Synnex(2347) today announced its financial results for the first quarter of 2025, posting consolidated revenue of NT$91.4 billion, a 12% year-over-year decline. After-tax net income was NT$1.8 billion, down 17% from the prior year, with earnings per share (EPS) of NT$1.10. The Board of Directors has also approved the 2024 dividend policy, declaring a cash dividend of NT$4.0 per share, representing a payout ratio of 72% and a dividend yield of 5.6% based on the latest closing price.

The revenue decline was mainly due to a high base in the Semiconductor Business. In Q1 2024, this segment surged 52% on strong customer restocking, reaching a record NT$50 billion. With demand normalizing this year, Q1 2025 revenue fell 27% year-over-year but still marked the highest first-quarter result in the segment's history, excluding last year. Meanwhile, the Enterprise Solution Business continued to deliver solid growth, supported by ongoing digital transformation and increased enterprise investment in IT infrastructure. Revenue rose 9% year-over-year, achieving the second-highest Q1 result on record. The IT Consumer and Mobile Device segments remained under pressure amid soft market sentiment and weak consumer confidence, posting year-over-year revenue decline of 3% and 2% respectively.

On the profitability side, a higher revenue mix from the Enterprise Solution Business helped lift the gross margin by 11 basis points to 4.37%. However, gross profit declined NT$430 million or 10% to NT$4.0 billion due to lower total revenue. Operating expenses were flat year-over-year, resulting in operating income of NT$1.9 billion, a decline of NT$450 million or 19%. Investment income rose 20%, driven by strong performance from joint ventures in Thailand, Vietnam, India, and the Middle East & Africa (MEA). With inventory levels reduced, working capital requirements fell by NT$13.2 billion compared to the end of 2024, contributing to a 25% year-over-year drop in net interest expenses. Pre-tax profit was NT$2.4 billion, down NT$320 million or 12%, while after-tax net income came in at NT$1.8 billion, down NT$370 million or 17%. EPS was NT$1.10.

Looking ahead to the second quarter, Synnex will continue to prioritize the expansion of its high-value Enterprise Solution Business and actively manage volatility in the semiconductor sector. The company remains focused on driving digital transformation, improving operational efficiency, expanding its MSP portfolio, and optimizing supply chain operations to deliver greater value to customers.