Aztech Global has reported earnings of $70.5 million for the FY2024 ended Dec 31, 2024, 29.5% y-o-y lower than the same period last year.
The earnings for the group for 2HFY2024 also saw a decrease of 58.2% y-o-y to $23.9 million, down from the $57.1 million reported in the same period a year ago.
The group’s revenue for the FY2024 came in at $621.6 million, a 30.6% y-o-y decrease due to lower sales in volume of IoT devices and data-communication products attributable to reduced demand from customers in the latter part of 2024.
Revenue for the 2HFY2024 came in 51.1% y-o-y lower at $248.4 million.
Aztech’s earnings per share for the FY2024 is 9.14 cents per share, down from the 12.96 in the same period a year ago.
The firm says that the lower earnings are from an impact of lower revenue and higher depreciation, which was partly offset by higher interest income, net fair value gain on foreign exchange contracts and lower tax expense with a one-time deferred tax provision of $7.1 million in the prior year.
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Net profit margin for the FY2024 came in at 11.3%.
Aztech says that amid rising trade restrictions, geopolitical tensions and global economic uncertainties, it is encountering some demand volatility from customers.
To counter this, it is prioritising to grow its customer base, strengthen relations with existing customers, manage its cost as well as enhance its design and manufacturing capabilities. It will also continue with digital transformation and automation to optimise operational efficiency.
Aztech says that the group’s net cash generated from operating activities increased 35.7% y-o-y to $113.3 million, and as at Dec 31, 2024, net cash position stood at $294.2 million.
The board has proposed a dividend of 10 cents per share, comprising a final ordinary dividend of 3 cents per share and special dividend of 7 cents per share. Including interim dividend of 5 cents per share, the total ordinary dividend declared for the year is 8 cents per share.
The proposed final ordinary and special dividends lifts the total dividend declared for FY2024 to 15 cents per share.
“We are positive about Aztech’s strengths and potential. The return of surplus cash to shareholders through the special dividend demonstrates Aztech's strong cash generation, confidence in its future and commitment to enhancing shareholder value,” says Michael Mun, CEO and executive chairman of Aztech Global .
Shares in Aztech Global closed flat at 72.5 cents on Feb 25.
