Haw Par (H02) H2 2025 earnings summary

Executive summary

• Revenue declined 6% year-over-year to $230.0 million, mainly due to softer demand in the Healthcare segment, particularly in Asia, while Leisure and Property segments saw modest growth.

• Net profit rose 16% to $265.5 million, driven by improved operating profits, higher investment income, and disciplined cost management.

• Gross margin improved due to favorable product mix and production efficiency; distribution and marketing expenses were reduced by 16%.

• The Board recommends a total dividend of 40 cents per share for FY2025, excluding the prior year's special dividend.

Financial highlights

• Revenue: $230.0 million (▼6% year-over-year).

• Profit from operations and investments before tax: $281.6 million (▲14%).

• Net profit: $265.5 million (▲16%).

• Gross margin improved; other income up 17% to $211.3 million, mainly from higher dividend income.

• Return on equity: 6.2%.

• Cash balance at year-end: $791.4 million.

Outlook and guidance

• Ongoing global economic volatility, geopolitical tensions, and rising costs are expected to create uneven sales performance across markets.

• Focus remains on agility, risk and cost management, and capturing emerging opportunities.

• Healthcare: Continued product innovation and brand strength to drive long-term growth.

• Leisure: Intensified competition in Pattaya; focus on exhibit renewals and targeted promotions to sustain footfall.

• Property: Singapore occupancy may face pressure if economic conditions worsen; Malaysia office market remains subdued.