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Petaling Jaya, October 20, 2004 - Main Board-listed Amway (Malaysia) Holdings Berhad (Amway) has posted an unaudited sales revenue of RM456.4 million for its fiscal year ended August 31, 2004, an increase of 8% compared to its previous fiscal year. The increase was mainly driven by an increase in Distributor productivity, which in turn, was attributed to various sales and marketing initiatives undertaken by Amway. Pre-tax profit declined marginally by 2% to RM72.4 million compared with the previous fiscal year due to an increase in operating expenses and cost of goods purchased during the year. "Amway had embarked on a series of strategic imperatives in fiscal year 2004 to support the retailing efforts of Distributors and to defend our market share," said Low Han Kee, Managing Director of Amway. "These investments are necessary to take our growth to another level, especially when Amway has been in the country for more than 28 years and staying ahead means constantly innovating ourselves. However, the added costs arising from these initiatives will impact our margins, but we believe this is essential to the long-term viability of Amway". Among the significant initiatives undertaken by Amway in the last fiscal year were the opening of two new Regional Distribution Centers (RDCs) in Sibu and Melaka, bringing the total number of RDCs in Malaysia and Brunei to 12, as well as an unprecedented brand-building campaign for its range of food supplements called NUTRILITETM, a major contributor to overall sales. Costing the company RM10 million over three years, the brand- building campaign created awareness for NUTRILITETM through a concerted effort of print, electronic and outdoor advertising, public relations and event sponsorship. New product introductions and promotions continued to provide strong growth avenues to Amway. Additionally, the company's efforts to enhance its web-site with added facilities, including tying up with Public Bank and Maybank for e-payment services, has resulted in a significant increase in usage by Distributors who find ordering and paying on-line a convenient business tool. The value of orders placed over amway2u.com last fiscal year was RM226 million, or about 50% of the company's total sales revenue. The value of orders placed the previous year was 29% of total sales. Amway also announced a fourth quarter interim dividend of 7.5 sen per share less 28% income tax. With that, Amway would have paid out a total dividend of 50 sen, including a special dividend of 20 sen, amounting to a total pay-out of RM59,179,000 (after 28% tax) for the full financial year ended August 31, 2004.
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