BEST Q2 Revenue Declines 5% Hit By Lower ASP

BEST Inc BEST reported a second-quarter revenue decline of 5% year-over-year to $1.14 billion (RMB7.37 billion), reflecting a decrease in the average selling price in Express and Freight business segments.
The company reported a gross loss of $(22.4) million, with a gross loss margin of (2.0)%.
Adjusted EPS was $(0.17). Net loss was RMB(467.5) million or $(72.4) million, compared to a net profit of RMB42.7 million in the same period of 2020.
Revenue change by segment: Express (-17.1% Y/Y), Freight (+2% Y/Y), Supply Chain Management (-5.9% Y/Y), Global (+63% Y/Y) and Others (+72.5% Y/Y).
SG&A Expenses were RMB458.7 million ($71.0 million) or 6.2% of revenue, compared to RMB403.8 million or 5.2% of revenue last year.
Adjusted EBITDA was negative RMB(253.1) million or $(39.2) million, compared to positive RMB225.0 million a year ago, and the margin was negative (3.4)% versus positive 2.9% in the same quarter of 2020.
BEST used cash in operating activities year-to-date of RMB127.5 million ($19.7 million).
FY21 Outlook: BEST expects revenue of RMB28 billion to RMB32 billion.
Price Action: BEST shares are trading lower by 0.94% at $1.05 during the premarket session on Wednesday.