Achieva registered 78% increase in net profit to S$1.8 million for first half of 2004
– Group turnover increased 26% to s$296.3 million
– Growth driven by electronic components division
– Group to forge ahead with own brand of ce products under “astone” brandname
Singapore, 12 August, 2004: Mainboard-listed Achieva Limited, one of Asia Pacific’s top knowledge-based, value-added distributors and solutions providers focusing on electronics and IT-related products, has achieved a 78% increase in profit after tax and minority interests to S$1.8 million for the first half of FY2004, up from S$1.0 million in the corresponding period last year.
The improvement in Achieva’s net profit was mainly attributable to improved sales in the electronics components division, a turnaround in the PC peripheral division and better contributions from associated companies. Profits from the electronics components division for the first half of 2004 was S$4.4 million, nearly doubled that of the previous period on the back of better demand. The PC peripherals division recorded a profit before accounting for provision of doubtful debts and stock obsolescence of S$1.1 million, versus a loss of S$1.1 million for the first half of 2003. Loss after provisions was S$1.5 million for the first six months compared to S$1.6 million previously.
Turnover increased — up by 26% to S$296.3 million compared to S$234.2 million in the same period last year. Of the group’s turnover, the electronic components division contributed 31%, up from 21% in the first half of 2003, whilst the PC peripherals division contribution fell from 79% to 69% in the first half of 2004.
The Group’s electronic components division contributed S$93 million in the first six months of 2004, an increase of 93% from S$48 million last year. Of the S$93 million turnover, the Components South Asia and North Asia Group recorded an increase of 73% and 127% in turnover to S$52 million and S$41 million respectively. PC peripherals division recorded S$203 million, up 9% from S$186 million in the first half of 2003. The increased turnover was largely a result of higher sales in China and Philippines, though offset by lower sales in Malaysia.
Group EPS for first half of 2004 was 0.36 cents compared with 0.22 cents per share for the same period last year. Group NAV went up to 12.41 cents as at 30 June 2004 from 12.23 cents as at 31 December 2003.
Commenting on the results, Mr. Henry Lim, President and CEO of Achieva said, “We have been taking active steps to streamline and reorganise the Group’s activities to focus on our core semiconductor components business which has been profitable. We are also benefiting from our earlier efforts in developing the North Asian market, especially with the robust growth in the North Asian semiconductor markets.”
He added, “Going forward, our electronic components division will be the key growth driver for the Group, with the division’s revenue likely to surpass that of PC Peripherals division in the future. We intend to embark on a rapid expansion strategy in North Asia and India. We will also continue to enhance our market share in ASEAN and in existing markets, and expand our product portfolio with higher value-added solutions. For our PC peripherals division, in addition to the current range of products, we will enhance our product portfolio with digital consumer and lifestyle products. We introduced our own Astone brand of portable lifestyle CE products this year, and in the 2nd Quarter, we experienced encouraging sales of S$1.2 million. In the meantime, we will also continuously review our operations with a view to cut costs and deliver value.”
Achieva set up a new distribution office in South Korea. The Group clinched seven new distributorships in the first half of 2004. These include Maxtor, Gigabyte, MSI, LG, Sapphire, Winbond and DGS.
The Group remains optimistic about the operating results for the full year of FY04.
Listed on the Mainboard of the Singapore Exchange since June 2000, Achieva is one of Asia-Pacific’s top value-added distributors and solutions providers focusing on electronics and IT-related products. With corporate headquarters in Singapore and its operations spanning the Asia-Pacific region, the Achieva Group represents in excess of 30 product brands. Currently, the Group has a staff strength of about 350, serving a growing customer base of about 6,000 in the Asia-Pacific region. The Group’s business operations are grouped under two product sectors or groups – PC peripherals, parts and software; and electronic components.