- change ups
$134M Year For Amway Malaysia
ADA — Higher costs and tax charges are blamed for the 3 percent drop in net profit at Alticor’s direct-selling subsidiary Amway (Malaysia) Holdings Bhd’s.
Net profit for the full year ending Aug. 31 was RM51.9 million (Malaysian ringgit), which compared to roughly $13.8 million, with RM53.6 million, or roughly $14.2 million, recorded in the same period a year ago.
Revenue was up 11.1 percent to RM507 million, or approximately $134 million.
“This is due mainly to an increase in distributors’ productivity, which in turn was attributable to various sales and marketing initiatives undertaken by the group,” Amway said in a statement.
The company expects a tougher business environment in 2006, as well.
“With the anticipated slowdown of the country’s economic growth and the weak consumer sentiment in the wake of the recent surge in fuel prices, Amway is expected to face a more challenging market environment in the new financial period,” the statement said.
Amway hopes that an upcoming anniversary program could help mitigate any adverse market conditions.
Amway declared a RM0.075, or 2 cents, per share dividend in the fourth-quarter period, which brings the total dividend payout for 2005 to RM0.5, or 12 cents, per share.
In a separate statement, Amway said it will change its financial year end from Aug. 31 to Dec. 31 to match the reporting schedule of its holding company, Alticor Global Holdings Inc.