KUALA LUMPUR (June 23): Amway (Malaysia) Holdings Bhd registered a marginal 4% drop in its net profit to RM10.21 million for the first quarter ended March 31, 2020 (1QFY20), compared with RM10.62 million a year ago, amid lower sales and higher import costs arising from an unfavourable foreign exchange impact.

Quarterly revenue slipped 5% to RM234.64 million from RM247.49 million previously, following shop closures due to the government's imposition of the Movement Control Order (MCO) to curb the spread of Covid-19 outbreak, the direct-selling group's stock exchange today filing showed.

The decline was partially offset by lower operating expenses, it said.

The group declared a first interim dividend of five sen per share for the financial year ending Dec 31, 2020 (FY20), payable on July 24.

Going forward, the group expects sales growth to be flat this year due to the Covid-19 outbreak and consequent MCO, and the limitations on social gatherings and shop operations post MCO, as well as the pandemic's negative impact on consumers' purchasing power.

Nevertheless, the group anticipates that this may be partially offset by increased demand for health supplements, cleansers, air treatment and such similar products.

Amway shares closed four sen or 0.79% lower at RM5.04, after some 6,900 shares were traded. At the current price, it has a market capitalisation of RM828.5 million.

The stock has recovered 12% from its recent low of RM4.5 on March 19. However, the stock is still down 17% compared with RM6.05 a year ago.