AMWAY (MALAYSIA) HOLDINGS BERHAD
FY2023 ANALYST BRIEFING
29 February 2024
FINANCIAL
PERFORMANCE
Ng Ai Lee, Chief Financial Officer
Our Performance
Sales Revenue | Profit Before Tax | Net Profit |
RM 1,408.3million | RM 152.6million | RM 115.9 million |
Sales Revenue | 1,400 |
1,600 | |
7.0% vs PY | 1,200 |
1,000 | |
800 | |
600 | |
FY2023 RM1,408.3 million | FY2022 RM 1,514.8 million | 400 |
200 |
-
Sales decline due to:
- On the back of exceptional growth in year 2020 & 2021 and a marginal growth in FY2022;
- Weaker demand for health & wellness products & home appliances.
- Surge in inflationary pressure dampening consumer sentiment and spending ability; and
- Consumer priorities shifting away from pandemic-specific health concerns.
Sales (RM' Million)
1,4861,515
1,408
+29%
1,153
966 | +19% |
+2% | |||||||
-7% | |||||||
2019 | 2020 | 2021 | 2022 | 2023 | |||
Sales | Growth Rate | ||||||
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Profit Before Tax (RM'mil)
10.80%
6.80%
152.6
103.1
FY2022 | FY2023 |
Profit Margin (PBT/Sales) |
Profit Before Tax (PBT)
The significantincrease in PBT (48.0%) is mainly attributableto:
- Lower ABO incentives payout in tandem with lower sales; and
- Price increase.
48.0% vs PY
+4.0% profitability
FY2023RM152.6 million | FY2022 RM103.1 million
70
60
50
40
sen
30
20
10
0
Dividend
107%
60.0
81% 84%
38.0
40
24.018
4
202020
FY2021 | FY2022 | FY2023 | ||
Interim Dividend | Special Dividend | Payout Ratio |
Dividend Payout
Dividendpolicy:
Dividend payout ratio of no less than 80% of current year's net earnings
Dividendpayout 2023:
- Totaldividend : 60.0sen (2022:38.0 sen)
- Dividend payout: RM98.6mil (2022: RM62.5mil)
BUSINESS
HIGHLIGHTS
Last Year…
Post | Ongoing | Inflation, FX |
Pandemic | Conflict | Impact, Petrol |
Impact to Direct Selling Industry?
In Globe
SALES VS PRIOR YEAR
Amway | (1.4%) |
Peer Set Mean | (9.3%) |
Herbalife | (3.4%) | ||||||
NuSkin* | (14.0%) | ||||||
D I R E C T | Natura* | 2.0% | |||||
S E L L I N G | Medifast | (25.9%) | |||||
P E E R S E T | |||||||
Oriflame | (9.0%) | ||||||
USANA | (5.2%) | ||||||
Q2 2023 (YTD) | 2022 | ||||||
2023 Constant Dollar
In Malaysia
-10% to -60% Decline
Projected for some Malaysian
Direct Selling Companies
*Includes non-direct selling businesses
Amway Malaysia's Growth Journey: After Exponential Growth
+29% | +2% | Decline | |||
7% | |||||
Unit: M RM | +19% | 1,485 | 1,515 | ||
1,408 | |||||
1,154 | |||||
966 | |||||
FY19 | FY20 | FY21 | FY22 | FY23 |
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Disclaimer
Amway (M) Holdings Bhd published this content on 29 February 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 04:14:07 UTC.