Amway 2Q net profit soars 91% y-o-y; declares five sen dividend

KUALA LUMPUR (Aug 24): Amway (Malaysia) Holdings Bhd’s net profit for the second quarter ended June 30, 2022 (2QFY22) jumped nearly 91% year-on-year (y-o-y) to RM14.98 million, from RM7.86 million a year ago, boosted by a price hike and normalisation of Amway Business Owners’ (ABO) sales incentives.

Its revenue for the quarter was flat at RM354.62 million, from RM355.91 million a year ago. Earnings per share ballooned to 9.11 sen in 2QFY22, from RM4.78 sen a year ago, the group's Bursa Malaysia filing on Wednesday (Aug 24) showed.

The board has declared a second single-tier interim dividend of five sen per share, with an ex-date of Sept 9, to be paid on Sept 23. This will bring the total year-to-date dividend payout to 10 sen per share.

Compared with its preceding quarter ended March 31 (1QFY22), Amway’s net profit, however, shrank by 25.7% from RM20.17 million on lower sales. Revenue declined by 9.36% from RM391.23 million. The group said the lower sales arose from pre-price increase buy-up in the preceding quarter.

For the cumulative six months ended June 30 (6MFY22), its net profit grew 25.7% y-o-y to RM35.15 million from RM27.97 million. Its cumulative revenue expanded 5.11% to RM745.85 million from RM709.57 million.

It said the better profitability for 6MFY22 was mainly driven by sales growth, price increase and normalisation of ABO sales incentives.

Moving forward, the group is optimistic of delivering a moderate topline sales growth for the full year of 2022.

It also anticipates marginal improvement in profitability through several strategies, including the normalisation of the sales incentive plan.

However, it warned that inflationary risk and weaker ringgit will exert pressure on the group’s operating margin.

Amway shares fell three sen to close at RM5 on Wednesday, giving it a market capitalisation of RM822 million.