Direct-selling company Best World International, which specialises in the distribution of proprietary health and lifestyle products, has reported a net profit of $9.7 million amidst a 24.1% decline in revenue results for the financial period ended 31 December 2009 (FY2009).

Fourth quarter revenue increased 2.3% to $18.7 million in 4Q2009 from $18.3 million in 4Q2008 as a result of strong growth exhibited by Thailand and the other markets the group operates in. Best World International says FY2009 has been a challenging year for the group with sales in Singapore and Malaysia affected by weaker consumer sentiment especially in 1H2009.

And although the company met regulatory and import challenges in Indonesia which resulting in a weak second half for the year, the group managed to obtain registration approval and product licences for more than 10 key products. This led to an 82.9% rise in sales to $2.4 million in 4Q2009 from $1.3 million in 3Q2009.

Revenue contributed by the Malaysian market in FY2009 declined 41.9% to $11.2 million compared to FY2008 as sales performance in 2H2009 improved over 1H2009 due to more effective marketing and promotional campaigns. Sales from 3Q2009 and 4Q2009 are beginning to show signs of recovery to the revenue level of 2008.

Revenue contribution in Singapore decreased 23.7% y-o-y due to a challenging 1H2009. With the bottoming out of the economic downturn, revenue improved 12.3% in 2H2009.

Thailand’s strong growth momentum was a result of the group’s persistence in developing strong direct selling leaders, coupled with aggressive membership campaign and brand building of its skincare and health food products.

Group net profit declined 4.9% to $9.7 million for FY2009 although 4Q2009 saw a 291.8% increase in net profit to $3 million due to a foreign exchange gain of $0.4 million compared to $1.7 million losses in 4Q2008 and lower distribution costs.

With cash reserves of $36.1 million, Best World says it will continue to seek out new markets and business opportunities to diversify the group’s revenue source and to enhance shareholder value.

Best World says its total membership base now stands at 210,630 as at 31 December 2009 representing a broad based growth of 12.8% compared to the corresponding year.