Haw Par H1 earnings up 45.8% to S$77.2 million; board proposes S$0.15 dividend

MAINBOARD-LISTED Haw Par Corporation saw its earnings for the first half of FY2022 rising to S$77.2 million on the back of improved consumer demand for healthcare products.

For the 6 months to June 2022, the manufacturer of the Tiger Balm line of products delivered a 45.8 per cent year-on-year jump in net profit from S$53 million in the previous corresponding period.

Earnings per share improved to S$0.349 from S$0.239. Revenue in the period rose 45.1 per cent, from S$65.8 million to S$95.5 million.

The group, which also engages in investments and leisure activities, said in its financial results on Wednesday (Aug 10) that it noted more countries in H1 2022 eased domestic Covid-19 measures and border restrictions as compared to H1 2021 which saw Covid variants causing renewed lockdowns in certain countries - leading to an improvement in consumer demand for healthcare products. 

Gross margin improved from 52.3 per cent to 54.3 per cent as production capacity utilisation improved during the fiscal first half.

Other income increased 44.1 per cent to S$59.6 million due to higher dividend income on strategic investments and higher interest income derived from a rising interest rate environment.

Haw Par had S$599.9 million in cash as at end-June, up from S$574.3 million previously, with net asset value per share also improving to S$14.55 from S$14.51.

The board has proposed a dividend of S$0.15 for H1 FY2022, which will be paid out on Sep 2.

Over the next 12 months, rising inflationary pressures and geopolitical tensions may impact the group’s recovery trajectory, the filing noted.

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Haw Par H2 earnings up almost 100% to S$57.1m; board proposes S$0.15 a share dividend

“The valuation of the group’s strategic investments remains susceptible to uncertainty in the global macroeconomic environment,” it added.

Shares of Haw Par Corp closed 0.1 per cent or S$0.01 higher at S$11.22 on Wednesday.