Amway earnings poised to improve ahead of price hikes

PETALING JAYA: Weaker consumer demand for health and wellness, as well as home appliance items, has resulted in Amway (M) Holdings Bhd’s decline in sales for the third quarter ended Sept 30, 2025 (3Q25).

Sales fell 8.1% year-on-year (y-o-y) to RM275.6mil, marking the 12th consecutive quarter of yearly contraction.

On a quarterly basis, however, revenue grew 3.3%, mainly due to a new product launch and product price adjustments during 3Q25.

Amway’s core net profit for the quarter at RM19.1mil brought the nine-month cumulative (9M25) profit to RM33.7mil.

In a report, CIMB Securities said this was broadly in line with expectations, representing 62% of its full-year forecast.

Amway declared a five sen dividend for the quarter, keeping 9M25 dividends steady at 15 sen y-o-y.

Moving forward, CIMB Securities expects 4Q25 earnings to improve, driven by the 3Q25 new product launch, which could enhance the sales mix and contribute to earnings before interest, taxes, depreciation and amortisation margin uplift.

“In addition, continued cost discipline should help sustain overall profitability.”

The research house kept its financial year 2025 (FY25) to FY27 earnings forecasts unchanged, but raised the target price (TP) to RM4.29 from RM4.25, as it rolls forward its validation base to end-FY26.

“We maintain the ‘reduce’ call on the stock.

“This is premised on Amway’s continued earnings softness post-pandemic amid subdued consumer sentiment and a competitive operating landscape, which may limit near-term earnings recovery,” CIMB Securities said.

Meanwhile, TA Research expects stronger demand in 4Q25 for home care products ahead of an average price increase of 6.4% scheduled for January 2026.

It said Amway’s 3Q25 results exceeded expectations, with 9M25 core earnings accounting for 97% of its full-year projections and 99% of consensus estimates.

“We maintain ‘sell’ with a revised TP of RM5.03 per share.”