SINGAPORE – Best World International posted a net profit of $ 29.9 million in the third quarter, up 145.3 percent from the same period a year earlier, driven by new revenues from the franchise business in China.
Revenues in the three months ended September 30 rose 96.8 percent to $ 92.1 million, mainly due to the full start of the franchise business in China since July, which also raised profit margins. Franchise income reached $ 60.5 million, or 65.7 percent of third-quarter revenue.
World Best has announced a special 1.2 cent dividend per share "given the achievement of a new milestone" in China's operations. The closing date of the book is December 4. No dividends were announced in the same period last year.
Earnings per share were 5.44 cents, up 146.2 percent from 2.21 cents in the third quarter of last year.
The value of net assets per share was 27.94 cents on September 30, up from 23.54 cents on December 31 last year.
The group said that China would be a key growth driver for the next 12 months, in which the line of skin care "DR's Secret" had met strong demand. At the end of September, Best World had 28 franchises throughout China with operations covering 10 provinces and one municipality, including Zhejiang, Sichuan, Guangdong, Henan, Heilongjiang and Chongqing.
Best World said in its results on Thursday: "Together with contributions from group operations in Taiwan, Indonesia, Hong Kong and Singapore, except for unexpected circumstances, management is optimistic that this group will be able to record basic revenue growth for 2018, although has recorded lower earnings and profits during the transition phase in the first half of this year. "
The group said it has "actively explored M & A (mergers and acquisitions) and company development opportunities", so higher professional costs and other related costs are expected in the second half of 2018 compared to the first.
World Best Shares rose three cents, or 1.63 percent, to close at $ 1.87 on Thursday before the results were released after the close of trading.