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Hai-O profit on downtrend
Mar 24, 2011
Source: The Edge Financial Daily
 

KUALA LUMPUR: Hai-O Enterprise Bhd’s earnings fell 65% to RM6.34 million for the third quarter (3Q) ended Jan 31 from RM18 million a year ago. Revenue fell to RM57.6 million from RM131.28 million a year ago due to lower sales from its multi-level marketing (MLM) division, which is its core subsidiary. Earnings per share fell to 3.18 sen from 9.02 sen previously.

“However, the retail division registered higher revenue of about 37% while pre-tax profit increased by almost 85% due to strong festive sales during the Lunar New Year  compared with last year”, it said, noting that the Lunar New Year fell in 4Q of the previous financial year.

For the nine-month period, net profit fell 63% to RM21.2 million from RM57.18 million while revenue declined 60% to RM165 million from RM412.22 million. Hai-O said the higher revenue from the wholesale and retail divisions was offset by the larger drop in revenue from the MLM division.