Hai-O 1Q net profit soars 85% to RM17.9m

By ALIFAH ZAINUDDIN

HAI-O Enterprise Bhd reported an 85% jump in net profit to RM17.9 million in the first quarter (1Q) ended July 31, 2017, as its multi-level marketing (MLM) and retail divisions posted strong sales.

The wholesaling company told Bursa Malaysia yesterday that revenue for the quarter under review rose 58.3% to RM124.5 million from RM78.7 million a year ago, helped by the increase in product sales from its MLM business and performance of new members.

Turnover from the MLM and retail divisions rose 81.4% and 13.8%, to RM102.4 million and RM8.1 million respectively.

However, its wholesale division recorded lower revenue of RM13 million compared to RM14.2 million posted in the previous year, mainly due to a one-off Chinese liquor export sales worth RM2 million generated in the previous year.

Revenue generated by other divisions increased marginally by about 3.8%, mainly contributed by the manufacturing division.

The company said its operating environment remains challenging, on the back of weak consumer sentiment and the rising cost of living.

“The group has taken several measures to mitigate the risks,” Hai-O said in a statement.

Apart from new launches and incentives for its members, the group will also continue to enhance its marketing digital platform for all its operating segments to achieve cost efficiency and reach out to a wider group of consumers.