Wednesday, August 10, 2011

Amway 2Q net profit dips 12.2% to RM18.99m

KUALA LUMPUR: Amway (Malaysia) Holdings Bhd net profit for the second quarter ended June 30, 2011 dipped 12.2% to RM18.99 million from RM21.64 million a year earlier due mainly to higher advertising and promotional expenses coupled with higher operating cost arising from investment in consumer access driven strategies.

The company said on Wednesday, Aug 10 that its revenue for the quarter edged up to RM169.16 million from RM168.32 million in 2010.

Amway declared a second interim single tier dividend of 9 sen net per share for the financial year ending Dec 31, 2011.

For the six months ended June 30, Amway's net profit rose to RM39.28 million from RM38.49 million in 2010, on the back of revenue RM341.92 million.

Commenting on its prospects, Amway said the economic environment remains challenging.

'Based on the marketing and sales programs the group has put in place to support distributors to grow their business, the group is cautiously optimistic of achieving growth in sales revenue in the current financial year.

'The board of directors is of the opinion that this internal target is achievable based on current market conditions and currently available information,' it said.

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