Hanwell Holdings, a manufacturer and distributor of consumer staples, has reported revenue of $275.4 million for 2HFY2021 ended Dec 31 2021, up 7.8% y-o-y.
However, earnings for the same period was down 13.7% y-o-y to $10.6 million because of higher costs and also absence of government grants all Singapore companies gained in the preceding year.
For the whole of FY2021, earnings dropped by 12% to $23.1 million; while revenue was up 13.1% to $533.3 million.
The higher topline was led largely by its packaging materials business, via its separately listed subsidiary Tat Seng Packaging Group.
Separately, Tat Seng has reported revenue of $367.5 million, up 21.3% over FY2020. However, earnings was basically the same at $29 million, up 0.3%.
Hanwell plans to pay a final dividend of 0.5 cent per share, which will bring total FY2021 payout to 0.75 cent per share.
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For FY2020, under a previous management team, Hanwell paid 0.5 cent.
The company warns that consumer sentiment is now “weary” and that people are careful with their spending. Hanwell will find ways to expand its distribution network.
As for the packaging business, there’s volatility in raw material prices, “which remains at elevated levels”.
There’s also inflationary pressure and rising labour costs will continue to compress operating margins.
Henry Chu, Hanwell’s group CEO says uncertainties remain on the recovery trajectories of the company’s key markets of Singapore, Malaysia and China.
“We remain hopeful that the pandemic situation in these markets will be well-controlled and economic activity will soon normalise,” he adds.
Executive chairman Goi Seng Hui, who took control last year and installed a new management team, describes Hanwell as at a “pivotal juncture of its growth trajectory.”
He believes that with Hawell’s existing strong brands and operational assets as well as an extensive network, it is already well poised for “healthy organic growth.”
“However, we intend to spearhead its expansion further through actively pursuing opportunities such as mergers and acquisitions, joint ventures and strategic alliances.
“The company is ready and our team is geared up to take it forward,” he adds.
Hanwell shares closed on Feb 23 at 42 cents, unchanged for the day and up 2.44% year to date.
Tat Seng, on the other hand, last traded at 77 cents, up 1.32% year to date.
