Tuesday 22 December 2009

Hai-O 2Q net profit surges 85% to RM20.18m

Hai-O 2Q net profit surges 85% to RM20.18m
Written by Joseph Chin
Tuesday, 22 December 2009 19:51

KUALA LUMPUR: HAI-O ENTERPRISE BHD [] reported net profit of RM20.18 million in its second quarter ended Oct 31, 2009, a jump of 85% from RM10.89 million a year ago as more consumers bought its health and wellness products.

It said on Tuesday, Dec 22 revenue rose 51% to RM132.37 million from RM87.29 million. Earnings per share were 24.23 sen compared with 13.38 sen. It declared dividend of 10 sen per share.

"The increase in profit after taxation was mainly due to higher contributions from all main divisions. The recovery of the domestic market had increased in consumer spending which had boosted the sales of the group's health and wellness products in the second quarter," it said.

Additional increase in other income earned which included realisation of exchange fluctuation reserve on disposal of foreign associates amounting to RM624,799 had contributed to the increase in profit.

For the first half, Hai-O said revenue rose 40% to RM280.95 million from RM200.20 million a year ago, mainly due to higher sales generated by its principal subsidiaries, the multi-level marketing and retail divisions, and higher rental income generated during the financial period.

Net profit increased by about 58% from RM24.73 million to RM38.97 million due to higher revenue achieved as mentioned above. Despite lower revenue achieved by the wholesale division, it had registered higher profit by focusing on higher margin product sales.

"The MLM division had contributed over 80% of group revenue, due to its effective A&P strategies coupled with attractive overseas incentive trips and strong newly recruited distributors' force.

"Additional contribution from the retail division due to higher revenue achieved coupled with the success in its house brand products had also contributed to the increase in profit," it added.

http://www.theedgemalaysia.com/business-news/156170-hai-o-2q-net-profit-surges-85-to-rm2018m.html


Last 4 quarters results of HaiO
http://spreadsheets.google.com/pub?key=tyxw8H8-rMbZwslu4WAXkog&output=html



No comments: