Amway 3Q net profit climbs 136% on price increases, declares five sen dividend

KUALA LUMPUR (Nov 16): Amway (Malaysia) Holdings Bhd’s net profit for the third quarter ended Sept 30, 2022 (3QFY22) jumped 135.6% to RM18.75 million from RM7.96 million in the same period last year, underpinned by price increases and the normalisation of Amway Business Owners (ABO) sales incentives as sales growth returned to moderation.

Quarterly revenue, however, dipped 3.16% to RM371.79 million from RM383.93 million previously.

Earnings per share shot up to 11.41 sen from 4.84 sen previously.

The multi-level marketing company declared a third interim dividend of five sen per share, payable on Dec 16.

For the first nine months period (9MFY22), Amway’s net profit expanded 50.03% to RM53.9 million from RM35.93 million, as cumulative revenue grew 2.21% to RM1.12 billion from RM1.09 billion, driven by the successful launch of Amway Privileged Customer, the expansion of Core Plus discretionary ABO incentive programmes, as well as the solid fundamentals established in 2021.

“[However,] the ongoing global supply chain disruption and rising inflation, coupled with geopolitical crises, will continue to put pressure on global economic growth.

“[As such,] despite these economic headwinds, the group is cautiously optimistic to deliver a marginal top line sales growth for the full year of 2022,” it said.

Looking ahead, Amway continues to strategically and prudently invest in specific areas to achieve long-term business growth, such as ABO-centric programmes, new product launches and promotions, as well as ongoing upgrades to the digital platform and related delivery infrastructure.

For the full year, the group anticipates moderate improvement in profitability through normalisation of the sales incentive plan and several other strategies, including price adjustments.

Amway’s share price closed unchanged at RM4.83 on Wednesday (Nov 16), bringing it a market capitalisation of RM794 million.