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Lower import duties in China help Best World's bottom line in Q3
SKINCARE products firm Best World International on Wednesday posted a 13.7 per cent increase in its third-quarter net profit to S$28.2 million, as revenue for the three months ended Sept 30 rose 14.8 per cent to S$131.3 million.
This was helped to an extent by lower cost of sales, largely due to lower import duties incurred in China from the temporary preferential custom duty rates obtained by the Hunan branch of its China subsidiary; this resulted in a substantially lower custom duty rate for the quarter, it said.
Earnings per share rose to 5.19 Singapore cents for the quarter, compared to 4.56 cents a year ago.
For the nine-month period, net profit rose 13.5 per cent to S$70.3 million; revenue went up 29.5 per cent to S$344.4 million, thanks to growth in both its existing and new markets.
Citing volatility in the Covid-19 situation, however, it flagged caution about the group's performance outlook for the next 12 months.
Factors that could affect its performance include the revocation of the current preferential custom duty rates by the customs authorities. It could also come up against higher professional fees to ensure its operations adhere to all relevant local regulations, in hopes that the trade suspension imposed by the Singapore Exchange would be lifted.
The company could also have to bear higher administrative expenses from an increase in management and staff costs related to the construction of its Tuas manufacturing facilities and the relocation or refurbishment of its regional centres.
Best World on Sunday said it had submitted a proposal to the regulatory arm of the SGX for the resumption in trading of its shares. Trading in its shares has been suspended since May 2019.