Revenue for the period rose 6.3% to S$118.1 million as demand for healthcare products remains strong
TIGER Balm ointment maker Haw Par Corporation reported a 17.1 per cent rise in H1 2024 net profit to S$122 million from S$104.1 million in H1 2023 in an announcement on Wednesday (Aug 14).
Revenue for the period rose 6.3 per cent to S$118.1 million from S$111.1 million a year prior, as demand for healthcare products remains strong. Higher costs of sales in H1 2024 of S$53.7 million were mainly due to higher overheads and labour costs, a 11.4 per cent increase from S$48.2 million in H1 2023.
As a result, gross margin fell to 54.6 per cent in H1 2024 from 56.7 per cent in H1 2023.
General and administrative expenses in H1 2024 saw a 36.7 per cent decrease in to S$6.2 million from S$9.9 million in H1 2023. Other income in H1 2024 increased 18.4 per cent to S$97.2 million from S$82.1 million in H1 2023. Both helped to offset the increase in cost of sales.
Ongoing economic uncertainty and geopolitical risks may impact Haw Par’s growth prospects. The company also sees increasing cost pressures weighing down operating margins in the next 12 months.
The board of directors declared a S$0.20 dividend per share to be paid on Sept 10, with the books closing on Aug 23.
Shares of Haw Par closed up 0.6 per cent or S$0.06 to S$10.23 on Wednesday.
