Venture Corporation has reported a net profit of $60.1 million for the 1QFY2024 ended March 31, 18.3% lower than the net profit of $73.6 million in the corresponding period the year before.
Revenue for the quarter fell by 18.9% y-o-y to $666.7 million from the revenue of $821.7 million the year before. The drop in the quarter’s revenue was due to lower customer demand over amid some remaining headwinds, which, according to Venture, are beginning to taper off.
The group’s life sciences sector and certain segments of its network and communications market still saw some destocking in the 1QFY2024.
Despite the lower earnings, net profit margin (NPM) remained flat y-o-y at 9.0%.
During the 1QFY2024, Venture reported $132.9 million in net cash generated from operating activities. The group’s net cash position improved to $1.19 billion as at March 31, with zero borrowings.
Net asset value (NAV) per share stood at $10.06 as at March 31, up from $9.90 as at March 2023.
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In its results presentation, the group says it is targeting for its revenue to improve q-o-q in the 2QFY2024. It also expects overall revenue for the 2HFY2024 to be higher on a h-o-h basis.
The revenue growth will be achieved through four means: growing with the group’s customers, onboarding new customers, mitigating geopolitical risk and better demand.
Shares in Venture closed 25 cents higher or 1.76% up at $14.46 on May 3.
