Largan April sales down over 10% from March

Taipei,  Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., said Tuesday its sales for April fell more than 10 percent from a month earlier as the COVID-19 pandemic affected demand.

In a statement, Largan said it posted NT$4.68 billion (US$157 million) in consolidated sales in April, down 14 percent from a month earlier and also down 6 percent from a year earlier.

In the month, 20 megapixel lenses and higher, which command more profit, accounted for 20-30 percent of Largan’s total sales, while 10-20 megapixel lenses made up 40-50 percent, and 8-10 megapixel lenses represented 20-30 percent, the company said.

In the first four months of this year, Largan’s consolidated sales stood at NT$17.898 billion, up 21 percent from a year earlier.

The April sales report echoed an assessment made by Largan at an investor conference held in April, which said the spread of the virus could affect shipments in the second quarter as many clients have turned cautious about their business outlook amid economic uncertainty.

Although the company’s shipments for the second quarter could be affected by the virus spread and traditional slow season effects, Largan said it will continue to pursue its expansion plan.

The company remains upbeat about long-term global demand for sophisticated smartphone camera lenses in which it has taken the lead over its peers, Largan added.

It is building a new plant in Taichung, which is expected to start production by the end of 2023.

The Largan board has proposed issuing a cash dividend of NT$79 per share following its earnings per share of NT$210.70 in 2019, the highest dividend payout in the company’s history.

An annual general meeting is scheduled for June 10 when shareholders will vote on the dividend proposal.

Source: Focus Taiwan News Channel

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