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Hai-O 3Q net profit falls 65pct to RM6.34m from RM18m yr ago
Mar 23, 2011
Source: Mystockfolio
 

HAI-O ENTERPRISE BHD's earnings fell 65% to RM6.34 million for the third quarter ended Jan 31, 2011 from RM18 million a year ago as revenue shrank following lower sales from its multi-level marketing (MLM) division.

The company said on Wednesday, March 23 that revenue fell to RM57.60 million from RM131.28 million a year ago due mainly due the poorer performance of the MLM division, which is principal subsidiary. Earnings per share were 3.18 sen compared with 9.02 sen.

'However, the retail division had registered higher revenue, increase by about 37% and pre-tax profit increase by almost 85% due to strong festive sale during the Chinese Lunar New Year, as compared to last year, which fell in the fourth quarter of the last financial year.

'Whereas the higher external revenue generated from the wholesale division has been offset by the lower inter-segment sales from the MLM division, which had resulted in lower pre-tax profit,' it said.

For the nine-months period, net profit fell nearly 63% to RM21.20 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.