Hanwell Holdings has more than tripled its earnings to $22.2 million for the FY2020 ended December, compared to earnings of $6.1 million a year ago.

While the higher earnings were mainly attributable to the higher other income of $6.1 million during the period, 107.7% higher y-o-y due to the grants received from the government, the group saw a 2.2% y-o-y increase in FY2020 revenue of $471.4 million.

The higher revenue was mainly due to higher revenue achieved by the Singapore Consumer Business, which observed higher demand for its products such as rice and tofu during the year.

Growth in the China sector of the packaging business (Tat Seng Group), driven by 4.8% y-o-y higher sales volume and the stronger RMB also contributed to the higher full-year revenue.

Gross profit for the FY2020 grew 15.6% y-o-y to $109.6 million, due to higher revenue and lower raw material costs for its packaging business.

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As such, gross profit margin (GPM) stood 2.69 percentage points higher at 23.26% for the FY2020.

Impairment losses of trade and other receivables fell 23.8% y-o-y to $0.63 million due to writeback of expected credit loss for its packaging business in FY2020.

Other operating expenses fell by 96.2% y-o-y to $0.23 million due to loss incurred on disposal of asset held for sales the year before.

Cash and cash equivalents as at end-December stood at $152.3 million.

For the FY2020, the group has proposed a final dividend of 0.5 cent per share, higher than the final dividend of 0.25 cent per share the year before.

Looking ahead, Hanwell anticipates a negative impact on its Consumer Business in the FY2021 due to the additional round of lockdowns in Malaysia.

The ongoing Covid-19 pandemic is also expected to weigh down on its business environment, while the increase in raw material prices may impact results of its Packaging Business.

Shares in Hanwell closed 1.5 cents higher or 4.5% up at 35 cents on Feb 25.