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2 HAW PAR CORPORATION LIMITED ANNUAL REPORT 2013 3
and stabilised raw material prices
improved margins on higher sales,
boosting profts by 51% to $25.9m.
The Leisure Division performed
satisfactorily even as new tourist
attractions came on-streamin Singapore
and in the neighbouring countries.
In Singapore, emphasis was placed
on different customer segments.
Underwater World Pattaya continued
to enjoy good patronage.
Dividend
The Board recommends a second and
fnal tax exempt (one-tier) dividend
of 14 cents per share. Together with
the interim dividend of 6 cents paid
last September, the total dividend
per share for fnancial year ended
31 December 2013 is 20 cents per
share. On a higher share base due
to the bonus issue distributed last
year, this represents a 10% increase
in dividend payout in absolute terms.
2014 Business Outlook
and Strategy
Costs and competitive forces will
continue to exert pressure on our
margins. The Group will continue to
look for new investments and more
productive ways of managing its
businesses. The Healthcare Division
is geared to ride on growth in key
Asian markets but the pace will be
more subdued if the overall economic
sentiments turn cautious. The Leisure
Division will review expansion plans
at UnderwaterWorld Pattaya to attract
more visitors. Underwater World
Singapore will continue to maintain
its unique positioning to provide an
affordable venue for tourists and locals,
even in the face of severe competition.
Acknowledgement
On behalf of the Board, I would like to
thankour customers, business associates
and shareholders for their continuing
support and, management and staff
for their hard work and dedication.
I would also like to express my deepest
gratitude to my fellow Board members
for their wise counsel and guidance
in the past year.
WEE CHO YAW
Chairman
PROFITS AFTER TAX
107.9M
PROFITS FROM OPERATIONS
96.6M
In 2013, the American and European
economies improved, while in Asia,
the growth momentum continued
albeit at a slower pace. Infationary
pressure eased on the commodities
front, althoughwage pressure remained
high amidst tight labour markets.
Proft from operations increased 14%
to $96.6m (2012: $84.5m) due to
higher dividends and lower overheads.
Earnings for the fnancial year ended
31 December 2013 decreased 10%
to $107.9m, mainly from lower fair
value gains on investment properties.
The decline in earnings was also partly
due to exceptional one-off gains by
associated companies in 2012.
The Healthcare Division ended the
year with 13%higher sales of $103.5m
(2012: $92.0m), fuelled by growth in
certain key markets in Asia. Profts
fromHealthcare in 2013 improved to
$25.9m (2012: $17.2m). The Leisure
Division managed to achieve revenue
of $20.5mwhich was 32% lower than
in the previous year, due to intensifying
competition. The Property Division
enjoyed stable occupancy rates and
turned in a proft of $13.4m (2012:
$12.9m).
Highlights of Operations
The Healthcare Division recorded
sales exceeding $100m, aided by
rising consumerism, especially inAsia.
Tiger Balm product offerings stretched
beyond its traditional ointment to pain
relief in different application formats
and reached target audience around
the world. From children to active
adults and the elderly, our product
range includes theTiger Balm plaster,
Tiger BalmMosquito Repellant patch
and Tiger Balm Neck and Shoulder
Rub appealed to our consumers
worldwide. Favourable exchange rates
CHAIRMAN’S STATEMENT