Venture Corporation (V03) H2 2024 earnings summary

Executive summary

• FY2024 revenue declined 9.6% year-over-year to S$2,736 million due to softer customer demand, but net profit margin improved to 9.0%, reflecting operational resilience.

• Net profit attributable to owners was S$245 million, down 9.3% year-over-year, with diluted EPS at 84.4 cents.

• Profit before tax margin improved to 11.2% for FY2024, supported by higher interest income and operational efficiency.

• Growth was seen in Networking & Communications and Advanced Industrial tech domains, offset by lower demand in Lifestyle Consumer tech.

• Gross margin remained stable despite lower revenue.

Financial highlights

• Net cash from operating activities reached S$482.5 million for FY2024, with net cash balance up 24.7% year-over-year and zero debt as of 31 December 2024.

• Equity attributable to owners rose to S$2,889.8 million; net asset value per share grew 2.4% to S$10.00.

• Investment revenue increased 51.1% year-over-year, driven by higher net cash and favorable interest rates.

• Diluted EPS for FY2024 was 84.4 cents, down 8.9% year-over-year.

• S$217.5 million in dividends paid during FY2024.

Outlook and guidance

• Short-term business environment remains uncertain, but growth is targeted for 2025, leveraging new business wins in multiple tech domains.

• Investments planned to augment differentiating capabilities and support growth.

• Acceleration of the Share Buyback Plan approved to enhance shareholder returns.