PETALING JAYA: Multi-level-marketing (MLM) company Hai-O Enterprises Bhd reported a sharp drop in revenue in its fourth quarter ended Apr 30 due to stricter rules on recruitment of new members, in line with more stringent requirements set by the authorities.
Net profit declined 10% to RM14.2mil versus RM15.8mil a year ago, while revenue tumbled 26% to RM98.8mil from RM132.9mil, the company told Bursa Malaysia yesterday.
The group’s performance in the fourth quarter “was below internal target,’’ the company said. But strong growth in previous quaters boosted its full year net profit ended April 30, 2010 (FY10) to RM70.9mil from 52.3mil previously.
The company declared a dividend per share of 14.5 sen in the last quarter, bringing its total payout to 28.5 sen per share.
“The next financial year wll be another challenging year for the group in view of the slowing down in sales activities in the MLM division,’’ it said.
To counter this, the group plans to launch new health supplements and increase the range of its skincare products, as well as organising more workshops for existing members.
“The board of directors is of the opinion that the group would continue to be profitable in FY11,’’ it said.