Brisk business at healthcare division lifts earnings of Haw Par Corp

Haw Par Corp has registered a 9.1 per cent rise in third quarter net profit to $22.4 million.

Revenue inched up 1.9 per cent to $37.5 million for the three months to Sept 30.

Profits from operations increased by 7 per cent to $24.1 million, mainly contributed by higher turnover at the healthcare division.

This division reported a 13 per cent increase in sales to $28.4 million due to strong consumer demands in certain key markets for traditional products and launch of new products in new territories.

With an increase in revenue, coupled with higher gross margin, the healthcare division achieved profits of $7.3 million, an increase of 74 per cent.

The leisure division did not fare as well, with revenue and profits decreasing 37 per cent and 79 per cent to $4.7 million and $600,000 respectively, due to intense competition.

With higher rental rates, the property division reported revenue of $4.4 million and profits of $3.4 million, up 7 per cent and 6 per cent respectively.

Earnings per share climbed to 10.2 cents from 9.4 cents previously while net asset value per share increased to $10.90 compared to $10.34 as at Dec 31.

Except for leisure division which would continue to face intensifying competition from newer and larger attractions, there are no other known factors or events that may affect the group in the next reporting period and the next 12 months, Haw Par noted.