Amway upgrades outlets

PETALING JAYA: Amway (M) Holdings Bhd is allocating RM5mil as capital expenditure for the next three years to upgrade and convert its remaining regional distribution centres (RDCs) into Amway shops.

“Currently, we have 16 shops and nine RDCs in the country. Our plan is to convert the remaining RDCs into shops by 2013.

“This would be one of our thrust moving forward, as the shop strategy had been very successful since it was started in 2008,” said executive director Paul Yee after the company AGM.

He said Amway aimed to convert three of the RDCs this year and expected the conversion to cost an average of RM500,000 for each warehouses.

This year, the company plans to introduce 10 more products for its beauty, wellness and homecare

It will invest RM5mil to convert remaining distribution centres into shops

range. “We will focus on our wellness and beauty business which forms more than 50% of our revenue.

“We will still focus on our core competency of direct selling and we continue to see constant flow of young talent joining us,” he said, adding that Amway had about 232,000 distributors now.

Yee said about 55% of people who joined Amway last year were below age 35 and this showed a continuity in the company’s business.

The company also announced yesterday a higher net profit of RM21.59mil for its first quarter ended March 31 compared with RM20.2mil in the previous corresponding quarter. Revenue rose to RM179.2mil from RM172.7mil.

For the financial year ended Dec 31, 2011, Amway achieved net profit of RM89.9mil on revenue of RM735.8mil.

The company has cash amounting to RM123.2mil and has no plans to utilise the fund yet.

“Nevertheless, from now onwards, we would adopt a new dividend payout ratio that would return at least 80% of our net profit to shareholders on a quarterly basis,” he said.