Best World net profit more than doubles to S$37.9m

BEST World on Monday posted a net profit of S$37.9 million for the first quarter ended March 31, nearly three times its S$13.3 million net profit in the year before.

Revenue rose 72.3 per cent to S$128.5 million, which the skincare products company attributed to an increase in revenue from both the group's direct selling and franchise segments.

China accounted for slightly more than half the group's revenue. Sales from the market jumped 87.1 per cent to S$74.2 million. Best World said the easing of inter-province travel restrictions and the rollout of Covid-19 vaccines in China have all positively impacted its franchisees.

Overall, the rate of increase for distribution costs in tandem with revenue increase was lower in Q1 FY21 than in the year before, due to accounting adjustments.

Earnings per share stood at 6.97 Singapore cents, higher than 2.44 cents the year before. No dividends were declared.

Best World said most of the markets it operates in are still under the looming threat of virus variants and a second wave of infections. As a result, its management will still be predominantly relying on online marketing programmes and will maintain a cautious outlook for the next 12 months.

Trading in Best World shares has been suspended since May 2019.