We just reached the end of the latest earnings season. Given many companies reported their results in the past few weeks, I thought it may be useful to summarise the results of some of these companies in three different buckets – positive, negative, mixed. This will give readers a quick overview of the performances of these companies.
With that, I will focus on two of those companies that delivered growth in their latest results.
Wilmar International Limited (SGX: F34) is the first company that has reported stronger performance recently. As a quick introduction, Wilmar is an agricultural company that operates through four main segments: Tropical Oil, Oilseeds and Grains, Sugar, and Others.
For the quarter ended 30 September 2018, Wilmar reported that revenue increased by 4.3% to US$11.6 billion. Net profit grew by 10.7% to US$407.4 million. This was driven by stronger performance in the Tropical Oil, and Oilseeds and Grains segments, and higher contribution from associates and joint ventures. Year to date, the group generated US$1.65 billion in net cash flow from operating activities, resulting in free cash flow of US$773.4 million.
Best World International Limited (SGX: 5ER) is another company that announced positive results recently. As a quick background, Best World is a direct-selling company that deals with a wide range of healthcare products.
For the quarter ended 30 September 2018, Best World reported that revenue improved 96.8% year-on-year to S$92.1 million. This was due to the commencement of the Franchise segment in China, as well as stronger sales performance in Taiwan. Similarly, net profit attributable to owner jumped by 145.3% year-on-year to S$29.9 million, mainly driven by higher sales revenue.
Executive director and chief operating officer of Best World, Huang Ban Chin, commented the following in the company’s earnings update:
“3Q2018 herald a new milestone for the Group’s China operations as we register the first full quarter of revenue contribution from our Franchise segment. Moving forward, we expect the China market to be the Group’s key engine for growth. We intend to capitalise on our momentum and we will work hard to further improve market awareness of our brand offerings and stimulate more demand for our products.”
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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.