The tariffs imposed by the US have caused markets to react and businesses to wonder if they can pass on higher costs to their customers even as demand is seen to weaken.
Venture Corp's management should not "lose its nerves" in the face of the evolving tariff situation, according to Wong Ngit Liong, executive chairman of the blue-chip manufacturing services provider.
In the short term, the company's priority is to work with its existing customers to navigate the challenges posed by the tariffs.
In the long-term, Venture Corp will continue to focus on building new differentiating capabilities to stay relevant and impactful in the "ecosystems" it is in, reads the minutes of Venture Corp's AGM held on April 24.
Wong, according to the minutes, was responding to shareholders' questions on the impact of the tariffs on Venture Corp's business.
At the AGM, Venture Corp also took questions from shareholders pondering more dividends over its ongoing share buyback programme, which is being accelerated.
See also: Kimly’s subsidiary buys Yishun Ring Road coffee shop for $11 mil
Back in Nov 2023, Venture Corp announced plans to buy back up to 10 million shares. It bought back 1.7 million shares as at Feb this year and along with its FY2025 earnings in February, Venture says it is speeding up the buybacks.
The most recent share buyback by the company was on April 16 when it paid $10.73 each for 25,000 shares, bringing the total number of shares bought back under the current mandate to more than 2.53 million, or 0.8733% of the share base.
Venture Corp is notable within the investment community for its generous dividend payout that is now at more than 6% yield.
See also: Teo Swee Lian to be new SingPost chairman; Simon Israel stepping down after 9 years
For the whole of FY2025, the company has kept its total dividend payout of 75 cents per share, even as net profit dropped by 9.3% over the previous FY2024. Earnings per share, however, dropped by 8.9% because of a smaller base.
In response, Venture Corp said that its board views both cash dividends and share buybacks as "useful tools" to improve shareholder returns over time.
"The Board regularly reviews both options, considering the company’s performance, market conditions, and shareholder interests.
"The executive chairman acknowledged the suggestion on a special dividend," according to the minutes.
In response to another shareholder similarly asking for a higher level of dividend payout, Wong, according to the minutes, emphasised that Venture Corp’s priority is to grow its revenue and improve profitability, which will support better dividend payouts over time.
Wong cautioned against short-term thinking, noting that Venture's dividend payout has increased steadily since its listing, and urged shareholders to remain focused on long-term growth.
Venture Corp shares closed at $11.33 on May 19, up 0.088% for the day but down 13.71% year to date.
