Haw Par Corporation Ltd (SGX: H02) is the maker of the Tiger Balm brand of ointment. In addition to its healthcare arm, it also has strategic stakes in UOL Group Limited (SGX: U14) and United Overseas Bank Ltd (SGX: U11).
One of the things I like to do when analysing a company is study its track record. The past is no guarantee of future performance, but historical information is the most reliable thing we can use as a basis to forecast what lies ahead.
The table below is a snapshot of Haw Par’s important financial metrics from FY2014 (financial year ended 31 December 2014) to FY2018 (financial year ended 31 December 2018):
Source: Haw Par’s 2018 Annual Report
Revenue increased from S$154.2 million to S$237.8 million, up by 40.0% during the period. This translates to a compound average growth rate (CAGR) of 11.6%.
Secondly, profit after tax and minority interest has grown from S$111.7 million in FY2014 to S$179.1 million in FY2018, up by 60.3% during the period. This translates to a CAGR of 12.5% during the period. Similarly, earnings per share (EPS) has grown by a total of 59.2% during the period.
Last but not least, dividend per share (DPS) has grown from S$0.20 cents to S$1.15 during the period, up by 475% during the period. Excluding a one-off special dividend of S$0.85 in FY2018, DPS would have grown by 50%.
In sum, Haw Par delivered a respectable growth in its revenue, profit, and dividend over the past five years.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Haw Par Group Ltd and United Overseas Bank.