Best World Q2 earnings treble to S$26.8m on revenue surge, higher margins

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Best World Q2 net profit hits S$26.8m on revenue surge, higher margins.

BEST World, whose business dealings are being investigated by the Singapore Exchange , on Tuesday reported second-quarter net profit nearly trebling to S$26.8 million from S$9.1 million a year ago on a surge in revenue and higher gross margins.

According to Best World, 62.8 per cent of its revenue comes from its franchise segment, with another 36.5 per cent coming from its direct-selling model.Its gross profit alone more than trebled to S$76.7 million, reflecting a gross profit margin of 78 per cent.The board has proposed an interim dividend of 1.2 Singapore cents per share, unchanged from the quarter a year earlier.

In its outlook, Best World said that with the ongoing independent review of the group's business in China, a"certain portion" of China management's time has been diverted to deal with the enquiries. China accounted for 61.2 per cent of revenue in the first half of the year.

 

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