Haw Par Corporation has revealed a 7.3% in net profit in the second quarter of this year due to a rise in demand for its Tiger Balm products. This followed an increase in marketing activities and expansion in its distribution network, according to its recent financial report.
Distribution and marketing expenses increased 18.1% to SG$14.6 million due to higher marketing expenses to drive sales growth.
Overall, the group’s revenue increased 15% to SG$60.5 million mainly due to higher sales from its healthcare segment, which was also partially offset by lower revenue from its leisure segment. Gross profit rose 23.8% with higher sales and absence of one-off costs incurred. Meanwhile, general and administrative expenses increased 13.6% to SG$3.8 million due to higher staff costs and unfavourable exchange differences in the quarter.
Last year, Haw Par closed Underwater World Singapore after 25 years of service. In a SGX filing, the group said that the closure is “not expected to be material to the group’s earnings or net asset per share for the financial year ending Dec 31, 2016.”
The attraction ceased operations ahead of the expiry of its lease to facilitate the transfer of the endangered attraction animals to their new home in Chimelong Ocean Kingdom in Zhuhai, China. UWS saw an increase in competition over the years, with the arrival of Genting’s Resort World Sentosa on the island which in turn added a slew of attractions from an integrated resort, theme park Universal Studios Singapore and competition attractions such as SEA Aquarium and Marine Life Park.