Amway warns of continued profit pressure amid tough business environment

KUALA LUMPUR: Amway (M) Bhd expects the prevailing challenging business environment to continue weighing on its revenue and profitability.
'Amid a challenging economic landscape in 2025, brought about by uncertainties in the global trade and tariff policies, weaker consumer demand and rising product costs driven by inflationary pressures, the group remains guided by our commitment to delivering shareholders' value and our reputation as a trusted provider of health and wellbeing products,' Amway said in a filing with Bursa Malaysia.
It added that it would continue focusing on delivering holistic gut health solutions while adapting its business model to evolving consumer needs.
'In support of its long-term strategy, the group will continue to make targeted and prudent investments in several areas, including ABO-centric programmes, innovative product launches, health-centric communities, and essential infrastructure and technology upgrades,' it said.
In the first quarter ended March 31, Amway's net profit tumbled 60% to RM13.2mil, down from RM32.7mil in the same quarter last year.
The lower profit was due to higher product costs arising from the increase in purchase price and lower sales volume.
Revenue for the quarter fell to RM294.3mil against RM322mil previously mainly due to lower demand towards health & wellness products and home appliances.
Its earnings per share slid to 8.04 sen from 19.92 sen a year prior.
Amway has announced a first single-tier interim dividend of 5.0 sen per share. The payment will be made on June 20.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Star

3 hours ago

• The Star

Local institutions maintain buying momentum for fifth week with RM510.6mil inflows

KUALA LUMPUR: Local institutions continued their buying streak for the fifth consecutive week, with net inflows amounting to RM510.6 million compared with RM620.6 million in the previous week, said MIDF Amanah Investment Bank Bhd. However, local retailers snapped their two-week outflow streak, recording a net inflow of RM54.7 million, according to MIDF's Fund Flow Report for the week ended June 20, 2025. Similarly, foreign investors extended their net selling streak on Bursa Malaysia for a fifth consecutive week, with net outflows totaling RM565.2 million, slightly higher than the previous week's outflow of RM444.4 million. "The foreign investors were net sellers on every trading day, with outflows ranging from -RM52.5 million to -RM202.2 million. The largest outflow was recorded on Friday, followed by Monday with -RM130.3 million," said the investment bank. The three sectors which recorded the highest net foreign inflows were transportation and logistics (RM95.8 million), real estate investment trusts (RM38.4 million), and construction (RM28.9 million). Meanwhile, the sectors with the highest net foreign outflows were financial services (RM387.4 million), healthcare (RM110.0 million), and industrial products and services (RM52.9 million). In Asia, foreign investors reversed their net buying position last week, recording an outflow of -US$618.6 million, except for South Korea and India which registered net foreign inflows. The investment bank noted that the average daily trading volume saw a broad-based decline last week, except for foreign investors. "Local institutions and local retailers saw a decline of -13.3 per cent and -10.9 per cent, respectively, while foreign investors saw a surge of +24.0 per cent," it added. - Bernama

New Straits Times

3 hours ago

• New Straits Times

MARKET PULSE AM JUNE 23, 2025 [WATCH]

KUALA LUMPUR: News on the latest moves on the stock and crypto markets. Bursa Malaysia opened lower this morning as investors turned cautious amid rising geopolitical tensions in the Middle East. The US joining the war against Iran over the weekend, despite Trump's earlier two-week claim, has added a fresh layer of uncertainty to the markets. With volatility likely to rise, the FBM KLCI is expected to stay within the 1,480 to 1,500 range today. In the crypto market, Bitcoin dipped to RM431,676. Ethereum declined to RM9,575, while Solana fell to RM566.

Focus Malaysia

4 hours ago

• Focus Malaysia

Foreign funds exit from Bursa, regional markets escalates amid Middle East conflict

FOREIGN investors extended their selling streak on Bursa Malaysia to a fifth week by posting a net outflow of -RM565.2 mil for the June 16-20 trading period which was slightly higher than the previous week's net outflow of -RM444.4 mil. They were net sellers on every trading session with outflows ranging from -RM52.5 mil to -M202.2 mil, according to MIDF Research. 'The largest outflow was recorded on Friday (June 20), followed by Monday with -RM130.3 mil,' observed the research house in its weekly fund flow report. The three sectors that recorded the highest net foreign inflows were transportation & logistics (RM95.8 mil), REITs (RM38.4 mil) and Construction (RM28.9 mil). On the other hand, the top three sectors with the highest net foreign outflows were financial services (-RM387.4 mil), healthcare (-RM110.0 mil) and industrial products & services (-RM52.9 mil). On the contrary, local institutions extended their buying spree to a fifth week with net purchases of RM510.6 mil. Likewise, local retailers also returned to buying mode last week with a net inflow of RM54.7 mil to snap their two-week outflow streak. The average daily trading volume (ADTV) saw a broad-based decline last week with the exception of foreign investors. Local institutions and local retailers saw a decline of -13.3% and -10.9% respectively while foreign investors saw a surge of +24.0%. In comparison with another four Southeast Asian markets tracked by MIDF Research, all recorded outflows with the largest emanating from Thailand at -US$298.3 mil to end its single-week of net buying streak. Indonesia came in second with a net outflow of -US$275.4 mil after a brief week of inflow while the Philippines posted a net outflow of -US$61.8 mil to extend its foreign selling streak to two weeks. Vietnam posted the smallest outflow among the regional markets at -US$7.3 mil to end a one-week inflow streak. The top three stocks with the highest net money inflow from foreign investors last week were Westports Holdings Bhd (RM86.5 mil, Tenaga Nasional Bhd (RM74.0 mil) and Eco-Shop Marketing Bhd (RM42.5 mil), – June 23, 2025