PETALING JAYA: Amway (M) Holdings Bhd
’s earnings outlook for the financial year ended Dec 31, 2026 (FY26) remains muted, as gains from new product launches are tempered by weaker sales in the home appliances and personal care segments.
Following the company’s FY25 results briefing, CIMB Securities said it anticipates a tepid year-on-year (y-o-y) revenue growth of 3.8% in FY26, as well as higher operating expenses due to intense marketing initiatives scheduled for the year.
“While Amway’s near-term outlook is supported by its ongoing cost discipline and efficiency measures, we believe the subdued consumer sentiment and a challenging operating environment are likely to constrain earnings recovery,” it said.
The direct selling company’s revenue fell by 7.6% y-o-y to RM1.1bil for FY25.
CIMB Securities maintained its “reduce” call on Amway with a target price of RM4.15, down from RM4.20, and cut FY26 to FY28 core earnings per share projections by 1% to 2.4% to factor in operating expenses from a heavy FY26 marketing calendar.
