SINGAPORE (Aug 7): Haw Par Corporation saw its earnings grow 10.2% to $90.5 million for the 2Q19 ended June, from $82.1 million a year ago, on the back of higher operating profit and dividend income.
This translated to higher earnings per share of 40.9 cents for 2Q19, compared to EPS of 37.2 cents in 2Q18.
2Q19 revenue climbed 9.3% to $70.1 million, due mainly to continued demand for its healthcare products under the Tiger Balm brand.
Other income rose 8.5% to $67.4 million, largely due to a $4.7 million increase in dividend income during the quarter as well as $0.4 million rise in interest income.
Distribution and marketing expenses fell 14.5% to $12.1 million, as a result of lower advertisement and promotion expense during the quarter.
As at end June, cash and cash equivalents stood at $407.3 million.
The group has recommended a first and interim dividend of 15 cents per share for the period, to be paid on Sept 4. This is the same as the dividend paid in the corresponding period last year.
Looking ahead, the group says the valuation of its strategic investments may be affected by equity market volatility amid tensions and uncertainties globally.
In addition, it cautions that its operating businesses may also be affected if the US-China trade conflict is further prolonged amid a slowing world economy.
Shares in Haw Par closed 4 cents lower at $13.80 on Wednesday, before the results announcement.
