BURSA Malaysia Main Market-listed Amway (Malaysia) Holdings Berhad (“AMWAY Malaysia”) today reported the third quarter of the financial year 2017 (3QFY17) which ended on 30 September, 2017 with the Group revenue of RM243.65 million, representing a 6.9% downward movement in comparison to the corresponding quarter in 2016 recorded at RM261.69 million.

The Group’s profit before tax for the three months ended 30 September 2017 was recorded at RM19.44 million, decreased by 17.7% as compared to the same period last year with RM23.61 million. The decrease is due to lower sales and higher import costs, primarily attributed to the weaker Ringgit and partially offset by lower provision for AMWAY Business Owner (ABO) sales incentives, in line with lower sales.

Comparison with cumulative period up to 3QFY17

For the nine months ended 30 September, 2017, the Group revenue was RM732.86 million, a 12.4% lower than the same period last year with revenue of RM836.50 million. The Group’s profit before tax for the nine months ended 30 September 2017 also saw a decline, recorded at RM52.67 million with a decrease of 9.8% from RM58.42 million reported in the same period last year.

“The general decline in the Group’s revenue for the first nine months was due to strong buy up in 2016 ahead of the price increases effective February and April 2016. The sales in 2016 was also driven by positive momentum among ABOs and higher qualifiers in response to the 40th anniversary sales and marketing programmes,” said Mike Duong, Executive Director, AMWAY Malaysia.

Comparison with 2QFY17

In comparison to the 2QFY17, the Group’s revenue saw a minor decline of 3.3% to RM243.65 million from RM252.06 million due to positive response towards sales and marketing programmes in the preceding quarter. Profit before tax of RM19.44 million decreased by 2.4% compared to the preceding quarter’s RM19.92 million. This was mainly due to lower sales and higher operating expenses in the period under review, partially offset by lower provision for ABO sales incentives.

Prospects for the financial year ending 31 December 2017

“For the remaining period, we expect slight improvement in our performance compared to the prior nine months, in line with the positive ABO momentum following the start of a new ABO performance year. Nevertheless, foreign exchange impact continues to exert pressure on our margins,” Mike added.

Managing Director of AMWAY Malaysia, Mr Martin Liou affirmed, “We will continue to proactively focus on strategies to effectively manage operating costs to offset pressure on profitability and implement various sales and marketing initiatives, as well as ABO experience-related infrastructure to support the ABOs’ businesses.”

AMWAY Malaysia declared a third interim single-tier dividend of 5.0 sen net per share.


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