Best World International has recorded an 83.8% increase in its 1HFY2021 ended June earnings to $77.3 million from $42.0 million in 1HFY2020.
The growth in earnings came on the back of a 30.7% increase in revenue to $278.4 million from $213.0 million a year ago, as the group saw higher contribution across all its geographical markets, as well as its two main revenue segments - direct selling and franchise.
With cost of sales remaining at $58.6 million from the previous year, gross profit for 1HFY2021 came in at $219.8 million, 42.3% higher than $$154.5 million in the previous year.
As at end June, cash and cash equivalents stood at $387.7 million.
Similar to the same period a year ago, no dividend have been declared by the board for the current period as the board has opted to conserve cash amid uncertain business climates. In 1HFY2019, the group declared an interim dividend of 1.2 cents per share.
In its results release, the group notes that all its markets have yet to show signs to returning to normalcy from the Covid-19 pandemic despite the vaccination rollouts, on the contrary, markets that were seemingly well controlled previously are also affected by the pandemic in the previous quarter.
The lockdowns, lifestyle restrictions, travel bans and such, in relation to these secondary infections have and will continue to negatively impact consumer sentiments. On top of this, orders from the group's contract manufacturers and vendors have also delayed, in some cases, indefinitely due to factory closure as a result of lockdowns. All these present strong headwinds to the group’s plan to maintain business growth in the next reporting period and beyond. As a result, barring any unforeseen circumstances, management maintains a very cautious outlook in terms of its performance moving forward.
Shares in Best World have been suspended from trading since May 2019 due to numerous accounting issues. The stock last traded at $1.36.
Photo: Best World
