Amway Q3 net profit falls almost 21%

PETALING JAYA: Amway (Malaysia) Holdings Bhd saw third quarter net profit fall almost 21% on lower sales and higher import costs primarily attributed to the weaker ringgit, which was partially offset by lower provision for sales incentives in line with lower sales.
The direct selling group made a net profit of RM14.95 million for the quarter ended Sept 30, 2017, compared with RM18.92 million for the same quarter in 2016.
The group’s revenue was also almost 7% lower at RM243.65 million, compared with RM261.69 million for the same quarter in 2016.
The group has declared an interim dividend of 5 sen for the quarter, bringing total dividend announced to 15 sen for the nine-month period.
Regarding its performance for the remaining period, the group expects slight improvement compared to the prior nine months, in line with positive Amway Business Owners (ABO) momentum following the start of the new ABO performance year. Nevertheless, foreign exchange impacts continue to exert pressure on the group’s margins.
The group will continue to proactively focus on strategies to (i) effectively manage operating costs to offset pressure on profitability and (ii) implement various sales and marketing initiatives, as well as ABO experience-related infrastructure to support the ABOs’ businesses.
Net profit for the nine month period ended Sept 30, 2017 was 9% lower at RM39.17 million, compared with RM43.15 million for the same period in 2016.
Revenue for the period was 12% lower at RM732.86 million, compared with RM836.50 million.