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Haw Par's Q3 profit jumps 21.3% on healthcare, investment growth
HAW Par Corp's net profit for the third quarter rose 21.3 per cent as growth in the healthcare and investment segments overcame losses from its tourist attractions, the property investor and Tiger Balm ointment maker announced on Friday after the market closed.
Net profit for the three months ended Sept 30, 2016, increased to S$42.4 million, or 19.3 Singapore cents per share. Nine-month net earnings stood at S$107.8 million, or 49.2 Singapore cents per share, down 34.4 per cent.
Q3 revenue increased 3.3 per cent to S$49.7 million as healthcare sales rose 7.1 per cent to S$44.7 million.
Healthcare operating profit increased by 27.5 per cent to S$16.7 million as the group managed to secure better margins.
Profit from investments increased by 15.8 per cent to S$25.3 million, mostly due to the absence of year-ago disposal losses.
Property profit improved by 31.9 per cent to S$3.4 million amid better occupancy rates.
The leisure business, which included the now-shut Underwater World Singapore, incurred a loss of S$28,000 due to residual costs at the closed-down attraction. Underwater World Pattaya, however, remains profitable, Haw Par said.
Looking ahead, Haw Par said its investments will continue to be affected by volatile equity markets. Demand for its healthcare products remains "relatively healthy", although subdued economic conditions in key markets could have a dampening effect.
Committed tenancies are expected to help preserve a stable income stream for properties despite weak demand for commercial office space.