Haw Par FY15 profit grows 54.2% to S$183m on healthcare, investment sale gains

HAW Par Corp's net profit rose 54.2 per cent to S$183.3 million, or 83.7 Singapore cents per share, in 2015 on the strength of its healthcare business and the partial sale of a Chinese unit, the maker of Tiger Balm ointments announced on Thursday after the market closed.

For the year ended December, the company is proposing a dividend of 29 Singapore cents per share, comprising a 14-cent-per-share final dividend and a 15-cent-per-share special dividend.

Revenue rose 16 per cent to S$178.8 million during the year, with only the healthcare business turning in any topline growth. Healthcare operating profit increased by 42 per cent to S$48.1 million during the year.

Profit from investments also increased by 32.3 per cent to S$88.4 million, largely on the back of exceptional gains after Haw Par sold a substantial stake in associated company Hua Han Bio-Pharmaceutical Holdings.

Property profit shrank 20.3 per cent to S$9.9 million, while the leisure business fell into the red with a S$4.3 million loss compared to a year-ago profit of S$2.5 million. Haw Par took a S$4.6 million impairment charge on the fixed assets at Underwater World Singapore during the year.

Haw Par described the operating environment over the next 12 months as "challenging".

"The outlook for healthcare remains positive but leisure and property will likely suffer further setbacks," Haw Par said. "The volatile investment environment will affect fair values and income from investments."