Haw Par FY2020 earnings fell 34% to $119.8m

Its revenue for the year dropped 54.5% YoY to $111m.

Healthcare company Haw Par has recorded a 34% decline in its profit for FY2020 to $119.8m from the previous year’s $182.2m, the company announced in a filing.

The group’s revenue for the whole 2020 dropped 54.5% YoY to $111m due to weak consumer spending amidst the COVID-19 outbreak.

Meanwhile, cash and cash equivalents increased by 19.1% to $554.4m mainly due to cash dividends received from strategic investments, proceeds from the net sales, and purchase of investments and cash generated from operations. This was partially offset by dividends paid to shareholders and purchase of property, plant, and equipment.

The costs of the company also went down due to the pandemic.

Distribution and marketing expenses decreased by 54.5% to $21m, whilst finance expenses fell 61.2% to $76,000 due to the full repayment of bank borrowings in the first half of 2020.

Haw Par said recovery of the Group’s operating businesses is expected to be slow due to the protracted COVID-19 pandemic crisis and the weak global economy.

“Valuation of the group’s strategic investments will continue to experience volatility from the uncertainties in economic recovery,” it said.