Haw Par to give special dividend as profit soars

Haw Par Corp, best known for its famed medicated ointment Tiger Balm, is rewarding its shareholders with generous dividends after a solid year of performance.

It plans to pay a special dividend of 15 cents a share after net profit for the full year soared 54.2 per cent to $183.3 million.

The firm said this was owing to higher contribution from its healthcare business, investment income and associated companies.

Turnover for the 12 months to Dec 31 rose by 16 per cent to $178.8 million, compared with the same period a year ago, mainly owing to the healthcare business.

The division reported revenue increasing 24.8 per cent to $152.6 million because more sales came in from its key markets.

Operating profit soared 42 per cent to $48.1 million because of higher sales, lower materials cost and more favourable exchange rates.

However, the leisure division suffered an 18.4 per cent fall in revenue, owing to fewer visitors.

The firm added: "The segment also recorded an impairment charge of $4.6 million on its fixed assets at Underwater World Singapore."

Haw Par operates the oceanarium in Sentosa.

The firm added that lower occupancy and the subdued property market outlook led to the property segment reporting a fair value loss of $2 million, compared with a $3.1 million gain in the previous year.

Earnings per share for the year was 83.7 cents, up from 54.3 cents a year earlier, while net asset value per share was $11.57 as at Dec 31, down from $12.82 a year earlier.

The firm proposes a special dividend of 15 cents a share and an unchanged final dividend of 14 cents a share.

Haw Par shares closed eight cents higher at $7.63 yesterday.

A version of this article appeared in the print edition of The Straits Times on February 26, 2016, with the headline 'Haw Par to give special dividend as profit soars'. Print Edition | Subscribe