MAINBOARD-LISTED Best World International reported on Tuesday (May 9) a 25.7 per cent decline in net profit on the back of lower revenue.

 

Net profit for the three months ended Mar 31, 2023 fell to S$20.5 million from S$27.6 million in the year-ago period. On a per-share basis, earnings fell to S$0.0471 from S$0.0521 in Q1 FY22. No dividend was declared.

 

The weaker profits came as revenue for the quarter slid 30.8 per cent to S$80 million from S$115.6 million in the year-ago period.

 

Best World noted that the fall in revenue was mainly due to lower contributions from its franchise segment. It said this was due to &ldquo the overlap of festive season with the relaxation of Covid-19 restrictions, resulting in increased travel compared to Q1 2022&rdquo .

 

&ldquo Additionally, there has been a decline in consumer sentiment due to recent macroeconomic challenges. The strong performance in China for Q4 2022 also contributed to the slower revenue growth in Q1 2023,&rdquo Best World added.

 

It noted that management has observed more &ldquo conservative and restrained consumer spending habits&rdquo , as the global economy faces headwinds from factors such as higher interest rates, inflation and the war in Ukraine.

 

Best World said: &ldquo Barring any unforeseen circumstances, management maintains a cautious outlook for the next 12 months in light of the strong headwinds looming ahead.&rdquo

 

As at Mar 31, net asset value for the group rose to S$1.1571 per share, up from S$1.1148 per share three months earlier.