Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on May 17, 2018

KUALA LUMPUR: Amway (Malaysia) Holdings Bhd registered a lower net profit of RM7.98 million or 4.85 sen a share for the first quarter ended March 31, 2018 (1QFY18) on the back of softer sales and higher import costs owing to a weaker ringgit. Its profit was 15.63% lower than in the same period last year of RM9.45 million or 5.75 sen a share.

Amway’s 1QFY18 revenue fell 0.77% to RM235.32 million, from RM237.15 million in 1QFY17. The group has declared a first single-tier interim dividend of five sen for FY18, payable on June 13.

Going forward, Amway said the board anticipates an improved economic landscape for the remaining FY18 due to the strengthening of the ringgit, stabilising oil prices and higher gross domestic product growth forecast. “However, it remains unclear as to how quickly this will translate into the strengthening of consumer confidence and purchasing power which may continue to remain under pressure,” Amway said in a filing with Bursa Malaysia yesterday.

Notwithstanding these uncertainties, the board expects the group’s sales for the remaining year to stabilise in contrast to 2017.

Moreover, it said the group will continue to proactively focus on strategies to manage operating costs and implement various sales and marketing initiatives, as well as its Amway Business Owner (ABO) experience-related infrastructure to support ABOs.

 

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