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.
See also: Creative guides for ‘similar level of operating loss’ for 2HFY2025
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.
See also: Fortress Minerals earnings for 1QFY2026 up 7.2% y-o-y to US$2.48 mil
“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.
