Haw Par posts 14.2% rise in H2 profit, proposes final dividend of S$0.20 per share

[SINGAPORE] Tiger Balm maker Haw Par Group’s profit for the six months ended Dec 31, 2025 rose 14.2 per cent to S$121.3 million.

The company has proposed a second and final dividend of S$0.20 per ordinary share, which is expected to be paid on May 21, subject to shareholder approval.

Haw Par’s revenue for the half-year declined 18.2 per cent to S$103.6 million. This was primarily due to weaker healthcare sales, as consumer confidence softened amid an uncertain macroeconomic environment.

Conversely, the company recorded lower expenses during the period. The cost of sales fell 18.9 per cent to S$46.3 million, in line with the lower revenue.

Distribution and marketing expenses shrank by 40.3 per cent to S$15.4 million, mainly driven by reduced activities for the healthcare segment. Finance expenses also dropped by 29.1 per cent, largely due to lower borrowing rates.

As a result of these factors, Haw Par’s gross margin remained stable at 55.3 per cent in the second half of 2025, sitting slightly above the 55 per cent margin in the corresponding period of the preceding year.

For the full year, Haw Par’s profit rose 16.3 per cent to S$265.5 million. This bottom-line growth occurred despite a 6.1 per cent decrease in full-year revenue to S$230 million, which was dragged down by the drop in demand for healthcare in the second half of the year.

Its healthcare segment revenue contracted 6.9 per cent to S$210.4 million. Haw Par attributed this drop primarily to lower sales in Asia, noting that consumers have become increasingly cautious in their spending amid weaker sentiment in certain markets.

However, tighter cost management on operating expenses helped improve the operating margin. Consequently, the healthcare segment’s operating profit grew by 7.2 per cent to S$67.1 million in 2025.

Revenue from its other segments, which comprise leisure and property, improved by 4 per cent to S$19.6 million. This growth was supported by better performance at Underwater World Pattaya, which welcomed more visitors during the year; the group’s Singapore investment properties enjoyed improved average occupancy.

The higher revenue translated to a 3.7 per cent increase in operating profit for these segments, rising to S$10.6 million.

Haw Par expects global economic growth to remain uneven, and to slow down even further if geopolitical tensions escalate. The company stated that this uncertainty “may dampen consumer confidence and discretionary spending, potentially affecting demand for the group’s products and services”.

Shares of Haw Par Group rose 1.9 per cent to close S$0.31 higher at S$16.70 on Friday, before the results were announced.