Haw Par (H02) H2 2024 earnings summary

Executive summary

• Revenue grew 5% year-over-year to $244.8 million, driven by strong demand for Healthcare products and higher investment income.

• Net profit increased 5% to $228.3 million, with earnings per share rising to 103.1 cents.

• Operating profit from Healthcare declined 4% due to margin pressures from higher costs, while Leisure and Property segments saw modest growth.

• A special dividend of $1.00 per share and a final dividend of 20 cents per share were recommended, bringing total dividends for the year to $1.40 per share.

Financial highlights

• Revenue: $244.8 million (+5% year-over-year); Net profit: $228.3 million (+5%).

• Gross margin declined from 58% to 55% due to increased operating and freight costs.

• Dividend income rose 9% to $149.1 million; interest income up 16%.

• Total assets reached $4.3 billion; shareholders' funds at $4.1 billion.

• Cash reserves increased to $745.8 million (2023: $574.0 million).

Outlook and guidance

• Anticipates a challenging year ahead with risks from trade protectionism, inflation, and subdued consumer spending.

• Plans to strengthen cost discipline, improve productivity, and leverage economies of scale.

• Focus on product innovation and expanding Tiger Balm's market presence.

• Property segment may face headwinds if business sentiment weakens.