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Best World International Limited’s Latest Earnings: How Did All Its Geographical Markets Do?

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Best World International Limited (SGX: CGN) is a direct-selling company that deals with a wide range of healthcare products. It sells its products to customers and members in 12 markets, and operates in three segments, namely, Direct Selling, Export, and Manufacturing/Wholesale.

In late February, Best World released its 2017 full year earnings update. Given that the company has business interests in many geographical markets, I thought it would be useful for investors to have a look at how each market performed.

Here’s a table showing the revenues from Best World’s various geographies in 2017 and 2016:


Source: Best World 2017 full year earnings announcement

We can see that most of Best World’s geographical markets reported a higher top-line in 2017 compared to 2016. The exceptions were Taiwan and Indonesia.

In Singapore, there was an 8.9% increase in revenue as a result of member-growth from a positive response to marketing campaigns.  Going forward, Best World’s management intends to continue with launching new products and marketing activities to encourage network building.

The biggest jump in revenue in 2017 was seen in China – the country produced revenue growth of over 90%. Management cited an increase in demand for Best World’s products in the country as the key driver of the strong performance. In 2017, Best World’s direct selling license covered only the Hangzhou region; the company expects the coverage to extend to the key cities of at least seven provinces by the end of 2018.

As for Taiwan, revenue declined by 28.5% mainly due to the company’s shift in strategy (to grow sales per member, and to attract new members), stiff market competition, and the prevalence of online discounting.

Last but not least, Hong Kong, Vietnam, Korea and Malaysia reported year-on-year growth in revenues, which were partially offset by declines in Indonesia, the Philippines and Thailand. These countries – except Indonesia – are all grouped into the “Others” category in the table above.

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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.