challenges.”
Shares in Frencken closed flat at $1.39 on Aug 14.
