Haw Par (H02) H1 2024 earnings summary

Executive summary

• Revenue rose 6.3% year-over-year to S$118.1m, driven by robust demand for healthcare products.

• Net profit increased 17.1% to S$122.0m, with EPS at 55.1 cents, up from 47.0 cents.

• Other income surged 18.4% to S$97.2m, mainly from higher dividends and interest income.

• Gross margin declined to 54.6% from 56.7% due to higher overheads and labor costs.

Financial highlights

• Cost of sales increased 11.4% to S$53.7m, outpacing revenue growth.

• General and administrative expenses dropped 36.7% to S$6.2m, reflecting normalization after a one-off donation last year.

• Finance expenses rose 49.8% to S$1.0m due to higher borrowings and interest rates.

• Cash and bank balances fell 15.9% to S$482.9m, mainly from increased investments and dividend payouts.

• Investments in debt securities grew 80.3% to S$335.2m, reflecting additional purchases of Singapore Government Treasury Bills.

Outlook and guidance

• Global economic uncertainty and geopolitical risks may impact business growth.

• Rising cost pressures are expected to continue affecting operating margins.