SINAGPORE (Feb 26): Haw Par Corporation announced FY17 earnings increased by 0.4% to $125.5 million compared to $125.0 million in FY16.
Revenue for the full year ended Dec 2017 came in at $222.8 million, 10.5% higher than $201.6 million last year, due to better performance at the group’s healthcare and property segments.
The healthcare segment saw a 14.3% y-o-y increase in revenue to $201.7 million due to the launch of new products.
Revenue from the property and leisure segments decreased 16.5% due mainly to the closure of Underwater World Singapore in June 2016, but partially offset by an increase in revenue from the property segment due to improved occupancy.
Cost of sales increased by 5.9% y-o-y to $80.6 million, bringing gross profit for FY17 to $142.1 million, 13.3% higher than $125.5 million in the previous year.
Distribution and marketing expenses increased by 26.5% to $52.3 million compared to $41.4 million a year ago, due to increased advertising and promotional efforts for the group’s new healthcare products.
General and administrative expenses were 30.7% higher at $15.7 million from $12.0 million last year, due to unfavourable exchange losses.
Fair value changes on investment properties were 35.3% lower at $0.63 million compared to $0.98 million in FY16.
The group has proposed a second and final tax-exempt (one-tier) cash dividend of 10 cents per share, which will be payable on May 17.
On the outlook, the group expects the appreciation of SGD against the USD may affect the competitiveness of its healthcare business.
In addition, the group expects its net asset value to be impacted by fluctuations in market valuation of its strategic equity investments.
Shares in Haw Par closed flat at $12.10 on Monday.
