Hai-O Enterprise Bhd posted a higher pre-tax profit of RM11.064 million for the first quarter ended July 31, 2011 compared with RM10.785 million the same period last year. Revenue for the three-months however dwindled slightly to RM50.973 million compared to RM54.751 million previously.
In a filing to Bursa Malaysia today, Hai-O said the drop in revenue was mainly due to lower contribution from its principal subsidiary, the multi-level marketing division which was attributable to the slowdown in recruitment of new members and lower level of sales from its members.
"On the other hand, revenue from the wholesale and retail divisions increased as compared to the previous corresponding quarter, mainly due to the aggressive marketing strategies of the wholesale division and additional revenue generated from four new outlets set up by the retail division," the company said.
Hai-O said it remained cautious with the prolonged slackening in global economy, the European debt crisis, and the downgrading of US' sovereign credit rating.
Against this backdrop, the company said it would embark on various measures including introducing new house brand products, more effective sales campaign for distributors, more advertising and promotions as well as cost controls. -- Bernama