Latest news with #RM13.2mil
The Star
6 days ago
- Business
- The Star
Soft demand continues to affect Amway's sales
PETALING JAYA: Amway (M) Holdings Bhd could continue to face the effects of softening consumer demand for its products in the near term, analysts say. TA Research noted that demand for non-essential goods appears to be weakening, while continued upward pressure on product costs is likely to persist for the direct-selling company. Additionally, the research house highlighted that Amway's outlook for this year remains challenging, weighed down by global economic uncertainty. CIMB Research also expects continued softness in Amway's top line in the near term, as consumers prioritise essential spending. 'While the challenging demand environment may weigh on revenue growth, we anticipate Amway to exercise prudent cost management and optimisation strategies to help mitigate margin pressures and support profitability in the near term,' the research house said. Amway recently reported a weaker-than-expected first-quarter core net profit of RM13.2mil, marking a 58.9% year-on-year (y-o-y) decline. This also represents the ninth consecutive quarter of y-o-y revenue decline.
The Star
21-05-2025
- Business
- The Star
Amway warns of continued profit pressure amid tough business environment
KUALA LUMPUR: Amway (M) Bhd expects the prevailing challenging business environment to continue weighing on its revenue and profitability. 'Amid a challenging economic landscape in 2025, brought about by uncertainties in the global trade and tariff policies, weaker consumer demand and rising product costs driven by inflationary pressures, the group remains guided by our commitment to delivering shareholders' value and our reputation as a trusted provider of health and wellbeing products,' Amway said in a filing with Bursa Malaysia. It added that it would continue focusing on delivering holistic gut health solutions while adapting its business model to evolving consumer needs. 'In support of its long-term strategy, the group will continue to make targeted and prudent investments in several areas, including ABO-centric programmes, innovative product launches, health-centric communities, and essential infrastructure and technology upgrades,' it said. In the first quarter ended March 31, Amway's net profit tumbled 60% to RM13.2mil, down from RM32.7mil in the same quarter last year. The lower profit was due to higher product costs arising from the increase in purchase price and lower sales volume. Revenue for the quarter fell to RM294.3mil against RM322mil previously mainly due to lower demand towards health & wellness products and home appliances. Its earnings per share slid to 8.04 sen from 19.92 sen a year prior. Amway has announced a first single-tier interim dividend of 5.0 sen per share. The payment will be made on June 20.
