MAINBOARD-LISTED Best World International reported on Tuesday (May 9) a 25.7 per cent decline in net profit on the back of lower revenue.

Net profit for the three months ended Mar 31, 2023 fell to S$20.5 million from S$27.6 million in the year-ago period. On a per-share basis, earnings fell to S$0.0471 from S$0.0521 in Q1 FY22. No dividend was declared.

The weaker profits came as revenue for the quarter slid 30.8 per cent to S$80 million from S$115.6 million in the year-ago period.

Best World noted that the fall in revenue was mainly due to lower contributions from its franchise segment. It said this was due to “the overlap of festive season with the relaxation of Covid-19 restrictions, resulting in increased travel compared to Q1 2022”.

“Additionally, there has been a decline in consumer sentiment due to recent macroeconomic challenges. The strong performance in China for Q4 2022 also contributed to the slower revenue growth in Q1 2023,” Best World added.

It noted that management has observed more “conservative and restrained consumer spending habits”, as the global economy faces headwinds from factors such as higher interest rates, inflation and the war in Ukraine.

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Best World said: “Barring any unforeseen circumstances, management maintains a cautious outlook for the next 12 months in light of the strong headwinds looming ahead.”

As at Mar 31, net asset value for the group rose to S$1.1571 per share, up from S$1.1148 per share three months earlier.

Best World shares fell 2.5 per cent on Tuesday to close at S$1.93, before the earnings announcement.