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10 Quick Things That Investors Should Know About Best World International Limited’s Latest Results

Best World International Limited (SGX: 5ER) is a direct-selling company that deals with a wide range of healthcare products. The company has three business segments, namely direct sales, export sales and wholesale.

At the end of February, Best World released its fourth-quarter earnings for 2017. Today, we will look at 10 key highlights from its latest report:

1. Sales for the quarter improved 19.8% year-on-year to S$ 74.1 million.

2. Gross profit grew 13.2% year-on-year to S$50.3 million.

3. Net profit jumped by 76.7% year-on-year to S$21.7 million.

4. Earnings per share (EPS) increased by 76.8% year-on-year to 3.96 cents.

5. Gross margin for the fourth quarter of 2017 was 67.9%, down from the 71.5% recorded in the same quarter in 2016. The decline was caused by higher export sales which has lower margins.

6. For the quarter, Best World generated operating cash flow of S$42.3 million, up from S$19.0 million in the same quarter in 2016. The increase in operating cash flow was came from higher profitability, and lower inventories.

7. On 31 December 2017, Best World’s borrowings was S$7.4 million while its cash and bank balances was S$82.2 million, giving it a net debt position of S$74.5 million.

8. Moving to its business segments, the direct selling and manufacturing business segment reported revenue declines of 18.0% and 14.6% respectively compared to the same period last year. On the other end, the export segment saw revenue increase by 144.5% year-on-year to S$35.1 million.

9. In term of geography, China and Taiwan remained as the two biggest revenue contributors to the group, accounting for over 91.2% of sales in its latest quarter.

10. The company also provided the following outlook:

“As management expects growth momentum to continue from the Group’s business in China, barring unforeseen circumstances, management expects improvement in both top and bottom line for FY2018 when compared to FY2017.”

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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.