We are in earnings season again!
Many companies have been reporting their quarterly results over the last few weeks, and some of the news has been good, and some bad. Some companies have reported a bit of both.
Today we’re looking at two companies that have recently reported mixed quarterly results.
First, we have Singapore Post Limited (SGX: S08), or SingPost, a mail and logistics company organised into four major segments of Post and Parcel, Logistics, eCommerce, and Property.
For the quarter ended 31 December 2018, SingPost reported that revenue improved 7.6% year on year to S$441.4 million as a result of higher volume across the group. Yet, quarterly operating profit declined 8.5% year on year to S$42.2 million, largely due to challenges in the U.S. business. Net profit for the quarter jumped 15.6% year on year to S$50.2 million, driven mainly by an exceptional gain on the dilution of interest in 4PX. Excluding exceptional items, underlying net profit was down 7.5% to S$32.9 million.
Year to date, SingPost generated free cash flow of S$73.9 million, down from S$93.6 million last year. This was driven mainly by negative working capital changes, offset slightly by a reduction in capital expenditure for the period. The company declared an interim dividend of 0.5 Singapore cents per ordinary share for the quarter.
Valuetronics Holdings Limited (SGX: BN2) is the other company that reported mixed results recently. It’s an integrated electronic manufacturing service provider headquartered in Hong Kong. It offers a combination of design, engineering, manufacturing, and supply chain support services for electronic and electro-mechanical products.
Ricky Tse Chong Hing, chairman and managing director of Valuetronics, commented on the quarter:
“In Q3FY2019, we saw changes to our product mix with CE revenue decreasing, which was partially offset by increasing ICE revenue. This led to a slight increase in our net profit to HK$59.7 million.”
For the quarter ended 31 December 2018, Valuetronics reported that sales revenue was down 7.5% year on year to HK$729.6 million. Lower revenue was driven by a decline in Commercial Electronics’ revenue, offset by strong revenue in Industrial and Commercial Electronics. Despite lower revenue, gross profit was up by 1.8% year on year to HK$115.8 million as a result of a better sales mix. Similarly, profit attributable to shareholders was up by 2.6% year on year to HK$59.7 million. As of 31 December 2018, the company had HK$754.9 million in cash on the balance sheet and zero debt.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.