Haw Par (H02) H2 2025 earnings summary

Executive summary

• Full-year revenue declined 6.1% to S$230.0m, mainly due to weaker Healthcare sales in Asia amid cautious consumer sentiment and macroeconomic uncertainty.

• Gross margin improved to 56.0% from 54.8% year-over-year, driven by product mix and cost management.

• Operating profit for Healthcare rose 7.2% to S$67.1m despite lower sales, reflecting tighter cost controls.

• Other income increased 17.3% to S$211.3m, primarily from higher dividend income on strategic investments.

• Net profit for the year rose 16.3% to S$265.5m, with EPS at 119.9 cents, up from 103.1 cents year-over-year.

Financial highlights

• Revenue for 2H2025 fell 18.2% to S$103.6m compared to 2H2024, with gross profit down 17.7%.

• Distribution and marketing expenses dropped 16.0% to S$44.3m for the year, reflecting reduced activities.

• Finance expenses decreased 27.0% to S$1.5m despite higher borrowings, due to lower borrowing costs.

• Cash and bank balances increased to S$791.4m, while investments in debt securities fell 69.8% to S$43.3m.

• Net asset value per share rose to S$19.38 from S$18.74 year-over-year.

Outlook and guidance

• Management expects global economic growth to remain uneven, with potential further slowdown if geopolitical tensions escalate.

• Consumer confidence and discretionary spending may be dampened, potentially impacting demand for products and services in the next 12 months.