KUALA LUMPUR (Nov 18): Amway (Malaysia) Holdings Bhd's (Amway Malaysia) net profit jumped 47.11% to RM15.61 million in the third quarter ended Sept 30, 2020 (3QFY20) from RM10.61 million a year ago, on higher sales due to increased demand for immunity boosting supplements and home appliances amid Covid-19, as well as favourable response towards marketing promotions and various initiatives to support Amway business owners.

In its exchange filing today, Amway Malaysia also attributed the stronger profit recorded to lower selling and administrative expenses of RM27.88 million compared with RM33.38 million.

Earnings per share rose to 9.5 sen in 3QFY20, from 6.46 sen a year ago.

Revenue for the quarter increased by 36.96% to RM321.95 million, from RM235.07 million last year.

Amway Malaysia also declared a third interim dividend of five sen per share — as it did last year — for the financial year ending Dec 31, 2020 (FY20), payable on Dec 18, bringing total dividends for FY20 to 15 sen per share.

For the first nine months ended Sept 30, 2020 (9MFY20), cumulative net profit rose 7.32% to RM42.63 million, compared with RM39.72 million a year ago, while revenue grew 17.39% to RM837.4 million, from RM713.33 million.

Amidst the Covid-19 health crisis, the group said it has delivered a strong year-to-date (YTD) growth performance contributed by an increased demand for health supplements, cleansers, air treatment, and similar products.

While the ongoing Enhanced or Conditional Movement Control Order in certain states and districts may impact Amway Malaysia's physical stores and channel operations, given the overall positive outcome during 9MFY20, the group is optimistic about delivering a strong revenue growth for the full year.

However, the group foresees that the Covid-19 support measures, investment in infrastructure for social commerce experiences and digital initiatives as well as the economic impact of Covid-19 will exert pressure on its operating margins.

"Nevertheless, the group anticipates that the impact on operating margins will be partially mitigated with improved revenue performance together with the one-time gain in the disposal of the group's properties," it added.

Amway Malaysia's share price inched up 0.39% or two sen to close at RM5.12 with about 21,400 shares traded, giving it a market capitalisation of RM841.66 million.

YTD, the counter has fallen 10% from RM5.70 on Jan 2 this year.