Haw Par Corp Q3 net profit rises 19.2% to $26.6 million

SINGAPORE - Haw Par Corp's third quarter net earnings rose by 19.2 per cent to $26.6 million.

Revenue for the three months to Sept 30 increased by 3.9 per cent to $38.9 million.

Profit from operations increased by 17.3 per cent to $28.2 million.

This was mainly contributed by increase in sales from healthcare division and gains on disposal of certain available-for-sale financial assets.

Healthcare division achieved a 10.3 per cent increase in sales to $31.4 million, with a profit contribution of $7.8 million, due to increase in sales.

Leisure division, however, suffered a 24.2 per cent drop in revenue to $3.5 million and a corresponding 21.6 per cent fall in profits to $400,000 compared to the corresponding previous quarter due mainly to weaker tourist sentiments and intense competition.

Property division was affected by lower occupancy during the quarter , which resulted in a 7.9 per cent decrease in revenue to $4 million and a 7.4 per cent drop in profit to $3.1 million.

Earnings per share climbed to 12.2 cents from 10.2 cents previously while net asset value per share firmed to $12.01 compared to $11.18 as at Dec 31.

Haw Par noted that the operating environment will remain volatile amid continuing economic uncertainties and geo-political tensions.

"Leisure division which is facing intense competition, may be particularly vulnerable to additional adverse impact," it said.