Amway saw its group revenue for the quarter ended 30 September 2022 coming in lower than the same period last year by 3.2% on the back of a difficult comparison coming from overwhelming demand towards Atmosphere Mini which was newly launched in July 2021. Q3 revenue for 2022 was RM371 million versus RM383.9 million in 2022.
The Group’s profit before tax for the quarter rose by RM13.9 million compared to the same period last year benefiting from price increase and normalisation of ABO sales incentives when the sales growth returned to moderation during the current period. Group revenue for the nine months ended 30 September 2022 was higher than the same period last year by 2.2% mainly driven by strong demand towards health and wellness as well as personal care products.
For the nine months, the Group recorded revenue of RM1.117 billion against RM1.093 billion in 2021, PBT was up 48.4% compared to the same period last year mainly driven by sales growth, price increase, and normalisation of ABO sales incentives the group said.
Group revenue for the current quarter was 4.8% higher than the preceding quarter mainly driven by the new launch of health bundles riding on the new Double X supplements. The Group’s profit before tax for the current quarter ended 30 September 2022 increased by 22.3% compared to the preceding quarter mainly attributed to higher sales and true-up of sales incentive.
Commenting on the prospects, the group said it had delivered revenue growth in the first nine months of 2022 based on the successful launch of Amway Privileged Customer, the expansion of Core Plus discretionary ABO incentive programmes, as well as the solid fundamentals established in 2021. The ongoing global supply chain disruption and rising inflation coupled with geopolitical crises will continue to put pressure on global economic growth. Despite these economic headwinds, the Group is cautiously optimistic to deliver a marginal topline sales growth for the full year of 2022.
For the full year, the Group anticipates moderate improvement in profitability through normalisation of the sales incentive plan and several other strategies, including price adjustments
