Petaling Jaya, May 18 – Bursa Malaysia Main Market-listed Amway (Malaysia) Holdings Berhad reported a revenue of RM237.2 million for the first quarter of its 2017 financial year which ended 31 March 2017, 22.5% lower from the corresponding period in FY2016.
“The year on year difference was attributed to the strong sales for the same period in FY2016 that was the result of scheduled price increases, as well as the 40th anniversary programs”, said Managing Director of AMWAY Malaysia, Martin Liou.
Meanwhile, profit before tax for the period under review was RM13.3 million compared to RM24.9 million in the corresponding period in FY2016 due to the impact of lower sales, lower consumer sentiment and higher import costs from the weaker ringgit.
Liou added, “Whilst the impact of forex and decreased revenue continue to put pressure on our margins, we have taken measures to rationalize our expenses and prudently manage our operating costs”.
The Board expects the remaining year to be extremely challenging after two consecutive years of strong revenue growth due to the softer economic landscape arising from declining consumer spending and low consumer confidence, as well as the volatile impacts of the Ringgit.
Despite the challenges that the Group may face in 2017, AMWAY Malaysia declared a first single tier interim dividend of 5.0 sen net per share.
“We remain committed to our investment in various sales and marketing initiatives, and ABO experience related infrastructure as ABOs and future entrepreneurs are the core of how we grow the business” said Executive Director, Mike Duong.
As part of the support for ABOs during the quarter, AMWAY Malaysia released two ARTISTRY™ products: EXACT FIT™ Cushion Foundation and IDEAL RADIANCE™, New & Advanced Collection.
In addition, AMWAY Malaysia released several new digital enhancements such as: eAmagram (an interactive monthly digital magazine to ABOs), eNewsgram (bi-weekly newsletter to ABO leaders), and WeChat (social media account to share latest information) to modernise the way our ABOs conduct and grow their business.