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Haw Par 2Q earnings rise 7.3% to $51.9 mil

Stanislaus Jude Chan
Stanislaus Jude Chan • 2 min read
Haw Par 2Q earnings rise 7.3% to $51.9 mil
SINGAPORE (Aug 11): Haw Par Corporation announces a net profit of $51.9 million for the 2Q ended June, up 7.3% from net profit of $48.4 million a year ago.
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SINGAPORE (Aug 11): Haw Par Corporation announces a net profit of $51.9 million for the 2Q ended June, up 7.3% from net profit of $48.4 million a year ago.

Revenue grew 15.0% to $60.5 million in 2Q17, from $52.6 million a year ago.

This was mainly due to higher sales from its healthcare business as demand for Tiger Balm products grew following the expansion in distribution network and increase in marketing activities.

The revenue growth was partially offset by lower revenue from its leisure segment.

Distribution and marketing expenses increased by 18.1% to $14.6 million, mainly due to higher marketing expenses to drive sales growth.

General and administrative expenses climbed 13.6% to $3.8 million, mainly due to higher staff costs and unfavourable foreign exchange differences in 2Q17.

As at end June, cash and cash equivalents stood at $329.2 million.

Haw Par Corp has recommended a first and interim dividend of 10 cents per share, payable on Sept 6, 2017.

Looking ahead, the group says its investments and net assets are likely to continue to be affected by the volatility of global financial markets.

It adds that the key markets where its healthcare segment operates will depend on continued tourist inflows and geopolitical stability to sustain growth.

Shares of Haw Par Corporation closed 7 cents lower at $10.72 cents.

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