Amway (Malaysia) Holdings Bhd’s net profit for the second quarter ended June 30, 2016 fell 39.6% to RM6.18 million from RM10.23 million a year ago due to higher import costs from the weaker ringgit and higher product prices, and increase in sales incentive provisions.
Group revenue was 43.0% higher at RM268.87 million in Q2 compared to RM187.99 million in the same period in 2015 as sales exhaled following a strong buy-up in Q1’15 ahead of the implementation of the Goods and Services Tax (GST) on April 1 2015.
Sales for the quarter under review were driven by strong Amway Business Owner (ABO) momentum and higher ABO qualifiers in response to the company’s 40th anniversary sales and marketing programmes, activities and promotions.
For the half year, its net profit fell 48.5% to RM24.23 million from RM47.07