Haw Par H1 earnings up 34.9% to S$104.1 million on stronger consumer spending

MAINBOARD-LISTED Haw Par Corporation posted a 34.9 per cent jump in net profit to S$104.1 million for the six months ended Jun 30, 2023, from S$77.2 million in the corresponding period last year. 

Revenue was up 16.3 per cent to S$111.1 million, from S$95.5 million a year ago, buoyed by a growth in consumer spending since the start of 2023, said the group in a bourse filing on Friday (Aug 11). 

H1 earnings per share stood at S$0.47, from S$0.349 in the previous year. 

Haw Par’s healthcare segment, in particular, saw a 17.2 per cent year-on-year increase in revenue to S$101.8 million, on the back of “improved consumer sentiments” in the region.  

Meanwhile, revenue from the group’s non-healthcare segment, which comprises the leisure and property divisions, came in 7.1 per cent higher year on year at S$9.9 million.

The growth in revenue consequently resulted in sales expenses rising 10.5 per cent to S$48.2 million, said the group. Gross margin also rose to 56.7 per cent in H1, from 54.3 per cent in the previous year, due to heightened demand and shipping costs stabilising, it said.

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The board has proposed an interim dividend of S$0.20 per share for H1 FY2023, which will be paid out on Sep 7. 

Moving forward, the group warned that the slowdown of the global economy as well as the high interest rate environment may dampen consumer demand. 

Shares of Haw Par closed at S$9.88 on Friday, up 0.7 per cent or S$0.07, before the announcement.