Amway year-end sales drop 8 percent
Amway has released its year-end sales for 2014.
Ada-based Amway reported sales of $10.8 billion, which is an 8-percent dip from 2013.
Amway said the decline in sales was due to lower revenues in China and fluctuation in foreign currency exchange rates.
Amway’s sales were largely concentrated in the product categories of nutrition, beauty, durables and home care.
Nutrition products continued to lead the way for Amway, accounting for 43 percent of direct selling revenue. Beauty products contributed 25 percent, followed by durable products at 19 percent and home care products at 8 percent. Other offerings accounted for 5 percent.
New product launches such as Truvivity by Nutrilite supplements and the Artistry Hydra-V collection had a "notable impact."
The top 10 markets for Amway in 2014 were China, South Korea, Japan, the U.S., Thailand, Russia, Taiwan, India, Malaysia and Ukraine.
Some of the company’s most mature markets, including South Korea and Taiwan, experienced notable growth in 2014.
Markets such as Brazil, Mexico, Argentina, Costa Rica, Guatemala, Chile, Panama, Italy and Spain saw double-digit percentage growth in local currency sales.
Markets influenced by political unrest and economic slowdowns — Russia, Thailand and Ukraine — “showed resilience and produced solid results.”
Amway said it has built a strong customer base globally. Its products can be found in 71 million households across 10 of its top markets and those households are not part of the Amway sales force.
“Sales in 2014 reflect the significant efforts of Amway business owners and employees who continue to do well around the world, despite challenging operating environments found in several nations that are major markets for Amway,” said Steve Van Andel, chairman, Amway.
Amway President Doug Devos predicted a good year ahead.
“We are optimistic and feel we are well positioned for growth,” he said.
He noted several reasons for his optimism, including plans to open five new manufacturing facilities, several new Amway Experience Centers to support its Amway business owners, or ABOs, and improve virtual experiences online.
“Additionally, attitudes toward and interest in entrepreneurship remains at all-time highs,” DeVos said.
Van Andel added that Amway continues to see "great strength globally as select markets hit record sales numbers and others show resilience that point to strong results in 2015."
Despite the decline, Amway said it continues to exhibit strong long-term growth.
Amway has grown by 68 percent in the last decade and achieved sales growth in 13 of the last 15 years.
In China, results have been strong as well — with growth rates over the past five and 10 years of 27 percent and 45 percent.