Revenue for 4QFY2023 decreased 4.6% y-o-y to $201.3 million. This was primarily due to its franchise segment in China, which experienced a weak consumer sentiment and ongoing macroeconomic challenges.
Gross profit for the quarter declined by 3.9% y-o-y to $158 million, while gross profit margin stood at 78.9%.
For the full year, earnings declined by 11.7% to $120.4 million.
Revenue for FY2023 declined 7.7% y-o-y to $514.5 million.
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Gross profit was down 8.5% y-o-y to $405.4 million, while gross profit margin stood at 78.8%.
As at Dec 31, 2023, cash and cash equivalents stood at $574 million. Despite so, the company has not declared a dividend, "in view of the group's short and medium term commitment which include but are not limited to, working capital requirements and corporate actions capital needs, as well as taking into consideration the uncertain business climate."
Moving forward, Best World continues to expect growth headwinds for its China market as uncertainties such as stock market volatility and challenges in the property sector continue to weigh on consumer sentiments and cloud consumers' outlook.
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Economic volatility, supply chain disruptions and changing consumer behaviour are also factors that could impact consumer demand, production and profitability for the group’s direct selling segment. Barring any unforeseen circumstances, Best World maintains a cautious outlook for the next 12 months.
Shares in Best World closed at an unchanged $1.82 on Feb 27.
