THE firm behind the medicated ointment Tiger Balm sharply lifted earnings in the second quarter, thanks in part to gains from a divestment and equity accounting moves.
Haw Par reported yesterday that net profit for the three months to June 30 came in at $115.9 million, up 87.8 per cent from the $61.7 million recorded a year earlier.
It put the increase down to higher profits from operations, gains from a partial disposal and reclassification of its associate, Hua Han Bio-Pharmaceutical Holdings.
Revenue rose 12.5 per cent, from $45.5 million to $51.2 million, with the gains coming mainly came from healthcare. Earnings per share increased to 52.9 cents from 28.2 cents previously, while net asset value rose to $12.93, compared with $12.82 as at Dec 31.
Due to a difference in reporting timeline, the earnings per share for the period has not incorporated the share of results of he company's Hong Kong-listed associate, Hua Han.
AT A GLANCE
$51.2 million (+12.5%)
$115.9 million (+87.8%)
6 cents (unchanged)
Haw Par's operating costs, equity accounting and gains on associated companies contributed $55.8 million to the net profit increase. This is in contrast to only $2.4 million, the figure for its equity accounting and gains on associated companies in the same period last year.
Haw Par, whose businesses span healthcare, investment, leisure and property, said yesterday that global uncertainty could have a dampening effect on operations.
A weak tourism outlook in Singapore and intense competition are also likely to adversely affect the leisure division of its business. The company owns and operates two oceanariums - Underwater World Singapore in Sentosa and Underwater World Pattaya in Thailand.
Revenue for the leisure division fell 18.4 per cent in the quarter, hit by weaker tourist arrivals and competition for the oceanariums.
Profit from the leisure division decreased 59.4 per cent.
The company's interim dividend remains unchanged at six cents a share. Haw Par shares closed down 11 cents at $8.71. It reported its earnings after markets closed.