KUALA LUMPUR (Feb 22): Amway (Malaysia) Holdings Bhd's net profit surged 126.6% to RM11.5 million or seven sen per share in its fourth quarter ended Dec 31, 2016 (4QFY16) from RM5.1 million or 3.09 sen a year ago.

Revenue fell 6.4% to RM251 million in the quarter from RM268.3 million a year ago because of higher sales in the previous year, driven by strong Amway business owners (ABO) momentum and the launch impact of its personalised weight management programme.

Amway, in a filing with Bursa Malaysia today, declared a fourth interim single tier dividend of five sen and a 10 sen special single tier dividend, which will be paid on March 22. The ex-date is March 8 and the entitlement date is March 10.

For the full year (FY16), net profit dropped 14.5% to RM54.6 million or 33.24 sen per share from RM63.9 million or 38.89 sen per share in FY15.

Revenue rose 6.6% to RM1.09 billion compared to RM1.02 billion a year ago mainly due to price increases and stronger buy up ahead of the price increases effective February and April 2016.

"Sales growth was also driven by positive momentum from ABO and higher ABO qualifiers in response to the fortieth anniversary sales and marketing programmes in 2016," it said in a separate statement.

Amway managing director Martin Liou said despite the challenging business environment, 2016 was a commendable year.

"We implemented effective product promotions, new product introductions and we worked closely with our ABO," he said.

Amway executive director Mike Duong said the group will modernise 24 shops in stages over the next few years following the launch of its flagship store Product Pavilion in September last year.

"One of our initiatives in 2017 will be to invest in a mobile-revolution to make it even easier for our ABO to conduct business any time of the day and anywhere, on their personal mobile devices," Duong added.

Moving forward, Amway expects 2017 to be a challenging year with the anticipated softer economic landscape arising from declining consumer spending and low consumer confidence.

"The impact of forex will continue to put pressure on our margin. The group will continue to review its strategies and manage its operational cost effectively," Amway said.

It added that it would continue to support its ABO to grow their business through various sales and marketing initiatives and focus on ABO experience related infrastructure.

The counter closed up 10 sen or 1.31% at RM7.72 for a market capitalisation of RM1.27 billion.