Hai-O posts 83% higher net profit

PETALING JAYA: Hai-O Enterprise Bhd registered 83% growth in net profit to RM17.87mil for the first quarter ended July 31, 2017 compared to the previous corresponding quarter.

This was on the back of 58.32% higher revenue mainly attributed by the group’s multi-level marketing (MLM) and retail divisions.

In a Bursa Malaysia filing yesterday, Hai-O said it has taken several measures to mitigate the risks of a challenging business operating environment due to weak consumer sentiment and rising cost of living.

“The MLM division, which has recently launched one of its fashion ranges of products, will continue to collaborate with a well known local designer to roll out more fashion wear and related products.

“In conjunction with the MLM division’s celebration of its 25th anniversary, the division will carry out grand sales promotions to attract more buying activities and participants.

“These ongoing activities will help keep the sales momentum going,” it said.

In order to mitigate the effect of weak domestic demand from cautious spending, Hai-O’s retail and wholesale divisions will continue to carry out extensive advertising and promotions and source for more quality products with affordable prices for its consumers, particularly targeting the younger group of consumers.

Hai-O will continue to enhance its marketing digital platform for all its operating segments to achieve cost efficiency and to reach out to a wider group of consumers.