Thursday 28 Mar 2024
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KUALA LUMPUR (May 17): Amway (Malaysia) Holdings Bhd saw its net profit for the first quarter ended March 31, 2016 (1QFY16) halve to RM18.05 million or 10.98 sen a share from RM36.84 million or 22.41 sen a share a year ago.

In a filing to Bursa Malaysia today, the direct selling company attributed the drop in profit to lower sales and higher import costs as a result of the weaker ringgit, as well as higher sales incentive provisions and operating expenses.

The group declared a dividend of 5 sen per share, to be paid on June 15. The ex-date for the dividend is June 1.

Revenue for 1QFY16 came in 5% lower at RM305.94 million as compared to RM321.99 million in 1QFY15, due mainly to a strong buy up in 1QFY15 ahead of the implementation of goods and services tax on April 1, 2015.

Amway Malaysia managing director Paul Yee said the group will continue to invest in sales and marketing programmes, Amway Business Owner experience-related infrastructure, as well as Amway Malaysia's 40th anniversary events and activities to sustain the momentum.

"These investments, together with the weaker ringgit and a higher transfer price, are expected to have an adverse impact on our operating margin for 2016," he said in a separate statement today.

At 5pm today, Amway shares closed 15 sen or 1.6% lower at RM9.20, for a market capitalisation of RM1.54 billion.

 

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