The Straits Times / The Business Times News on Best World

Best World interim net gain up 33% on firm demand

Revenues from S'pore, M'sia up 50%; dividend up 20% to 1.2 cents

BEST World International posted a 32.6 per cent year-on-year increase in net profit to $5.8 million for the first half ended June 30, as revenue surged 39.4 per cent to $35.1 million.

Ms Hoan: In the last six months, focus has been on strengthening position within key markets while further penetrating new markets like Taiwan and Hong Kong.

In line with the rise in revenue, gross profit was up by 39.1 per cent to $27.2 million in H1 06. The company attributed its strong performance to robust demand for its products in its key markets of Singapore and Malaysia.

Best World specialises in the development and distribution of quality health and lifestyle products for its regional direct selling members.

The company notched up a 53 per cent year-on-year jump in revenue from Malaysia in H1 06 to $16 million, while revenue from Singapore increased by 50 per cent to $11.6 million.

Singapore, Malaysia and Indonesia contributed 46 per cent, 33 per cent and 18 per cent respectively of Best World's revenue for H1 06.

On the back of its strong results, the board of directors of Best World recommend paying an interim dividend of 1.2 cents for the latest half year, up by 20 per cent from the interim dividend paid a year ago.

Dora Hoan, group chief executive officer, said: 'During the last six months, our focus is on strengthening our position within existing key markets while further penetrating new markets such as Taiwan and Hong Kong.'

The company said barring unforeseen circumstances, it is optimistic about growth prospects.

The company says its expansion into Hong Kong and Taiwan signifies a move out of South-east Asia. It adds: 'With a clear regional expansion strategy, the group aims to expand into China, Brunei, Philippines, South Korea, India and Japan by 2010.' The company expects Taiwan to start contributing to its performance because of its favourable business environment for direct selling.

With positive growth seen for Asian economies, Best World's management believes 'demand for consumer lifestyle products would remain buoyant'. The company says it has a steady pipeline of new products to capitalise on the robust demand.

Best World's earnings per share for the six months was 3.495 cents.