Amway Malaysia’s 3Q net profit halves, pays 10 sen dividend

KUALA LUMPUR Amway (Malaysia) Holdings net profit for the third quarter ended Sept 30, 2015 more than halved to RM11.78 million or 7.17 sen per share from the RM25.02 million or 15.22 sen per share seen in the same quarter last year, largely on higher import costs, higher sales and marketing expenses, and a less favorable sales mix.

The higher import cost was due to the stronger US dollar and higher transfer price, while its higher sales and marketing expense was to support Amway Business Owners (ABOs) to grow their business after the implementation of the goods and services tax (GST), according to its filing with Bursa Malaysia today.

Its revenue, however, strengthened 10.3% to RM241.68 million from RM219.12 million, primarily due to continuous strong momentum coupled with the successful launch of its BodyKey personalised weight management programme.

The weaker earnings notwithstanding, the group declared a third interim single-tier dividend of 10 sen per share in respect of FY15, payable on Dec 15, bringing its year-to-date dividend to 30 sen per share.

For the cumulative nine-month period (9MFY15), its net profit was down 23.2% to RM58.85 million or 35.8 sen per share from RM76.62 million or 30 sen per share in 9MFY14, as a result of the same factors affecting its quarterly profit slide.

Revenue for the period came in 20.1% higher at RM751.65 million from RM625.93 million last cumulative period in FY14, mainly due to a strong buy up in the first quarter, pre-GST.

Looking forward, Amway Malaysia expects the strong revenue trend to continue into the fourth quarter.