KUALA LUMPUR (Nov 20): Amway (Malaysia) Holdings Bhd (KL:AMWAY) is anticipating a decrease in its full-year revenue for 2024, as its third quarter net profit dropped 28.8% year-on-year due to lower sales volume and higher product costs.

The group said it had continued to record lower sales in the first nine months of this year after sales declined in 2023 on weakened consumer demand and inflationary pressures. 

"The group is closely monitoring these economic challenges while shifting its focus from traditional physical health to a more comprehensive “Health and Wellbeing” approach, to offer holistic solutions for various consumer needs. Given the continued headwinds, the group anticipates a decrease in revenue for the full year," it said.

The group's net profit for the third quarter ended Sept 30, 2024 (3QFY2024) dropped to RM32.9 million, from RM46.2 million in 3QFY2023, while revenue fell 10.1% to RM299.84 million from RM333.5 million amid softer consumer demand for health and wellness products and home appliances.

It declared a third interim dividend of five sen per share, to be paid on Dec 18, bringing its year-to-date payout to 15 sen, compared to the previous year.

For the first nine months of FY2024, Amway’s net profit rose 8% to RM90.2 million from RM83.5 million, as the group benefitted from price increases implemented in the previous year and lower incentives provided to its agents amid reduced sales. But revenue fell 12.5% to RM918.3 million from RM1.05 billion, mainly because the previous year's sales were boosted by pre-price increase buy-up.

Amway's shares closed four sen or 0.58% higher at RM6.90 on Wednesday, valuing the group at RM1.13 billion. The stock is up 90 sen or 15% year to date.