Amway to roll out plans for long-term growth

KUALA LUMPUR: Amway (M) Holdings Bhd is cautiously optimistic in delivering revenue growth in 2021, with plans to roll out several initiatives to support direct sellers and long-term business expansion.

These include the launch of the Amway Privileged Customers programme and new sales incentives to direct sellers, new product launches and promotions, as well as investments in a digital platform and other infrastructure enhancements.

“Although prudent management of other expenses will help to mitigate the impact of these programmes and investments, these initiatives are expected to exert pressure on the group’s operating margins,” it said in a filing with Bursa Malaysia.

The group posted a 19.4% jump in revenue to Rm1.15bil in financial year 2020 as compared to Rm966.33mil in the previous financial year although profitability was eroded due to initiatives to support direct sellers and long-term investments in digital infrastructure.

Net profit for the year was down to Rm46.9mil versus Rm51.16mil in 2019.

In the fourth quarter, Amway recorded a net profit of Rm4.27mil compared with a net profit of Rm11.44mil in the previous corresponding quarter.

Revenue in the quarter increased to Rm316.08mil versus Rm253mil in the comparative quarter.