KUALA LUMPUR (June 25): Hai-O Enterprise Bhd’s fourth quarter net profit fell 36% to RM10.02 million, from RM15.69 million a year earlier, on lower revenue generated from its Multilevel marketing (MLM) and wholesale divisions.
Earnings per share for the quarter ended April 30, 2019 (4QFY19) fell to 3.45 sen, from 5.40 sen previously.
In a Bursa Malaysia filing today, the MLM company said revenue for the quarter fell 37% to RM69.94 million, versus RM110.56 million previously.
The group said lower number of members’ recruitment and renewal, coupled with lower sales registered, had affected the division's financial performance.
Nevertheless, the group announced a final single tier dividend of nine sen per share.
For the full year (FY19), Hai-O said net profit fell 34% to RM47.41 million, from RM72.26 million in the previous financial year.
Full-year revenue fell 29% to RM328.35 million, from RM461.7 million previously.
Moving forward, Hai-O said it will realign its business strategies in the face of a challenging market environment.
It said the MLM division will develop more “small ticket” items with affordable prices to cater for market needs, in view of lower spending power of its members.
To sustain its member base, the division will also realign its marketing strategies by reinforcing the ongoing digitalisation initiatives.
Hai-O’s share price closed down one sen or 0.44% to RM2.24 today, for a market capitalisation of RM650.42 million.