Hai-O Enterprise Bhd recorded a 22.9% year-on-year (YoY) gain in revenue to RM351.1 million for the nine-month period ended Jan 31, 2018, on the back of increased revenue from its wholesale and multi-level marketing (MLM) divisions.
The wholesale division saw a 16% YoY rise to RM46.6 million on higher sales generated from health tonic and chinese tea products, while its MLM division’s business increased by 28.2% YoY to RM273.4 million from sales of most of its products.
However, the group’s retail revenue saw a 3.4% decrease to RM27.8 million, while revenue from its other divisions stayed stagnant at about RM3.3 million.
According to a filing to Bursa Malaysia last Friday, the group noted that its thirdquarter (3Q) review posted lower revenue of RM103.1 million compared to RM107.2 million in the corresponding quarter last year.
Its MLM division sales fell 4.9% YoY to RM75.5 million on the back of quieter months after the overseas incentive trip promotion campaign, as well as its 25th year anniversary grand sales promotion, which was held in 2Q of the current financial year.
Its wholesale division, however, saw an increase of 20.1% YoY to RM17.1 million on higher sales from its premium Chinese medicate tonic and vintage Puer tea.
A resale of treasury sales worth some RM2 million contributed to the increase as well.