PETALING JAYA: Health and wellness products retailer Beshom Holdings Bhd
is expected to face a challenging year ahead, underscored by inflationary pressures and softer consumer sentiment.
According to TA Research, elevated inflation and sluggish consumer demand are likely to keep consumption of non-essential goods subdued, weighing on distributor productivity and transaction values.
In the fourth quarter (4Q26) of financial year 2026 (FY26), the company’s core profits declined by 7.6% year-on-year (y-o-y) to RM2mil, while revenue eased 1.6% y-o-y to RM35.4mil.
The weaker performance was mainly attributable to softer sales in the multi-level marketing division due to weaker member productivity, and higher provisions for slow-moving inventories, coupled with increased operating costs in the wholesale division.
TA Research said the 4Q26 results came in within expectations.
For FY26, its core earnings stood at RM7.8mil, which accounted for 99% and 98% of the brokerage’s and consensus full-year earnings forecasts, respectively.
The group declared a final dividend of 1.5 sen per share, bringing its FY26 dividend to 2.5 sen per share (FY25: four sen a share).
“Following the incorporation of the FY26 results, we have revised our FY27 and FY28 core earnings estimates downwards by 4.3%,” the research house said in a report.
The brokerage added that the FY27 outlook for both the company’s MLM and retail divisions is expected to remain challenging, due to a declining distributor base amid intensifying industry competition and softer consumer spending, which may result in lower transaction values per customer.
To mitigate these headwinds, TA Research said the group plans to roll out more targeted marketing initiatives and incentive strategies aimed at improving member productivity and increasing customer spending.
Separately, Beshom’s wholesale division, which is the group’s key earnings contributor, is expected to remain resilient in FY27, supported by a more favourable sales mix and continued cost optimisation initiatives.
Following its earnings revision, TA Research maintained its “sell” recommendation on the stock with a revised target price of RM0.56 (previously RM0.58), based on 15 times calendar year 2027 earnings per share.
Beshom closed unchanged at 54.5 sen yesterday.
The coming year will be pivotal for Beshom as the company navigates a softer consumer landscape and a shrinking distributor base.
While the wholesale division offers some resilience, the broader earnings outlook remains constrained by inflationary pressures and weak discretionary spending, reinforcing TA Research’s cautious stance following its latest downgrade.
