BEST World International : CGN -1.23% posted a 1.5 per cent drop in net profit to S$21.7 million for its third quarter ended September, from S$22.1 million in the previous corresponding period.

 

A marginal increase in revenue was offset by higher cost of sales and weaker contributions from the skincare and wellness retailer&rsquo s franchise business in China, it said on Monday (Nov 13).

 

Earnings per share stood at S$0.05, unchanged from the same period last year. 

 

Revenue in Q3 rose 4.2 per cent to S$104.5 million, largely from Best World&rsquo s direct selling segment but was offset by poorer performance in the China market due to ongoing macroeconomic challenges.

 

Cost of sales increased 31.8 per cent to S$21.9 million in Q3 due to higher packaging charges and overheads linked to the group&rsquo s Tuas manufacturing facility.

 

Distribution costs for the quarter held steady at S$36.7 million as a result of the slight increase in revenue when compared to the same period last year.

 

Interest income for the quarter more than doubled to S$3.2 million from S$1.4 million due to higher interest derived from the group&rsquo s cash placed in structured and fixed deposits with banks. 

 

Looking ahead, Best World said its management maintains a cautious outlook for the next 12 months due to high interest rates, inflation and the economic performance of China which present strong headwinds for the group. 

 

&ldquo Management is of the opinion that the remaining months of 2023 will be challenging due to the Israel-Hamas conflict, which could threaten not only consumer confidence in the markets we operate in but potentially increase costs.&rdquo

 

No dividend was declared for the period.