BEST Posts Narrowed Losses, Lowers Full-year Outlook
The stock in Best Inc. (NYSE: BEST) closed up 1 cent on Wednesday, at $5.58 per American depositary share, after the company announced its third quarter financials.
The Hangzhou-based logistics company said in a statement today that its revenue in the three months through September was $1.2 billion, up 22% year-over-year. Net loss narrowed to $900,000, down 87% from the same period a year ago, according to the report.
Best attributed the growth in the quarter to its express service revenue, which reached $727.8 million, up 19% year-over-year.
"Despite challenging market conditions, e-commerce grew at a healthy pace which contributed to accelerating demand for BEST's supply chain solutions and logistics services," Johnny Chou, the chairman and chief executive officer of Best, said in a statement today.
He added, "BEST Express and Freight continued to gain market share and lower costs, while Supply Chain Management and Store+ optimized their operations and improved profitability."
In October, Best expanded its express parcel delivery services to Vietnam. The move marked its 19th venture overseas, according to the report.
In addition, Best announced a share repurchase program today, which allows the company to purchase up to $100 million of its ADSs during the next 18 months.
"This share repurchase program demonstrates our confidence in BEST's long-term business prospect and ability to deliver sustainable growth and solid operating fundamentals. As our supply chain and logistics businesses continue to benefit from an economic transformation toward digital commerce, we believe our integrated business model and robust technology will enable us to capture market opportunities and create value for our shareholders in the future," Chou said in a separate statement.
Best also announced the appointment of its new chief financial officer, Gloria Fan. Jenny Pan, who has served as Best's CFO in the interim since June, will continue her senior finance management role, the company said.
Going forward, Best said it expects to generate revenue in the range of between 34.9 billion yuan and 35.1 billion yuan in the full fiscal year. Best said its revenue guidance was adjusted due to its lower average selling price per parcel for express and lower revenue growth for its store.
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