Beshom Holdings Berhad: Navigating a Challenging Landscape with Resilient Revenue and Strategic Adjustments
Ever wondered how your favourite Malaysian companies are navigating the current economic climate? Today, we’re diving deep into the latest fourth-quarter financial report for Beshom Holdings Berhad, a familiar name in the Malaysian market, for the financial year ended 30 April 2025.
The report paints a picture of a company that, while showing resilience in revenue growth, is grappling with the pressures of rising costs and a dynamic market. Despite a slight dip in overall profit after tax for the full year, Beshom Holdings Berhad has proposed a final and special dividend, which is certainly a positive signal to shareholders. Let’s unpack the numbers and understand what’s truly driving their performance.
Core Data Highlights: A Closer Look at the Numbers
Beshom Holdings Berhad’s latest report provides crucial insights into its operational and financial health. Here’s a breakdown of the key figures, comparing the current period with the corresponding periods last year.
Quarterly Performance (4th Quarter Ended 30 April 2025 vs. 30 April 2024)
For the fourth quarter, Beshom Holdings Berhad demonstrated a stable top-line performance with revenue holding steady, while gross profit and operating profit saw healthy increases. However, higher tax expenses impacted the net profit.
Current Quarter (30/04/2025)
Revenue: RM 35,955k
Gross Profit: RM 17,545k
Operating Profit: RM 3,535k
Profit Before Tax: RM 3,513k
Profit After Tax: RM 2,334k
Earnings Per Share: 0.77 sen
Previous Corresponding Quarter (30/04/2024)
Revenue: RM 35,902k
Gross Profit: RM 16,220k
Operating Profit: RM 3,345k
Profit Before Tax: RM 3,405k
Profit After Tax: RM 3,074k
Earnings Per Share: 1.03 sen
Revenue saw a marginal increase of 0.1%. Gross Profit rose by 8.2%, and Operating Profit by 5.7%. Despite these positive movements, Profit Before Tax increased by a modest 3.2%. The most significant change was a 24.1% decrease in Profit After Tax and a 25.1% decrease in Earnings Per Share, primarily due to a substantial increase in tax expenses for the quarter.
Full Year Performance (Financial Year Ended 30 April 2025 vs. 30 April 2024)
For the full financial year, Beshom Holdings Berhad achieved revenue growth, but overall profitability saw a decline due to various factors including higher costs and increased tax expenses.
Current Year To Date (30/04/2025)
Revenue: RM 155,128k
Gross Profit: RM 62,858k
Operating Profit: RM 12,634k
Profit Before Tax: RM 12,555k
Profit After Tax: RM 8,678k
Earnings Per Share: 2.96 sen
Previous Corresponding Period (30/04/2024)
Revenue: RM 151,132k
Gross Profit: RM 63,000k
Operating Profit: RM 14,176k
Profit Before Tax: RM 14,483k
Profit After Tax: RM 10,979k
Earnings Per Share: 3.63 sen
Revenue increased by 2.6% year-on-year. However, Gross Profit saw a marginal decrease of 0.2%, attributed mainly to higher import costs and a shift in sales mix. This, coupled with higher operating expenses, led to a 10.9% decrease in Operating Profit and a 13.3% decline in Profit Before Tax. Ultimately, Profit After Tax fell by 20.9%, and Earnings Per Share by 18.5% for the full financial year.
Segmental Performance: Who’s Driving the Bus?
Beshom Holdings Berhad operates across several key segments, each contributing differently to the overall performance:
- Multi-Level Marketing (MLM) Division: This division saw its revenue increase marginally by 2.9% to RM 53.9 million for the full year. Despite sales being offset by lower performance in other product lines, aggressive marketing campaigns for Fashion & Beauty products helped maintain growth. Crucially, the MLM division’s pre-tax profit significantly increased to RM 4.5 million from RM 1.6 million in the preceding year, largely due to enhanced inventory management and resource optimisation.
- Wholesale Division: Revenue for the Wholesale division grew by 1.9% to RM 59.4 million, driven by new wellness products. However, this growth was dampened by lower sales of traditional items like Chinese medicated tonic and vintage tea. Pre-tax profit for the division declined by approximately 48.0% to RM 4.4 million, primarily due to compressed gross margins from higher import costs and an unfavourable sales mix, alongside increased marketing expenses.
