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These 3 Companies Recently Announced Improvements In Their Financial Performance

We’re in the earnings season right now.

My colleagues have been busy reading and summarising the latest financial performances of many Singapore companies for readers of the Motley Fool Singapore.

As some of you may be aware, 2016 has so far been a challenging year for Singapore in terms of its economic growth. Many industries – such as oil and gas, construction, shipping, and banking – have shown signs of weakness.

But, not every company in our local stock market has had a tough time. There are some that have managed to report growth in their latest results. Let’s take a look at a few of such companies.

1. Genting Singapore PLC (SGX: G13) released its 2016 third-quarter earnings last Thursday. Many of you reading this are likely to be familiar with the company’s current main operating asset, Resorts World Sentosa. The integrated resort houses one of Singapore’s two casinos and has a slew of hotels and other attractions such as the Universal Studios Singapore theme park.

During the reporting quarter, Genting Singapore reported a decline in revenue of 9% year-on-year. Despite the lower revenue, both profit attributable to owners and earnings per share surged by 187%.

Moreover, the company’s cash and cash equivalents had increased from S$4.57 billion a year ago to S$4.78 billion whilst its total debt had declined from S$1.63 billion to S$1.16 billion.

2. Best World International Limited (SGX: 5ER) reported its fiscal third-quarter earnings last Friday evening. The company is a direct-selling company that deals with a wide range of healthcare products. The firm has operations in 12 markets that are mainly in Asia.

Best World had achieved remarkable growth in its top- and bottom-line during the quarter. To the point, its revenue surged 99.1% year-on-year to S$52.2 million, underpinned by strong growth from its key markets (Taiwan, China and Indonesia). Consequently, profit attributable to shareholders jumped 123.8% to S$8.93 million.

The membership base of Best World (a key figure for a direct-selling company) also saw a steady sequential increase of 2% to 429,489.

But, the company’s balance sheet had weakened compared to a year ago (cash and equivalents had fallen from S$41.4 million to S$38.1 million and total debt had climbed from S$1.5 million to S$8 million) and it failed to generate free cash flow during the quarter.

3. Venture Corporation Ltd (SGX: V03) is another company that reported its third-quarter earnings results last Friday.

The company is an electronic services manufacturer and it has expertise in a wide range of businesses such as printing & imaging, networking & communications, retail store solutions & industrial, computer peripherals & data storage, and more.

In the reporting quarter, Venture Corporation registered a minor increase in revenue, but a strong increase in profit. The company also reported positive free cash flow and has a balance sheet with minimal debt.

In terms of the numbers, Venture Corporation’s third-quarter revenue was up 1.8% to S$705.7 million, resulting in a 16.9% increase in net profit to $47.4 million. Consequently, the company’s earnings per share climbed 15.6% to 17.0 cents.

Moving to Venture Corporation’s balance sheet, it currently has $427.6 million in cash and equivalents and around $90.62 million in borrowings. The company generated S$46.5 million in free cash flow for the quarter, although that is down from the S$60.0 million seen a year ago.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.