Consumer caution to weigh on Beshom’s earnings 

PETALING JAYA: Herbal medicines and healthcare products company Beshom Holdings Bhd may face near-term earnings headwinds as the government’s fuel subsidy rationalisation and the expanded sales and service tax (SST) take effect in the second half of the year.

The policy changes may weigh on consumer sentiment, analysts said.

In recently released results for its financial year ended April 30 (FY25), Beshom said its core earnings of RM9.8mil declined 14.7% year-on-year despite a 2.6% increase in revenue to RM155.1mil.

TA Research said the results came in within expectations, accounting for 100% of its projections and consensus forecasts.

The earnings decline was due to weaker performances across both the company’s wholesale and retail divisions, which partially offset the improved results from the multi-level marketing (MLM) division.

There was also a higher effective tax rate of 30.9% in FY25, compared with 24.2% in the previous year.

Despite weaker earnings in FY25, the group declared a final dividend of 1.5 sen per share for the quarter under review, bringing its year-to-date dividends to three sen a share.

Revenue for the group’s wholesale division increased slightly in FY25, supported by stronger sales from one of its new ranges of wellness products. The MLM division also saw a small increase in revenue following stronger sales of fashion and beauty products.

However, the retail division underperformed because of reduced sales of higher-margin products, coupled with higher operating and marketing expenses.

Going forward in the absence of major festive periods, TA Research anticipates headwinds to persist in the first half of FY26.

“Nonetheless, we forecast a stronger performance in FY26’s second half, supported by festive-driven demand.

The research house maintained a “hold” rating on the stock and kept its target price unchanged at 64 sen based on 12 times FY26’s earnings per share.