Largan’s Q3 gross margin shrinks to lowest in six quarters

Taipei,  Taiwan-based Largan Precision Co., a supplier of camera lenses to Apple Inc., on Thursday reported a gross margin of 65.7 percent for the third quarter of 2020, its lowest in six quarters.

At an investor conference, Largan posted NT$14.787 billion (US$515 million) in third-quarter consolidated sales, a quarterly increase of 17 percent but a decline of 20 percent year-on-year.

Meanwhile, the company reported a gross profit of NT$9.712 billion for the July to September period, and a gross margin of 65.7 percent.

The company’s gross margin — the difference between revenue and cost of goods sold – was below the 69.13 percent reported a year earlier and 68.59 percent in the second quarter of 2020.

Largan also posted after-tax profits of NT$5.868 billion for the third quarter, with an earnings per share (EPS) of NT$43.74, a quarterly increase of 17.6 percent.

In the first nine months of the year, Largan said, it generated NT$40.651 billion in consolidated sales, down 4 percent from a year earlier, with its gross margin at 67.9 percent.

In the nine-month period, the company said, its net profit after tax fell 13 percent from a year earlier to NT$17.576 billion, with its EPS dropping 12.86 percent year-on-year to NT$131.03.

 

Source: Focus Taiwan News Channel

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