Frencken H1 net profit falls 3.4% to S$19.3 million

[SINGAPORE] Tech solutions provider Frencken Group on Thursday (Aug 13) reported a 3.4 per cent decline in net profit to S$19.3 million for the first half ended Jun 30, from S$19.9 million a year earlier.

This comes as administrative and general expenses widened 9.9 per cent year on year to S$32.6 million, from S$29.7 million.

Additionally, the group’s selling and distribution expenses also rose by 1.9 per cent to S$6.7 million, from S$6.6 million in H1 FY2025. Income tax expenses grew 12.4 per cent year on year to S$5.4 million, from S$4.8 million.

Revenue dipped 0.8 per cent to S$427.8 million, from S$431.4 million in the year-ago period.

By business segments, revenue from the mechatronics division, which accounts for the bulk of group sales, eased 1.5 per cent to S$383.4 million in H1.

Within the division, revenue from the semiconductor segment fell 1.1 per cent to S$213.3 million; revenue from the analytical life-sciences segment dropped 13.7 per cent to S$75.3 million.

This was partially offset by revenue gains in the medical segment (up 10.1 per cent at S$70.5 million) and industrial automation (up 9.8 per cent at S$18.4 million).

Earnings per share stood at S$0.045, down from S$0.0467 a year earlier.

Frencken expects its H2 revenue to be higher than both H1 and the corresponding year-ago period.

The group also expects revenue and net profit for FY2026 to be higher than for FY2025, barring “any adverse changes in external environment and volatility in foreign-exchange markets”.

It added that based on its current trajectory and core business momentum, it “envisages that it could cross the S$1 billion annual revenue mark by 2028, if not earlier”.

The counter ended 4.1 per cent or S$0.11 higher at S$2.79, prior to the release of results.