KUALA LUMPUR (March 29): HAI-O ENTERPRISE BHD []’s net profit rose 42.8% to RM9.06 million in the third quarter ended Jan 31, 2012 from RM6.34 million a year ago, boosted by its principal subsidiary, the multilevel marketing division.
It said on Thursday its revenue increased 8.9% to RM62.79 million from RM57.62 million. Earnings per share were 4.55 sen compared with 3.18 sen.
Elaborating on the financial performance, Hai-O said despite lower revenue in the wholesale division, higher profit in the current quarter was generated from its higher sales in high margin products.
As for the retail division, there were no significant changes in its revenue and pre-tax profit, as the division has rationalised its unprofitable outlets while it also opened more new outlets to tap into a wider market.
For the nine-month period, its net profit increased 21.6% to RM24.66 million from RM20.28 million in the previous corresponding period. Its revenue rose 2% to RM169.96 million from RM164.99 million.
The increase in the group’s profit was mainly contributed by the MLM and wholesale divisions, coupled with lower R&D cost in the TECHNOLOGY [] division.
The profit in the MLM increased by about 18% due toto higher sales from its main and new products, coupled with an effective incentive trip campaign.
“The MLM division has seen its performance improving since the second quarter and the group believes with the continuous effort in enhancing its existing marketing strategies and intensified members’ recruitment efforts, the MLM division’s growth momentum is sustainable,” it said.
It said on Thursday its revenue increased 8.9% to RM62.79 million from RM57.62 million. Earnings per share were 4.55 sen compared with 3.18 sen.
Elaborating on the financial performance, Hai-O said despite lower revenue in the wholesale division, higher profit in the current quarter was generated from its higher sales in high margin products.
As for the retail division, there were no significant changes in its revenue and pre-tax profit, as the division has rationalised its unprofitable outlets while it also opened more new outlets to tap into a wider market.
For the nine-month period, its net profit increased 21.6% to RM24.66 million from RM20.28 million in the previous corresponding period. Its revenue rose 2% to RM169.96 million from RM164.99 million.
The increase in the group’s profit was mainly contributed by the MLM and wholesale divisions, coupled with lower R&D cost in the TECHNOLOGY [] division.
The profit in the MLM increased by about 18% due toto higher sales from its main and new products, coupled with an effective incentive trip campaign.
“The MLM division has seen its performance improving since the second quarter and the group believes with the continuous effort in enhancing its existing marketing strategies and intensified members’ recruitment efforts, the MLM division’s growth momentum is sustainable,” it said.
