1h2010 results briefing - listed companybestworld.listedcompany.com/misc/hy2010_results... ·...
TRANSCRIPT
13 August 2010
1H2010 Results Briefing
DisclaimerDisclaimerDisclaimerDisclaimer
The presentation is prepared by Best World International Limited (the “Company”)and is solely for the purpose of corporate communication and general referenceonly. The presentation is not intended as an offer to sell, or to solicit an offer to buyor to form any basis of investment decision for any class of securities of theCompany in any jurisdiction. All such information should not be used or relied onwithout professional advice. The presentation is a brief summary in nature and donot purport to be a complete description of the Company, its business, its currentnot purport to be a complete description of the Company, its business, its currentor historical operating results or its future business prospects.
This presentation is provided without any warranty or representation of any kind,either expressed or implied. The Company specifically disclaims all responsibilitiesin respect of any use or reliance of any information, whether financial or otherwise,contained in this presentation.
Presentation OutlinePresentation OutlinePresentation OutlinePresentation Outline
� Financial HighlightsFinancial HighlightsFinancial HighlightsFinancial Highlights
� Operational ReviewOperational ReviewOperational ReviewOperational Review
� Outlook: Strategies & PlansOutlook: Strategies & PlansOutlook: Strategies & PlansOutlook: Strategies & Plans
Financial Highlights
Income Statement HighlightsIncome Statement HighlightsIncome Statement HighlightsIncome Statement Highlights
(S$’000)(S$’000)(S$’000)(S$’000) 2Q102Q102Q102Q10 2Q092Q092Q092Q09Chg Chg Chg Chg (%)(%)(%)(%)
1H101H101H101H10 1H091H091H091H09Chg Chg Chg Chg (%)(%)(%)(%)
Revenue 9,874 20,755 (52.4) 21,400 39,731 (46.1)
Gross Profit 7,580 15,344 (50.6) 16,660 29,709 (43.9)
Gross Profit Margin 76.8% 73.9% 3.9 77.9% 74.8% 4.1Gross Profit Margin 76.8% 73.9% 3.9 77.9% 74.8% 4.1
Net Profit (Loss) to Equity Holders
(673) 3,237 N.M. 267 5,240 (94.9)
Net Profit (Loss) Margin
(6.8%) 15.6% N.M. 1.2% 13.2% (90.9)
Earnings (Loss) Per Share
(0.33 cents)
1.57 cents
N.M.0.13
cents2.54 cents
(94.9)
Revenue Breakdown Revenue Breakdown Revenue Breakdown Revenue Breakdown ---- GeographicalGeographicalGeographicalGeographical
FY2008FY2009$’000 % Change
32%25%
2Q102Q102Q102Q10
15%
16%
23%
2Q092Q092Q092Q09
15%11%
17%
Singapore Malaysia Indonesia
Thailand Others
16%
39%
7%
Singapore Malaysia Indonesia
Thailand Others
Cash Flow Statement HighlightsCash Flow Statement HighlightsCash Flow Statement HighlightsCash Flow Statement Highlights
(S$’000)(S$’000)(S$’000)(S$’000) 2Q102Q102Q102Q10 2Q092Q092Q092Q09ChgChgChgChg(%)(%)(%)(%)
1H101H101H101H10 1H091H091H091H09ChgChgChgChg(%)(%)(%)(%)
Net Cash Flows from (Used in) Operating Activities
(2,099) (934) 124.7 1,620 2,774 (41.6)
Net Cash Flows from Investing Activities
973 6,565 (85.2) 859 6,444 (86.7)
Net Cash Flows Used in Financing Activities
(2,317) (2,066) 12.1 (2,442) (2,195) 11.3
Cash and CashEquivalents in Consolidated CashflowStatement
34,357 35,874 (4.2) 34,357 35,874 (4.2)
Key Financial RatiosKey Financial RatiosKey Financial RatiosKey Financial Ratios
EfficiencyEfficiencyEfficiencyEfficiency 30 Jun 201030 Jun 201030 Jun 201030 Jun 2010 31 Dec 200931 Dec 200931 Dec 200931 Dec 2009
Receivable days 26 33
Inventory days 256 130
Payable days 24 13
Cash conversion cycle 258 150
Liquidity / SolvencyLiquidity / SolvencyLiquidity / SolvencyLiquidity / Solvency 30 Jun 201030 Jun 201030 Jun 201030 Jun 2010 31 Dec 200931 Dec 200931 Dec 200931 Dec 2009
Current ratio (x) 7.7 5.1
Quick ratio (x) 6.6 4.5
Net debt to equity ratio (x) Net cash Net cash
Operational Review
Singapore and Malaysia MarketsSingapore and Malaysia MarketsSingapore and Malaysia MarketsSingapore and Malaysia Markets
� Singapore replaced Indonesia as the Group’s largest revenue contributor q-o-q & h-o-h, growing 2.4% q-o-q
� Increase in sales due to 20th anniversary marketing campaign
� Malaysia’s revenue fell both q-o-q & h-o-h due to fierce � Malaysia’s revenue fell both q-o-q & h-o-h due to fierce competition & price wars from companies offering similar products at lower prices
� Compared to 1Q2010, Malaysia’s revenue grew by 19.6% in 2Q2010 signaling slow signs of recovery
Indonesia MarketIndonesia MarketIndonesia MarketIndonesia Market
� Revenue from Indonesia dipped 87.2% to $1.0 million as compared to the exceptionally strong sales of $8.1 million in 2Q2009
� The Group continues to work with and lobby relevant authorities to iron out cosmetic and import regulatory issues for its skincare productsproducts
� Progress made: obtained product licenses for 2 key skincare products which was launched in June 2010
� Will embark on aggressive promotional campaign after Ramadan is over to re-engage the market
Thailand MarketThailand MarketThailand MarketThailand Market
� Thailand’s revenue grew 16.5% q-o-q and 65.3% h-o-h
� Growth momentum continues, although disrupted by political unrest in beginning 2Q2010
� Marketing activities in Bangkok suspended in consideration of staff � Marketing activities in Bangkok suspended in consideration of staff and distributors’ safety; to resume efforts in FY2010
� Revenue for 1H2010 grew 65.3% to $4.5 million from $2.7 million vis-à-vis 1H2009
Others MarketsOthers MarketsOthers MarketsOthers Markets
� Declined 25.7% h-o-h mainly due to Vietnam and China’s lower revenue contribution
� As announced in 3Q2009, revenue generated from China has been assigned to a third party agent resulting in the decline of revenue consolidated due to a different pricing mechanismconsolidated due to a different pricing mechanism
� Positive growth from Hong Kong and Myanmar h-o-h
Regional & Lifestyle CentresRegional & Lifestyle CentresRegional & Lifestyle CentresRegional & Lifestyle Centres
Growing MembershipGrowing MembershipGrowing MembershipGrowing Membership
Outlook: Strategies & Plans
New ProductsNew ProductsNew ProductsNew Products
Outlook Outlook Outlook Outlook
� Continue improving the business through:
� Increasing brand awareness
� Consolidating existing markets and growth momentum
� Increasing membership base
� Opening of 4 Regional Centres in Ho Chi Minh, Qingdao, Seoul, and Manila in 2H2010
� Continuous People Development training for staff and distributors� Continuous People Development training for staff and distributors
� To focus and invest on product and brand differentiation
Q&A
Thank You!