SINGAPORE (Feb 22): Best World International reported a trebling of 4Q earnings to $12.3 million from a year ago on the back of a 51% rise in sales to $61.8 million.
This also resulted in a more than trebling of earnings to a record of $34.6 million for FY16 ended Dec from $10.1 million a year ago.
Best World, which specialises in the distribution of skincare and wellness products to its direct-selling members, registered the strong performance as the group continues to gain momentum and extend its reach into its key markets of Taiwan and China.
In FY16, revenue doubled to $200.8 million on the back of continual growth from its key markets of Taiwan and China during the year.
Revenue from Taiwan also more than doubled to $123 million in FY16 lifted by higher sales driven by increased consumption from existing active members and the reinvigoration of low consumption members.
Revenue from China, the group’s fastest growing market, surged 192.7% to $57.9 million in FY16 resulting from higher export orders from the group’s China agent.
Overall, the group’s core business of direct selling grew 76.7% to $142.3 million from a year ago as the result of robust growth from its key market of Taiwan and higher revenue contributions from Hong Kong.
Export revenue increased 272.7% from $14.4 million to $53.8 million, underpinned by higher demand for the group’s DR’s Secret skincare range.
Manufacturing/Wholesale revenue declined 30.3% to $4.7 million, due to a delay in product registration earlier this year which resulted in the postponement of a product launch.
Best World’s board is recommending a final one-tier tax-exempt dividend of 3.0 cents per share. Including the interim one-tier tax-exempt dividend of 2.0 cents per share, total dividend payout ratio for FY16 represents 36.6% of the group’s net profit.
In addition, the board is also proposing a share split of every one existing share held by shareholders into two shares.
“The proposed share split will further increase the market liquidity of the group’s shares, broaden its shareholder base and provide greater affordability and accessibility for investors who wish to participate in the equity of the company,” says Best World.
Shares of Best World closed 2 cents higher at $1.93.