- Retail Division: The Retail division’s revenue saw a modest increase of 2.5% to RM 35.7 million. However, it recorded a loss of RM 0.4 million for the year. This was a result of decreased sales in high-margin products, coupled with rising operating, advertising, and marketing costs. Consumer caution in spending on discretionary goods like high-value health supplements, influenced by inflationary pressures and global economic uncertainties, continued to pose challenges.
- Other Division: Primarily driven by rental income from investment properties, manufacturing of health supplements, and credit & leasing, this segment maintained its pre-tax profit at approximately RM 4.1 million. Higher rental income helped offset increased operating costs in other segments.
Financial Health: Balance Sheet and Cash Flow
Beshom Holdings Berhad’s financial position remains robust, though there are movements to note:
- Total Assets: Increased to RM 358.0 million as at 30 April 2025, up from RM 349.7 million last year. This growth was largely due to a new investment of RM 15.0 million in unquoted shares.
- Total Liabilities: Rose by RM 9.0 million to RM 36.7 million (from RM 27.7 million), primarily due to an increase in trade and other payables and borrowings.
- Net Assets Per Share: Maintained at RM 1.03, indicating stability in shareholder equity despite the changes.
- Cash Flow from Operations: The Group generated RM 14.66 million from operating activities for the full year, a decrease from RM 18.78 million in the previous year.
- Investing Activities: Net cash used in investing activities amounted to RM 11.0 million, mainly for the acquisition of unquoted investments and the purchase of property, plant, and equipment.
- Financing Activities: Net cash used in financing activities was RM 6.11 million, with significant outflows for dividend payments (RM 9.0 million) and lease liabilities (RM 1.5 million), partially offset by net drawdown of term loans and bill payables.
- Cash and Cash Equivalents: Overall, the Group’s cash and cash equivalents decreased by RM 2.5 million, ending the financial year at RM 31.5 million.
Risk and Prospect Analysis: Charting the Path Ahead
Beshom Holdings Berhad acknowledges the challenging economic environment and tariff uncertainties. The upcoming expansion of the Sales and Service Tax (SST) in Malaysia is also expected to impact business and consumer sentiment, adding to cost pressures. Global trade policy uncertainties and ongoing geopolitical conflicts further contribute to a complex operating landscape.
However, the company remains cautiously optimistic, noting that the Malaysian economy continues to be anchored by resilient consumer spending and investment growth. To mitigate risks and seize opportunities, Beshom Holdings Berhad is implementing several strategic measures:
- Operational Efficiency and Cost Discipline: The Group is placing greater emphasis on enhancing efficiency across its operations and maintaining strict cost controls.
- Sales Incentive Schemes: Reviewing and optimising sales incentive schemes for personnel and outlet supervisors within the Wholesale and Retail divisions to boost performance.
- Product Development and Marketing: All divisions are committed to expanding their product portfolios with new developments and enhancing marketing strategies to ensure business sustainability.
Summary and Outlook
Beshom Holdings Berhad’s latest financial report reflects a mixed performance: while revenue growth remains resilient, particularly in its MLM division, overall profitability has been impacted by rising import costs, changes in sales mix, and higher tax expenses. The Wholesale and Retail divisions face headwinds from consumer caution and increased operating costs, necessitating strategic adjustments.
The company’s balance sheet remains solid, with a stable net asset per share, but cash flow management is crucial given significant investments and dividend payments. Looking ahead, Beshom Holdings Berhad is focused on internal efficiencies, cost control, and strategic market engagement through new products and revamped incentives.
Key risk points that could influence future performance include:
- The impact of the expanded Sales and Service Tax (SST) on consumer spending and business costs.
- Continued volatility in import costs and their effect on gross profit margins.
- The competitive landscape and consumer cautiousness, particularly in the high-value health supplements market.
- Uncertainties in global trade policy and geopolitical conflicts that could affect supply chains and market sentiment.
The Board of Directors maintains a cautiously optimistic outlook, believing that their proactive measures and strategic focus will enable the Group to navigate the challenges and sustain its performance in the coming financial year.
Final Thoughts and Your Perspective
Beshom Holdings Berhad is clearly navigating a complex and challenging economic landscape. Their focus on operational efficiency, cost discipline, and strategic product development appears to be the right approach. The proposed dividend also signals their commitment to shareholder returns amidst these adjustments.
What are your thoughts on Beshom Holdings Berhad’s strategy to navigate these challenges? Do you believe their focus on cost discipline and new product development will be enough to drive significant profit growth in the coming years? Share your views in the comment section below!
