Supply chain woes trigger 12.6% decline in Frencken’s Q1 net profit
The decline was also caused by higher selling and distribution.
SGX-listed Frencken Group posted a 12.6% decrease in net profit from $12.8m in the first quarter (Q1) of 2022 to $14.7m in Q1 last year amidst supply disruptions and higher selling prices caused by the unrest in Russia-Ukraine.
In its financial statement, it reported higher prices of materials, freight, and energy in Q1 2022 compared to Q1 2021, prompting Frencken, a machine industry firm, to impose mitigation measures.
As for the revenue, the group recorded 9.3% year-on-year (YoY) growth from $181.53 in Q1 2021 to $198.4m in the same period in 2022.
The increase was driven by the rise in Mechatronics Division’s revenue, which grew by 12.1% YoY to $172.8m. It also accounted for 87.1% of the group’s revenue.
Here are the sales performance of Frencken’s business segments:
− Semiconductor segment’s sales increased YoY 15.5% to $76.1 million
− Medical segment’s sales was relatively stable YoY at $23.0 million
− Analytical & life sciences segment’s sales grew 16.7% YoY to $38.9 million
− Industrial automation segment’s sales increased 8.7% YoY to $31.2 million.