Haw Par H2 earnings up 24.5% to S$71.1 million on improved consumer demand

MAINBOARD-LISTED Haw Par Corporation reported a 24.5 per cent rise in net profit to S$71.1 million for the six months ended Dec 31, 2022, from S$57.1 million in the previous corresponding period.

Earnings per share improved to S$0.321 from S$0.258. Revenue in the period rose 14.9 per cent to S$86.6 million, from S$75.3 million.

The group, which engages in investments and leisure activities, among others, attributed the improved performance to an increase in consumer spending on health products as global economies recover from the pandemic.

In particular, its healthcare segment saw improvements in revenue and operating profit, driven mainly by sales recovery in key Asian markets and lower marketing expenses incurred to drive sales, it said in a bourse filing on Thursday (Feb 23).

Revenue from the group’s non-healthcare segment, which comprises the leisure and property divisions, came in 7.7 per cent higher, due mainly to improved performance at Underwater World Pattaya, as the absence of local movement restrictions and the reopening of Thailand’s borders to international visitors have boosted visitorship.

But this was slightly offset by a decrease in revenue from the property division on the back of lower occupancy at the group’s properties, it said.

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

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Looking ahead, the group warned that the slowdown of the global economy may dampen consumer spending. “Nonetheless, with pandemic-related restrictions largely lifted around the world, the return to normalcy will help support the recovery of the group’s operating business.”

The board has proposed a second and final dividend of 15 Singapore cents per share, which will be paid out on May 24, subject to shareholder approval.

Shares of Haw Par Corp closed S$0.26 or 2.5 per cent lower at S$10.29 on Thursday.