Amway to roll out plans for long-term business growth
KUALA LUMPUR: Amway (Malaysia) Holdings Bhd is cautiously optimistic over delivering revenue growth in 2021 with plans to roll out several initiatives to support direct sellers and long-term business growth.
These include the launch of the Amway Privileged Customers programme and new sales incentives to direct sellers, new product launches and promotions and 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 FY20 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 Q4, Amways recorded a net profit of RM4.27mil compared to net profit of RM11.44mil in the previous corresponding quarter.
Revenue in the quarter increased to RM316.08mil versus RM253mil in the comparative quarter.
The board of directors declared an interim dividend of five sen per share and a special dividend of 7.5 sen per share, bringing full-year payout to 27.5 sen per share.