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Hai-O’s Q2 pre-tax profit rises to RM20.5m
Dec 19, 2012
Source: The Malaysian Insider
 

KUALA LUMPUR, Dec 19 – Hai-O Enterprise Bhd’s pre-tax profit for the second quarter ended Oct 31, 2012, rose to RM20.49 million from RM11.25 million recorded in the same period last year.

Revenue increased to RM65.85 million from RM56.19 million mainly due to higher contribution from multilevel marketing (MLM) division and other divisions, namely manufacturing, advertising services and property investment.

“However, the lower revenue from wholesale and retail divisions partly offset revenue growth,” it said in a filing to Bursa Malaysia.

On prospect, Hai-O said the MLM division is anticipated to perform satisfactorily on the back of continuous effort to enhance its product mix, expand new market channels as well as to recruit more new members.

Furthermore, it will continue to conduct more product training for its distributors to continuously enhance their knowledge and services, it added.

Meanwhile, the wholesale and retail divisions are currently operating in a challenging environment as the slowdown in general economy has weakened the purchasing power of domestic consumers.

Nevertheless, it said these two divisions will continue to implement more effective advertising and promotion programmes by targeting the right audience.

The manufacturing division, on the other hand, has seen more orders in hand and is optimistic its performance will continue to improve further, it said.

Therefore, it said the company expected to remain profitable in the next quarter. – Bernama