Haw Par (H02) H2 2024 earnings summary

Executive summary

• Revenue for the full year ended 31 December 2024 rose 5.5% year-over-year to S$244.8m, driven by higher demand for Healthcare products and improved property segment occupancy.

• Operating profit from Healthcare declined 3.5% despite revenue growth, due to lower gross margin and increased marketing expenses.

• Other income increased 10.2% to S$180.2m, mainly from higher dividend and interest income.

• Net profit for the year was S$228.3m, up 5.4% from 2023.

Financial highlights

• Cost of sales increased 14.0% year-over-year, reducing gross margin from 58.1% to 54.8%.

• Distribution and marketing expenses rose 11.8% to S$52.7m, while general and administrative expenses fell 26.1% to S$17.5m.

• Finance expenses increased 34.1% to S$2.1m due to higher borrowings.

• Earnings per share for the year were 103.1 cents, up from 97.8 cents in 2023.

• Net asset value per share increased to S$18.74 from S$15.70.

Outlook and guidance

• Operating profits and margins may face continued inflationary pressures and uncertain consumption recovery.

• Tariffs, geopolitical tensions, and fluctuating interest rates are expected to increase market volatility and impact investment valuations.